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‘Stop creating chaos before big releases’ Producers fire back at exhibitors

‘Stop creating chaos before big releases’ Producers fire back at exhibitors

TNN / Updated: May 15, 2026, 17:16 IST

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‘Stop creating chaos before big releases’ Producers fire back at exhibitors

Following the Telangana exhibitors’ push for a revenue-sharing model, Tollywood’s top production houses issued a stinging rebuttal on Wednesday. Representatives from Mythri Movie Makers, Sithara Entertainments, Shine Screens, SVC Productions and major distribution circles — including Yalamanchili Ravi Shankar, S Naga Vamsi, Sahu Garapati, Sudhakar Cherukuri and Venkata Satish Kilaru — argued that the theatrical crisis isn’t one-sided. Insisting that distributors are feeling the burn just as acutely as exhibitors, they accused the latter of destabilising the market on the eve of several major releases.Why producers say percentage-sharing model alone won’t save the industryKey points of contention:

The theatrical crisis is affecting exhibitors, distributors and producers alike, not just theatre owners.
Producers alleged that the exhibitors’ deadlines sounded more like “threats” than discussions aimed at resolving the issue collectively.
Many big-budget films are already deep into production, with nearly 70–80% of budgets spent, making it difficult to suddenly shift to a new revenue-sharing structure midway.
Producers clarified they are open to discussing a percentage-sharing model for future films, but only after detailed discussions among all stakeholders.
Several single-screen theatres across Telugu states require major infrastructure upgrades, including better projection systems, sound quality, seating, air-conditioning and maintenance.
Introducing a percentage-sharing model alone will not automatically bring audiences back to theatres without improving the cinema-going experience.
Changing audience habits, weak theatrical content over recent months, shrinking OTT windows and rising production costs are collectively hurting the industry.
Theatre grading and categorisation based on facilities, capacity and location should be implemented before introducing a uniform percentage-sharing system.
Also demanded discussions on online ticket booking convenience fees, maintenance charges and other operational costs

Sahu Garapati

Yesterday’s press meet sounded more like a threat than an invitation for discussion. Every film is our film. Only when cinema runs successfully does the entire industry survive

Sahu Garapati

Sudhakar Cherukuri

If exhibitors were not treated fairly for the last 20 years, why is this concern arising only today? Even during Sankranti releases, ticket price hikes were approved

Sudhakar Cherukuri

S Naga Vamsi

At least 25 films have already crossed 50% shooting completion with nearly 70–80% of budgets already spent. Introducing a new system at this stage is simply not practical

S Naga Vamsi

Yalamanchili Ravi Shankar

None of the three sectors—exhibitors, distributors or producers—are truly comfortable today. The industry has been struggling for the past four to five months due to a lack of strong theatrical content

Yalamanchili Ravi Shankar

— Compiled by: Sanjana Pulugurtha

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