Recently, the Telangana State Film Chamber of Commerce proposed a resolution to move away from the rental system and adopt a percentage-based revenue model. Under this system, the distributors will get 60 percent share from the nett in the first week, 50 percent share in the second week and 40 percent share in the third week.
The Active Producers Guild issued a statement rejecting this 60-50-40 percentage-sharing model. The Guild termed it a unilateral decision by the TFCC and made it clear they are not willing to screen films in theatres that operate under this model.
Producers firmly stated that they want to continue with the existing system, where terms are decided through negotiations with exhibitors. Mythri Ravi Shankar, TG Vishwa Prasad, Naga Vamsi, Swapna Dutt, Sahu Garapati, and Venkata Satish Kilaru are among those opposing the TFCC decision, as they believe it could impact their revenues.
In the existing system, producers and distributors benefit more. But if the percentage model is implemented, it could significantly impact producers’ earnings and, in turn, box office numbers, while theatres will breathe a sigh of relief. We need to see how this issue ends.
