Andhra Pradesh, Telangana theatres to shut from June 1 over revenue model dispute: Reports

The Telugu film industry is bracing for a storm just as it was hoping for a revival this summer. Accoring to reports, theatre exhibitors in Andhra Pradesh and Telangana have announced they will shut down single-screen cinemas indefinitely starting June 1, 2025, which has raised new worries throughout the entertainment sector.

Sources stated that this decision came after a crucial meeting at the Telugu Film Chamber, where over 60 exhibitors and prominent producers, including Suresh Babu and Dil Raju, gathered. According to a media organisation, the exhibitors have united to protest against the current rental-based revenue system, which they argue is financially unsustainable.

Currently, theatre owners are stuck paying a fixed daily rental, no matter how well a film does at the box office. With dwindling audiences and rising costs, exhibitors believe this model is outdated. They are advocating for a revenue-sharing approach that ties earnings to actual ticket sales.

If the shutdown goes ahead, several major releases scheduled for June could be in jeopardy. Kamal Haasan’s Thug Life (Telugu version) on June 5, Pawan Kalyan’s Hari Hara Veera Mallu on June 12, Dhanush’s Kubera on June 20, and Manchu Vishnu’s Kannappa on June 27 are all at risk of being affected.

While some multiplexes may keep their doors open, single-screen theatres, especially in smaller cities, are likely to close. Exhibitors are also asking for a delay in OTT releases to safeguard their theatrical revenues.

According to reports, as the June 1 deadline approaches, everyone involved is scrambling to reach a compromise. A formal petition is expected to be submitted soon, but unless an agreement is reached, the future remains uncertain for the industry.