Tollywood is left in a huge financial stress due to several issues. After the decline in the digital rights, the producers are left in a stress. The decline in the footfalls in theatres added more stress for the problems of the producers. The exhibitors of Telugu states are struggling as there are lack of prominent films releasing from the past two months. They have been raising their voice against the rental system and are demanding a percentage model for single screens. The screencount of single screens is coming down every year as the business is not viable. The exhibitors of Nizam interacted with the media and discussed their problems on an open stage. The biggest question for everyone is which model makes sense?
The top and active producers are opposing the percentage model as the revenue share in the first week will be given to the exhibitors. With a film’s theatrical business ending in less than two weeks, the producers are not ready to approve the percentage model so that they can make most of the money in the first week. The exhibitors argue that they are getting rents in the first week for big films and when the film runs on a percentage basis in the second week, they get very less revenue share which is not even enough for the maintenance of their screens.
The Nizam exhibitors announced that more than 1000 screens were shut down in the past few years. After the release of RRR, more than 100 single screens in Nizam are closed because of the losses. Top distributor and producer Asian Suniel says they are trying hard to prevent the monopoly of multiplexes and this can be possible only if single screens survive. This is absolutely true. The corporate firms write their own rules and dictate them. The digital platforms are doing the same and the producers are left restless. Once the multiplexes dominate the business, it would add more problems for the producers.
The exhibitors have decided to fight against all the odds and their press conference has unveiled several facts. They have explained about the pain and their challenges. More than 90 percent of the screens across the Telugu states are closed due to the lack of films and footfalls. They are paying for the maintenance and the salaries from their pockets. At this time, the producers have to rethink their decisions for the survival of the single screens.
The real problem lies with the actors who are charging staggering remunerations. The producers have to explain the ground reality to the stars and the revenues of the films. They have to convince them to work on a profit sharing model to reduce the stress. The problems are from both sides and to stay in business, the producers and exhibitors have to settle the issue amicably before the damage happens for all of them.
There has to be a possible solution soon as there are a lot of films releasing from June.
