
In movie theaters, the rental system involves distributors paying a fixed fee (rent) for the right to show a film, regardless of ticket sales. The percentage system involves the theater receiving a percentage of the ticket sales revenue.
It has been a long-standing demand of hundreds of exhibitors in the Telugu States that the percentage system be brought back. Their demands haven’t been met. This year, theatres have seen dwindling footfalls like never before. Even the movies of Siddu Jonnalagadda (Jack), Kalyanram (Arjun Son Of Vyjayanthi), Nithiin (Robinhood) and Vishwak Sen (Laila) have bombed at the box office.
Exhibitors from the East Godavari district have threatened that they will shut down all theatres from June 1st if the percentage system is not introduced. They are unhappy with rentals.
Similar demands were made in 2021. Nearly 100 exhibitors from the Telugu States reached the Telugu Film Chamber in Hyderabad, alleging that they have been taken for a ride. They stated that they couldn’t afford to maintain theatres owing to high costs and falling admissions.Â
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