Rental Vs Percentage: This Is The Major Difference

The ongoing tussle between the Telugu Cinema Industry’s top-notch active Producers and Exhibitors regarding implementing the ‘percentage system’ of revenue sharing has surely taken the headlines. The Telangana exhibitors have clarified that they will not be allowing even Peddi to release in the state if the percentage system is not implemented. So what’s the difference between the already existing rental system and the newly demanded percentage system? Have a look.

In fact, currently, for all single-screen theatres in the Telugu states, if a film collects ₹1 crore in gross, the theatre gets ₹7 lakh as rent for the same. For small movies, there will be daily rentals or weekly rentals for the release. Irrespective of the crowd walking in, whether there is 1% occupancy or 100% occupancy, the rental will be the same. However, if the producers agree to the percentage sharing system, then they have to give around 45-55% of this revenue to the Theatre Owners in the first week, and the percentage goes down in the coming weeks.

On the whole, they might get 35% of the share from this ₹1 crore if the film runs for 3 weeks. And this type of system is already being implemented in the multiplexes, even in Andhra Pradesh and Telangana. Now, the Exhibitors owning single-screen theatres are also demanding the same. Currently, the Exhibitors from Telangana are going to meet Megastar Chiranjeevi on Monday evening at 4 PM as per the reports, and a solution for the issue might come out then.