It's Official: Telangana Theatres Move To New Share Policy!

For the last few years that have been a lot of discussions and debates happening about the revenue, sharing model between distributors and exhibitor in Telangana. Now there is finally a bit significant development on the same, and let us have a look into the matter.

Telangana theatre owners have taken a big step to help single-screen cinemas survive in the changing film business.

Starting April 3, 2026, 23 theatres in Hyderabad and across Telangana will stop using the old rental system and switch to a percentage-based revenue model for film screenings. This means producers and distributors will get a share of ticket sales instead of paying a fixed rental fee to the theatre.

Under the new agreement, distributors and producers will receive 60% of the revenue in the first week, 50% in the second week, and 40% in the third week of a movie’s run. Exhibitors and theatre owners keep the rest. For some big-budget films, there may be an extra share of about 2.5% to 5% if ticket prices are increased.

This change comes amid rising costs and shifting audience behaviour that have made the traditional rental model difficult for many independent theatres.

Single screens in smaller cities and towns especially have struggled to cover costs and stay open, while multiplex chains often operate on the percentage model already.

By adopting this shared-revenue plan, exhibitors hope to make screening films fairer and more sustainable for all sides theatre owners, distributors and producers.

The move also aligns with similar discussions among South Indian film industries and distributors, who have been talking about revenue sharing and better conditions for single screens. At least one distributor has not agreed to the new terms, so not all theatres under their control will take part yet.