Tollywood Guild Split For 1st Time: What’s Happening?
The Tollywood producers guild is one of the unified bodies in the cinema industry and they’re expected to be bound by solitude.
By: Tupaki Desk | 9 April 2026 10:39 AM ISTThe Tollywood producers guild is one of the unified bodies in the cinema industry and they’re expected to be bound by solitude. But a particular situation has come up in the Tollywood guild and let us have look into the same.
A serious internal rift has surfaced within the Active Telugu Film Producers Guild for the first time since its formation. The disagreement is over a proposed shift from the long followed rental model to a percentage based revenue sharing system between producers and theatres in the Nizam region.
Around twenty three theatres in the Nizam region are planning to adopt the percentage model from April 30. This has triggered strong resistance from a section of producers who fear that the new method will significantly affect their box office returns, especially for big budget films that depend on strong opening collections.
16 producers have reportedly written a formal letter opposing this move and demanding continuation of the rental system. A major chunk of this opposition is said to be from banners associated with Mythri Movie Makers which is expected to have multiple releases impacted by this change.
However, key industry figures like Dil Raju, Suniel Narang, and Allu Aravind did not sign the letter. Their silence is being seen as indirect support for the percentage system, arguing that theatres are struggling to survive under the rental model when films fail after the first weekend.
This difference of opinion has now created a visible vertical split within the Guild, raising concerns about unity during a financially sensitive period for Tollywood.
