Headline: Percentage System Controversy: Chiranjeevi to Meet Exhibitors Over Andhra Theatres Row
Andhra Pradesh: The simmering dispute over the implementation of the ‘Percentage System’ in movie ticket pricing and revenue sharing has taken a new turn. In a significant development, a delegation of film exhibitors from Andhra Pradesh is set to meet with megastar and prominent industry figure Chiranjeevi to resolve the ongoing deadlock. The meeting, which is expected to take place later this week, comes amid growing tensions between producers, distributors, and theatre owners over the new revenue model.
The Core of the ‘Percentage System’ Controversy
The controversy revolves around a proposal to shift from the traditional Minimum Guarantee (MG) system to a strict ‘Percentage System’ for film releases. Under the current MG model, distributors pay exhibitors a fixed sum regardless of the film’s performance. The proposed percentage system would instead link ticket sales revenue directly to the theatre’s earnings, meaning exhibitors would earn based on a fixed share of the box office collections.
Proponents of the change argue that the Percentage System is fairer for smaller films and reduces financial risk for distributors. However, exhibitors have raised strong objections, claiming that the model is unviable for theatres in tier-2 and tier-3 cities in Andhra Pradesh. They argue that operational costs, including electricity, maintenance, and staff salaries, are fixed and not covered by fluctuating revenue shares. “The percentage system, as proposed, does not account for the ground realities in regional centres. Theatres in smaller towns operate on thin margins, and this model could lead to closures,” said a senior exhibitor from Guntur District.
Chiranjeevi’s Role as a Mediator
Megastar Chiranjeevi, who holds significant influence in both the film industry and regional politics, is being looked upon as a neutral arbiter. As the chairman of the Andhra Pradesh Film Development Corporation (APFDC), he has been actively involved in resolving industry disputes. Sources close to the development confirm that the exhibitors’ delegation will present a detailed memorandum to Chiranjeevi, listing the challenges of implementing a blanket percentage system.
“We have immense respect for Chiranjeevi garu. He understands the industry’s pulse and the economic realities of running a theatre in Andhra Pradesh. We are hopeful that a balanced solution can be reached that protects both the producer’s investment and the exhibitor’s livelihood,” stated a representative of the Andhra Pradesh Film Chamber of Commerce ahead of the talks.
Impact on Film Releases and Audience
The disagreement has already caused visible ripples in the industry. Several new releases have faced delays in securing screens, especially in key districts like Visakhapatnam, Vijayawada, and Tirupati. The uncertainty has left filmmakers worried as the festive season approaches. For moviegoers, the stalemate could mean fewer new releases in local theatres, pushing them towards OTT platforms.
The percentage system debate is not unique to Andhra Pradesh. Neighbouring states like Tamil Nadu and Telangana have experimented with similar models, though with varying degrees of success. In Andhra, the situation is further complicated by the high levels of entertainment tax and electricity tariffs, which exhibitors say make strict percentage-based revenue sharing unfeasible.
What Lies Ahead?
The upcoming meeting between Chiranjeevi and the exhibitors is a crucial step toward de-escalating the crisis. Both sides are expected to propose a hybrid model—one that combines a base guarantee with a percentage share once collections cross a certain threshold. Industry watchers believe that a middle path is achievable if all stakeholders, including producers and distributors, agree on a time-bound pilot project.
Conclusion
As the television cameras prepare to capture the momentous meeting, the entire film ecosystem of Andhra Pradesh watches with bated breath. The outcome of the talks between Chiranjeevi and the exhibitors will likely set a precedent for revenue sharing in the state’s cinema business. For now, the focus remains on dialogue and finding common ground. In an industry built on creativity and collaboration, a sustainable financial model is the only way to ensure that the silver screen continues to shine in Andhra Pradesh.
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*Source: https://vaartha.com/entertainment/tollywood-percentage-system-dispute-megastar-chiranjeevi-meets-dil-raju-exhibitors/713989/*