Film exhibitors' June strike threatens new releases in Andhra, Telangana
Film distributors have demanded a shift to a revenue-sharing model under which they would get a share of revenue earned from ticket sales
The Telugu film industry’s hopes of a blockbuster run in June with packed big ticket releases is facing the bleak prospect of a shutdown in Andhra Pradesh and Telangana by cinema exhibitors from June 1 if they fail to reach a consensus with movie producers over their demand to shift from the current rental system to a revenue-sharing system.
What are distributors demanding?
Pointing out that under the current system, they have to pay a fixed rent for screening movies regardless of how the films perform at the box office, cinema exhibitors have argued that the system is no longer profitable. They have instead demanded that there should be a revenue-sharing model under which they would get a share of revenue earned from the sales of tickets.
A meeting reportedly took place on Sunday (May 18) in Hyderabad between 60 exhibitors and major Telugu film producers, including Dil Raju and Suresh Babu, to resolve the issues regarding the prevalent rent-based revenue model.
During the meeting, the exhibitors reportedly warned of an indefinite shutdown from June 1 in both the Telugu states unless the issue of the rent-based revenue model is resolved.
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Concern over OTT release
According to reports, the issue of the release of films on OTT platforms shortly after their run on the big screens was also raised at the meeting, and a suggestion to delay the digital release for a longer period was put forward.
While a majority of single-screen theatres are likely to stay closed in case the strike takes place, multiplexes that are not part of the exhibitors’ association may continue to operate.
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Internal disagreement
There are reports that several major distributors and producers skipped the meeting, indicating internal disagreement over the issue. A formal representation will be submitted to the Film Chamber for future meetings ahead of the June 1 deadline, said a report in the Hindustan Times.
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Releases likely to get hit
If the talks fall through, some major summer releases may get hit. The list includes Mani Ratnam’s Kamal Haasan, Silambarasan TR, and Trisha Krishnan-starrer Thug Life scheduled for release on June 5 in both Telugu states in Tamil and a dubbed Telugu version.
Then there is Krish and Jyothi Krishna’s Hari Hara Veera Mallu: Part 1, starring Pawan Kalyan, Bobby Deol and Nidhhi Agerwal, which will release on June 12.
If the issue drags on, Sekhar Kammula’s Dhanush and Nagarjuna-starrer Kuberaa, scheduled to be released on June 20, and Manchu Vishnu’s Kannappa (slated for a June 27 release) will be affected.