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Naga Vamsi on Telugu Film Industry Revenue Sharing Debate

Telugu film producers have stated that not just exhibitors, but also distributors and producers are currently facing significant challenges in the industry.
Recently, theatre exhibitors held a press meet highlighting their difficulties and demanded the implementation of a percentage-based revenue-sharing system. In response, Telugu film producers addressed the media on Wednesday evening to present their side of the issue.
Producer Suryadevara Naga Vamsi, speaking at the press meet, said that the entire film ecosystem is interconnected, and if one segment suffers, all three—producers, distributors, and exhibitors—will be impacted. He noted that exhibitors had already admitted to struggling conditions and even mentioned that certain theatres, including Sriramulu, had shut down due to lack of strong content.
“If exhibitors impose such conditions, it will further reduce the flow of content from producers. That will not benefit anyone. Decisions should not be one-sided or presented with deadlines,” he said.
Naga Vamsi further pointed out that around 25 films represented at the meeting are already deep into production, with more than 50% of shooting completed. He added that producers have already invested 70–80% of their budgets into these projects, making it difficult to adopt a new revenue system at this stage.
However, he clarified that producers are open to discussing the percentage model for future films, provided key issues such as theatre grading, maintenance charges, and online booking convenience fees are addressed first.
He also criticized the stance of a major exhibitor, stating that while large multiplex operators with hundreds of screens dominate the market, they should also be mindful of the struggles of single-screen theatres.
Responding to claims that the percentage system is successful in other states, Naga Vamsi argued that the overall situation elsewhere is also not favorable and questioned why the Telugu industry should revert to a system that may not be beneficial.
He concluded by emphasizing that distributors play an equally important role in the ecosystem, stating that weakening one side to strengthen another would not help the industry. Improving facilities in single-screen theatres, he added, could naturally bring more audiences back to cinemas.














