Theatres could be shut down in AP, Telangana from June 1

In a move that could disrupt major upcoming film releases, cinema exhibitors from the Telugu states of Andhra Pradesh and Telangana have warned of a state-wide shut down of theatres starting June 1. Their primary demand: a shift from the current rental-based model to a more sustainable revenue-sharing system with producers.

The decision was taken during a crucial meeting held on Sunday at the Telugu Film Chamber of Commerce in Hyderabad. The gathering saw participation from nearly 60 exhibitors across both states, alongside prominent producers Dil Raju and D Suresh Babu. During the meeting, exhibitors voiced their growing frustration over mounting losses due to rising operational costs, including electricity and maintenance, and dwindling audience turnout.

The rental model is no longer viable. A percentage-based revenue-sharing system is the only way forward, exhibitors reportedly told producers. They argued that without a fair share in collections, running theatres has become unsustainable — with some shows being cancelled for not even meeting a minimum audience threshold.

The exhibitors have decided to draft and send an official letter to producers, clearly outlining their demands and announcing their intent to shut down operations if a resolution isn’t reached. In fact, exhibitors from East Godavari have already declared their decision to close theatres from June 1, citing severe financial stress.

If the impasse continues, the fallout will be felt across the industry. Several big-budget films slated for release in June could be severely affected. Kamal Haasan’s highly anticipated Thug Life, particularly its Telugu dubbed version, might struggle to find screens outside of multiplexes not affiliated with the exhibitors’ association.

Hari Hara Veera Mallu, scheduled to be released on June 12 may also be affected by this development. With large-scale investments and distribution advances already tied to the project, any disruption could have serious financial consequences.

As exhibitors from the Telugu states prepare to serve a notice of the shut down of theatres and finalize their action plan, all eyes are now on producers and their response.

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