The Telangana State Film Chamber of Commerce supports establishing a system that ensures a new distribution system of benefits for exhibitors when the theatrical rights in the Nizam territory are valued less. If the value ranges from Rs 3 Cr to 10 Cr, exhibitors will earn 50%, 60%, and 70% over the first three weeks, respectively.
Producers say that this new arrangement will advantage exhibitors at the expense of producers and distributors. "This will be a big blow to small and mid-range films. If those films become successful, distributors or producers won't get a good deal in profits. Usually, a successful big film's fruits should go to its producer and distributor. The new arrangement will be beneficial only for exhibitors or the people who have a theater chain," 'Baby' and 'Taxiwala' producer SKN said.
"Every movie would have its own terms between the producer and distributor. As per the new policy, the producer has to make the exhibitor also a party in the agreement," writer BVS Ravi analyzed, taking the side of the producers.
The new policy will come into effect from July 1.
Recently, single screens in Telangana shut shop for a period of ten days owing to discouraging footfalls and increasing maintenance costs.
