The Telugu Film Chamber of Commerce (TFCC) has officially intervened in the growing conflict between Tollywood producers and theatre exhibitors, urging both parties to reach an immediate resolution to avoid a potential shutdown of theatres across Andhra Pradesh and Telangana. Over the past week, tensions have escalated over the revenue-sharing model, with exhibitors demanding a shift to a percentage-based system for film collections. In a bold move, theatre owners warned they would shut down all screens in the Telugu states starting June 1 if their demands aren’t met a move that could paralyze the regional film industry.
In response, TFCC penned a formal letter to the Telugu Film Producers Council, requesting swift action. The letter acknowledged the exhibitors’ meeting held on May 18, during which they unanimously decided to operate only under a percentage-based system moving forward. The exhibitors also declared that failing to implement this change would result in a complete theatre blackout from the first of June.
"The AP and Telangana Exhibitor Sector has clearly stated that they will no longer agree to fixed rental or alternative models and are demanding a shift to revenue percentage sharing," the TFCC letter said. "They have warned of a statewide theatre shutdown if this demand is not addressed by June 1." To prevent an industry-wide crisis, TFCC urged the Producers Council to provide an official stance on the matter. The Chamber also expressed readiness to facilitate a joint meeting between the two sides to help mediate the issue and ensure a sustainable resolution for the benefit of the entire Telugu film ecosystem.
Industry insiders warn that a shutdown could have a significant financial impact, especially with several major releases lined up for the second half of 2025. The conflict also puts upcoming producers, distributors, and thousands of theatre employees at risk, underscoring the urgency of the situation. While disagreements over revenue sharing are not new in the film industry, this standoff appears more serious due to its timing and the exhibitors' firm deadline. The TFCC’s involvement suggests that the matter is now being treated with high priority.
As of now, producers have yet to issue a formal response. However, the pressure is mounting for a compromise. A prolonged conflict could not only stall film releases but also damage long-standing relationships between producers and exhibitors relationships that are vital to Tollywood’s functioning. With less than two weeks until the proposed shutdown date, all eyes are now on the Producers Council to initiate dialogue and avoid a crisis that could affect the entire Telugu film value chain.
