The Telugu movie trade might have averted a strike by single-screen theatres this month throughout Andhra Pradesh and Telangana, however the challenge is way from resolved. Single-screen cinemas are pushing for a shift from the minimal assure (MG) or rental-based mannequin to a percentage-sharing association, just like the one loved by multiplexes.
Currently, single screens not solely need to pay MGs to play movies but in addition take dwelling a meagre 10% of the field workplace, whereas multiplexes retain round 50%, with the bigger chunk nonetheless going to distributors.
This challenge is particularly essential within the south, the place single-screen theatres proceed to function in giant numbers—not like within the northern states—and drive substantial field workplace earnings.
According to media consulting agency Ormax, Telugu movies grossed ₹2,348 crore in 2024, contributing 20% of India’s whole field workplace. Trade consultants estimate that over 80% of this income within the south comes from single-screen cinemas.
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“There isn’t any approach single display cinemas can survive if this continues. It is an unlucky state of affairs the place distributors are performing very excessive handed and demand the dedication of MGs from single screens solely who finally earn 10-15% of what the movie makes of their cinema, whereas multiplexes take dwelling 50%,” mentioned Yusuf Shaikh, enterprise head of characteristic movies at Percept Pictures.
Shaikh, who can also be a committee member of the Film Federation of India, added that robust associations again single-screen operators within the south and the difficulty will possible be raised in different states like Maharashtra.
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Cinemas underneath menace
A single-screen theatre proprietor, who didn’t want to be named, mentioned, “The loss is the producers’ whose movies might not launch vast if theatres don’t agree, however they don’t appear to understand this.” The proprietor warned that many small cinemas are shutting down, and the development might speed up.
“This is a time when India wants extra second tier cinemas, which might function at low prices in smaller markets. That is the one approach for display penetration to enhance. This ought to drive the trade to rethink else it’s straightforward for homeowners to change to different companies or exit,” the particular person added.
Despite decrease ticket charges, single-screen cinemas usually match multiplex earnings on account of increased footfalls. For occasion, a serious launch that earns ₹60-65 lakh in a theatre may lead to multiplexes incomes ₹30 lakh, whereas the only display takes dwelling solely ₹10 lakh.
“Such phrases are outdated and go away nothing for the exhibitor. This is pretty much as good as asking the only display to close store,” mentioned impartial exhibitor Vishek Chauhan.
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