Hyderabad: Peddi starring Ram Charan has become the centre of a major dispute in the Telugu film industry ahead of its scheduled June 4 release, with single-screen theatre owners across Telangana threatening not to screen the film unless producers agree to a revised revenue-sharing system.

What initially appeared to be a limited issue involving a few theatres in Hyderabad has now expanded into a larger conflict across the Nizam region, raising concerns within the industry about theatrical business sustainability.

Exhibitors say the current rental-based exhibition model is no longer financially viable due to rising operational expenses and declining footfalls at cinemas.

Single-screen theatres demand new revenue model

The controversy revolves around the long-running disagreement between exhibitors and producers over theatrical revenue distribution.

At present, many Telugu films follow a rental-based system in which theatres pay fixed rental amounts to producers or distributors irrespective of the film’s actual box office performance.

Single-screen theatre owners argue that the system places excessive financial pressure on cinemas, especially during periods of weak audience turnout.

According to exhibitors, daily operational costs for theatres now range between Rs 12,000 and Rs 18,000, including electricity bills, staffing, maintenance and licensing expenses.

They claim that under the existing arrangement, many theatres are struggling to survive financially.

Exhibitors push for percentage-based sharing

Theatre owners are now demanding a percentage-based revenue-sharing model instead of fixed rentals.

Under the proposed structure, exhibitors are seeking a 60 per cent revenue share during the first week of release, 50 per cent in the second week and 40 per cent from the third week onwards.

Exhibitors say similar systems are already followed in several other Indian film industries and believe the change would help protect smaller cinemas from mounting losses.

Industry insiders suggest that theatre owners are using the release of a major star-driven film like Peddi to push for reforms that have been discussed for years.

Peddi seen as crucial release for Telugu industry

The timing of the controversy is significant because Peddi is considered one of the most important Telugu releases of the year.

Members of the film industry reportedly hoped the film would revive theatrical business after several months of underwhelming box office performance across Telugu cinema.

With Ram Charan returning in a high-profile sports action role, trade analysts expect strong opening collections in Telugu-speaking states if the release proceeds smoothly.

However, the ongoing dispute has created uncertainty around the film’s release strategy in Telangana.

Mythri Movie Makers reportedly oppose proposal

According to reports, Mythri Movie Makers has emerged as one of the strongest opponents of the exhibitors’ proposed revenue-sharing system.

The production banner is presenting Peddi worldwide, which has made the disagreement more sensitive ahead of the release.

Exhibitors, however, maintain that the issue is not specifically targeted at Peddi or Ram Charan, but is instead part of a broader effort to reform exhibition practices in Telangana.

Star-studded cast and large-scale production

Directed by Buchi Babu Sana, Peddi is described as a sports action drama featuring Ram Charan in the lead role alongside Janhvi Kapoor, Shiva Rajkumar, Jagapathi Babu and Divyenndu.

The film is produced by Venkata Satish Kilaru under Vriddhi Cinemas and co-produced by IVY Entertainment. It is also associated with Sukumar Writings.

The makers have stated that Ram Charan underwent extensive physical preparation and training to bring authenticity to his character.

As negotiations continue between exhibitors and producers, the Telugu film industry is closely watching whether a compromise can be reached before Peddi’s release date.