From June 1st, all theaters in the Nizam region will implement a revenue-sharing model instead of the traditional rental system for screening films.
This decision, led by exhibitors, aligns single screen theaters with the revenue model already followed by multiplexes.
The move has sparked controversy, particularly in East Godavari, but exhibitors argue it ensures fairer financial treatment.
Under the rental model, single theaters receive fixed amounts regardless of a film's performance.
While this benefits them for smaller films, they lose significant profits on big-budget hits that could generate far higher revenue on a sharing basis.
With only around 10% of films each year performing strongly at the box office, exhibitors believe shifting to a percentage-based system allows them to capitalize better on major releases.
Single screen theaters now also reserve the right to cancel shows with poor audience turnout, mirroring multiplex operations. This strategic shift marks a significant transformation in regional film distribution economics.