Single screens rebel as revenue model puts Telugu cinema on edge
The Telugu film industry may have avoided a strike by single-screen theatres this month across Andhra Pradesh and Telangana, but the issue is far from resolved. Single-screen cinemas are pushing for a shift from the minimum guarantee (MG) or rental-based model to a percentage-sharing arrangement, like the one enjoyed by multiplexes.
Currently, single screens not only have to pay MGs to play films but also take home a meagre 10% of the box office, while multiplexes retain around 50%, with the larger chunk still going to distributors.
This issue is especially crucial in the south, where single-screen theatres continue to operate in large numbers—unlike in the northern states—and drive substantial box office earnings.
According to media consulting firm Ormax, Telugu films grossed ₹2,348 crore in 2024, contributing 20% of India's total box office. Trade experts estimate that over 80% of this revenue in the south comes from single-screen cinemas.
Also read: Independent producers, boutique studios veer towards regional cinema for big gains
'There is no way single screen cinemas can survive if this continues. It is an unfortunate situation where distributors are acting very high handed and demand the commitment of MGs from single screens only who eventually earn 10-15% of what the film makes in their cinema, while multiplexes take home 50%," said Yusuf Shaikh, business head of feature films at Percept Pictures.
Shaikh, who is also a committee member of the Film Federation of India, added that strong associations back single-screen operators in the south and the issue will likely be raised in other states like Maharashtra.
Also read: The rise of Hollywood-style cinematic universes in southern films
Cinemas under threat
A single-screen theatre owner, who did not wish to be named, said, 'The loss is the producers' whose films may not release wide if theatres don't agree, but they don't seem to realise this." The owner warned that many small cinemas are shutting down, and the trend could accelerate.
'This is a time when India needs more second tier cinemas, which can operate at low costs in smaller markets. That is the only way for screen penetration to improve. This should force the industry to rethink else it is easy for owners to switch to other businesses or exit," the person added.
Despite lower ticket rates, single-screen cinemas often match multiplex earnings due to higher footfalls. For instance, a major release that earns ₹60-65 lakh in a theatre might result in multiplexes earning ₹30 lakh, while the single screen takes home only ₹10 lakh.
'Such terms are outdated and leave nothing for the exhibitor. This is as good as asking the single screen to shut shop," said independent exhibitor Vishek Chauhan.
Also read: Back to basics: PVR Inox to tap into underserved regions of India with low-cost cinemas for growth
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