Percentage System Back Just Before Peddi & Toxic!

A day ahead of the Release of two major releases – Biker and Rakasa, Telangana Exhibitors brought up the issue of Percentage System once again. Twenty Three Single Screen Theaters owners have released a Press Note that they will operate only under Percentage System going forward.

The terms would be 60% for first week, 50% for Second Week, and 40% for Third Week with One Show Housefull Gross as Hold Over. They say this system will be followed across the state in Stages. 

Big Players – Suniel Narang, Sirish Reddy, and Bobby (Geetha) have agreed to this but Mythri Sasi did not as the Distribution has some of the Big Budget Films and they will be most impacted if the Percentage System is followed.

The Percentage System issue has come last year and it first started in East Godavari. And was spread to other areas. Producers have rejected that outrightly but when Pawan Kalyan thought they were trying to stop his Hari Hara Veeramallu. They issue got mellowed down.

It is true the Rental System is making life difficult for the Exhibitors as for most films, the Distributors are shifting to Percentage System when the movie slows down on First Monday.

It is like the Distributors pay Rent when the movie is doing good and give peanuts on Percentage Basis when the movie is not doing good.

On the other hand, Producers are not willing to go to Percentage System permanently as their Shares will be severely impacted especially in the First Weekend. They say they can not take the hit with the non-theatrical market already down and audiences not coming to Theaters.

SVC Group which is a strong advocate of Percentage System opted to push this issue before their Big Release, Toxic to send an indication that they are doing all this for the Good of Theaters. However, it is just before Mythri’s Big Release – Peddi. So the battle lines are clearly drawn. 

Obviously, Distributors of both the film’s will suffer due to the Percentage System. But the Hit is like Bigger the film Bigger the Hit. 

We will have to see if this issue leads to a conclusion or we may see Theaters shutting down again until it is resolved.