Guild Splits for the First Time Over the Percentage System!

The Active Telugu Film Producers Guild (ATFPG) was first started under the leadership of Dil Raju to safeguard the interests of the Producers who are into actively making films. But then, for the first time, there is a split in the Guild.

We know that certain theaters in Nizam (twenty three of them) have announced they are going to operate only in Percentage System and slowly it will be extended to all theaters in Nizam from April 30th.

Opposing that, Sixteen Producers of the Guild have sent a letter that the system is not acceptable to them. They wrote they wish the existing rental system will continue and they will negotiate terms with the Exhibitors.

Only glaring missing names in the letter are those of Dil Raju and Suniel Narang who have the major chunk of theaters in Nizam.

The Producers are worried they will get lesser shares for their films if Percentage System is implemented but those supporting that say theaters can not survive on the present Rental System.

There is a complaint that Dil Raju wants to push this system to cut Mythri into size because the majority of Big films are with them and Dil Raju’s compound is not into making such films in near future.

To negate that argument, the issue was brought to the front before SVC’s big release, Toxic. Dil Raju has sent a message that he is taking this decision for the greater good of the theaters.

Mythri’s Peddi will be most impacted but Toxic will face the first cut when the system is implemented.

Mythri and all the producers making big films are opposing this system. They say the film business is already in doldrums and this change will bring bigger problems. This is the first time the Guild is split vertically on any issue.

Another name missing in the list is Allu Aravind. Aravind also seems to be also in favor of Percentage System.

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, the 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.