23 Hyd single screens shift to revenue-sharing model

In a significant shift, 23 single-screen theatres across Hyderabad have moved away from the traditional rental model and adopted a percentage-based revenue-sharing system, effective Friday.

The announcement was made by the Telangana State Film Chamber of Commerce. The move brings single screens closer to multiplex chains, which have long followed revenue-sharing arrangements with producers, typically tailored to individual film agreements. Referring to the single-screen theatres involved, Suniel Narang, President, Telangana State Film Chamber of Commerce, said, “Single-screen theatre owners have been incurring heavy losses under the existing rental model.

This move is essential for survival of single screen theatres, because the level of losses was such that many single screens were on the verge of shutting down. Even when ticket prices increased — for instance, from `175 to `275 — the additional revenue didn’t benefit theatre owners.

”Suresh Babu, president of the Telugu Film Chamber of Commerce, said, “This model creates a more balanced risk-sharing mechanism between exhibitors and distributors.

If multiplexes can operate on a percentage basis, there’s no reason single screens shouldn’t. In fact, exhibitors are now offering better terms — around 60% instead of 50%. As for its impact on upcoming releases, there won’t be any drastic change — just a slight correction in the system.

”

Instead of paying fixed rent, theatres will share ticket earnings with the film distributorsThe share changes week by week:Week 1: Distributor gets 60%, theatre keeps 40%Week 2: Distributor gets 50%, theatre keeps 50%Week 1: Distributor gets 40%, theatre keeps 60%