Chiranjeevi saves Ram Charans Peddi, Telangana theatres give green light under rental system

Megastar Chiranjeevi's intervention breaks the deadlock between Telangana exhibitors and producers ahead of Peddi's release (Photo: PeddiMovieOfll, KChiruTweets/ X)The Telugu film industry has stepped back from the edge of a major crisis, at least for now. The Telangana State Film Chamber of Commerce issued an official press note clearing the path for the release of Ram Charan’s ‘Peddi‘ after Megastar Chiranjeevi personally intervened in the ongoing standoff between single-screen exhibitors and producers over the rental versus percentage-sharing debate. The press note stated that after discussions with Chiranjeevi, the Telangana exhibitors have agreed to follow the letter circulated by the Telugu Film Chamber of Commerce, allowing Peddi to release smoothly under the current rental system.What was the fight about? At the heart of this dispute is a long-standing grievance that single-screen theatre owners across Telangana have been nursing for years. Under the present rental system, theatres pay a fixed amount to producers or distributors regardless of how well a film performs at the box office. Whether the seats are full or empty, the rent stays the same, leaving theatre owners exposed to heavy losses when a film underperforms. For example, according to the film chamber, if a movie earns Rs 1 crore gross, a single-screen theatre receives around Rs 7 lakh as rent, while the remaining Rs 93 lakh flows through the distribution chain back to producers. Multiplexes, by contrast, operate on a percentage-sharing model and take home around Rs 45 lakh from the same Rs 1 crore collection. Also Read: Shatrughan Sinha has never been tough on Sonakshi: ‘He is soft, a silent supporter’ This disparity has pushed exhibitors to demand what they call a level playing field. Distributor and exhibitor Sirish Reddy pointed out that while producers follow a percentage-sharing model in Maharashtra, Delhi, and Karnataka, they have remained unwilling to implement the same system in Andhra Pradesh and Telangana. He also revealed that nearly 100 theatres have shut down since the release of RRR due to severe financial losses. In the same conversation, exhibitors say that some theatre buildings can earn more money if rented out as warehouses, but owners have continued running cinemas out of their commitment to the medium. The standoff before Peddi Exhibitors pushed hard for the percentage system to be applied even to big-ticket films like Peddi, and while they were open to accepting a slightly lower percentage, they remained firm on moving away from the rental model entirely. They demanded a written commitment from producers before the release. Producers, on the other hand, proposed a rental model with an additional 7.5% revenue share as a compromise, which exhibitors rejected.Story continues below this ad The conflict had already shown its teeth when the film Jetlee reportedly faced screening issues on its opening day because of this disagreement. With Peddi set to open on June 4, the stakes were considerably higher given the scale of the film. Also Read: Divyenndu Sharma on why Ram Charan’s Peddi gave him sleepless nights: ‘Telugu’s not easy’ Chiranjeevi’s assurance changed the equation The Telangana Film Chamber of Commerce Secretary confirmed that Chiranjeevi personally assured exhibitors that their long-pending issues would be resolved soon. “We will stand by Chiranjeevi garu’s word. He promised that a solution to the percentage issue would be found before June 30,” the secretary said. Chiranjeevi has committed to personally monitoring and overseeing the meetings and outcomes of the Sub-Committee formed by the Executive Committee of the Telugu Film Chamber of Commerce to ensure the new percentage system is finalised within the agreed timeframe. The deadline set is June 30.Story continues below this ad A new era from July 3 The most significant takeaway from the press note is not just the resolution around P