Aditya N
Aditya N
The movie distribution landscape in Telangana State is set to undergo a significant transformation following the resolution passed by the Telangana State Film Chamber of Commerce. Effective from July 1, 2024, exhibitors will now operate on a percentage basis, marking a departure from the existing system. The Nizam region has already embraced this new approach, and it will only be a matter of time before it is adopted in Andhra. This development is poised to bring about substantial changes in the way movies are distributed in the region.
This alteration in the distribution model has the potential to benefit films of various success levels, from average to hits. However, it may pose a challenge for superhit to blockbuster movies. Despite this, exhibitors are generally optimistic about this change. The Executive Producer and producers now need to be cautious when considering ticket price increases, as 25% of the raised price will be allocated to the exhibitors.
For example, let’s consider a scenario where the ticket price for a show is 145 INR, and the theater’s net income is 1 lakh INR. In this case, the exhibitor would receive 25,000 INR, while the distributor would receive 75,000 INR. However, if the ticket price is increased to 200 INR and the net income per show becomes 2 lakh INR, the distributor’s share would decrease to 1.5 lakh INR. Additionally, there is a potential risk of lower occupancy due to the higher ticket price. Let us wait and watch how this change in the distribution system in Nizam brings a difference in the business of movies.
