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Hyderabad: The ongoing clash between Tollywood producers and exhibitors has now become one of the biggest talking points in the Telugu film industry. What started as a discussion over theatre revenue sharing has slowly turned into a public war of words between top industry names.

The main issue is about the “percentage system” and “fixed rental system” followed in single-screen theatres across Telangana. Exhibitors are demanding a percentage-based revenue sharing model, saying it will help struggling theatres survive. However, many producers are opposing the idea, fearing it could reduce their earnings.

Exhibitors say hundreds of single-screen theatres have shut down in the last decade due to heavy losses, poor footfalls, and rising maintenance costs. They believe the current rental system is hurting theatre owners badly.

Asian Cinemas head Suniel Narang strongly defended the exhibitors during a recent media interaction. He said the percentage system is necessary to protect single screens.

Suniel Narang also reacted to comments made by producer Naga Vamsi during the active producers’ press meet. Without directly taking names, Naga Vamsi had mocked a “Seth Ji” who keeps building multiplexes everywhere while emotionally speaking about saving single-screen theatres.

Suniel Narang’s Reply To Naga Vamsi

Responding to those comments, Suniel Narang hit back strongly in a television interview.

“That duplicate hair fellow commented that I am constructing multiplexes everywhere. But I have also built 33 single-screen theatres. I am planning more theatres too. People should not make random comments,” he said.

His “duplicate hair” remark quickly went viral on social media and added more heat to the controversy.

What Naga Vamsi Said During Producers Meet

Naga Vamsi argued that some major exhibitors who own hundreds of multiplex screens are now suddenly talking emotionally about protecting single screens. He questioned how multiplex businesses expanded aggressively while single screens continued shutting down.

He also said producers are not completely against the percentage system. However, exhibitors should first improve facilities inside theatres, including seating, maintenance, and ticket tracking systems.

Big Producers Staying Silent

Interestingly, top producers like Allu Aravind, D. Suresh Babu, Dil Raju, and C. Ashwini Dutt have stayed away from direct public comments so far.

Industry insiders believe these senior producers are trying to solve the issue internally because many of them are connected to production, distribution, and exhibition businesses at the same time.

The controversy has also created tension around Peddi starring Ram Charan. Trade experts fear that if the issue is not resolved soon, single-screen releases and box office collections of major films could get impacted.