Hyderabad, April 27 -- Single-screen theatre owners in Telangana have reportedly threatened to shut their theatres from May 1 if the government does not implement a percentage-based revenue-sharing system by April 30. As per the latest reports, exhibitors say the current rental system, where they pay a fixed amount to distributors regardless of a film's performance, is causing heavy losses.

Losses Under Rental System

Under the rental model, theatre owners must pay distributors in advance for screening rights. This protects producers and distributors but leaves exhibitors at risk if collections are low. Single-screen theatres have struggled to compete with multiplexes for the past five years, facing declining footfall, rising operational...