23 Telangana Single Screens Ditch Rental Model for Revenue Sharing from April 2026

The exhibition landscape in Telangana is about to witness a significant shift as 23 single-screen theatres prepare to abandon the traditional rental model in favor of a percentage-based revenue sharing system starting April 3, 2026.

This transition, formalized through a circular from the Telangana State Film Chamber of Commerce, represents more than just an accounting change: it's a survival strategy for single screens that have been struggling under mounting operational pressures. The new model offers a sliding scale: 60% share for the opening week, 50% for the second week, and 40% from the third week onwards, with films continuing based on their performance trajectory.

What makes this development particularly noteworthy is the widespread buy-in from distributors, suggesting the rental model's limitations have become increasingly apparent to all stakeholders. Theatre owners have been vocal about rising operational costs making fixed rental commitments unsustainable, especially when films underperform at the box office.

The 23 theatres span across key areas of Hyderabad and its surroundings, from Hitech Theatre in Madhapur to establishments in Kukatpally, Amberpet, and Uppal. These aren't fringe locations: many serve catchment areas with strong theatrical footfall, making their collective decision all the more significant.

This shift could herald a broader transformation in how single screens operate across Telugu states. If the model proves successful in managing costs while maintaining regular programming, expect more theatre owners to follow suit. For producers and distributors, it means sharing more risk but also potentially better cooperation from exhibitors in terms of show timings and screen allocation.

The timing is crucial too: as the industry continues navigating post-pandemic recovery and OTT competition, this flexible approach might be exactly what single screens need to remain viable. Rather than betting everything on fixed rental commitments, both parties now have skin in the game based on actual performance.

Whether this becomes the new normal for single-screen exhibition will depend largely on how these 23 pioneers fare over the coming months.