Satyanarayana, the popular film distributor and a prominent figure in the Telugu film industry business, spoke exclusively to GreatAndhra.com about the deteriorating state of theatres and the challenges faced by exhibitors in today’s changing entertainment landscape.
Recalling the past, Satyanarayana said, “It was the percentage system before the 1980s, and all stakeholders — producers, distributors, and exhibitors — were happy. Even when the slab and rental system came side-by-side, things worked because audiences used to flock to theatres. Big stars used to do 4–10 films a year. Theatres were always bustling with activity and business.”
However, he noted a sharp decline in theatre footfall and viability in recent years, especially after the rise of the pan-India film model.
“Now, top heroes are getting locked into one film for 2–3 years. Mid-range and small-time actors are also trying to follow that path. The overall output has reduced drastically,” he lamented.
The situation worsened after the COVID-19 pandemic, with OTT platforms becoming a strong alternative for audiences.
“People got used to watching content at home. Exhibitors have become used to shutting down theatres when there are no films worth screening, as audiences just don’t turn up anymore,” he explained.
Satyanarayana also raised concerns about the financial strain on theatre owners under the current rental model.
“Except for big heroes and their producers, no exhibitor is making money with the rental system. To at least recover from the losses of low-performing films, exhibitors should be allowed to earn from the success of big films through the percentage system — just like multiplexes do.”
He urged the industry to consider a fairer revenue-sharing model to ensure the survival of traditional cinema halls and the people who run them.
“If this doesn’t change, the exhibition sector may continue to shrink, impacting the entire ecosystem of Telugu cinema,” he warned.
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