Telugu Film Producers’ Council (TFPC) has taken a decision that all exhibitors (theatre owners) should share profits as per the occupancy ratio profit sharing basis from November 15 onwards keeping mainly the interests of small film producers in mind.Though it is good for small producers , but theater owners many not go for small film release. At the same time big producers many suffer loss due to sharing their profits with theater owners.
In this occupancy ratio formula, the producers will not have to pay rent to exhibitors. If this new rule is implemented, it is the small film producer who stands to benefit however, will be a disadvantage for the theatre owner.
As of now, the theatre owners are playing it safe with small films. They rent out the theatre to the producer and even if the producer suffers a loss, the theatre owner is spared as he gets his rent. On the other hand, producers of big budget films are more comfortable with the idea of paying rent instead of sharing any profit depending on occupancy. They pay a fixed amount as rent and if the film does well, which is assured for at least for a couple of weeks, the producers keep all the profits. For this reason, the new rule that the TFPC is trying to enforce from November 15 will not be acceptable to big budget film producers.