Just days before Peddi arrives in theatres, a fresh conflict inside the Telugu film industry is suddenly creating tension around the movie’s release in Telangana. What should have been a smooth countdown for Ram Charan and Janhvi Kapoor’s big sports drama has now turned into a heated fight between exhibitors and producers over revenue-sharing rules, ticket pricing, and the future survival of single-screen theatres.
For the past several weeks, exhibitors in Telangana have been demanding a complete shift away from the current rental-based system. Instead, they want a percentage-sharing model where theatres receive a direct share of a film’s earnings, similar to the arrangement already used with multiplex chains. According to members of the Telangana Exhibitors Association, smaller theatres are struggling badly under the existing structure, especially as theatrical runs for most films have become shorter in the streaming era.
Association president Vijayender Reddy reportedly made it very clear that exhibitors no longer support ticket price hikes in Telangana and want financial reforms implemented immediately. More than 180 exhibitors are said to be backing the demand, and many believe Peddi should become the first major release under the new revenue-sharing model. Theatre owners argue that if changes keep getting delayed, many single-screen cinemas in smaller towns could eventually shut down completely.
Another issue raising tension is the proposed grading system for single-screen theatres, which exhibitors also oppose. Industry insiders say the disagreement has been building quietly since discussions around Hari Hara Veera Mallu last year, but now the conflict has become impossible to ignore because Peddi is such a major release heading into theatres.
Producers Say An Agreement Already Exists
After exhibitors publicly addressed the media, veteran producer Daggubati Suresh Babu responded through an official communication on behalf of the Telugu Film Chamber of Commerce. According to the producers’ side, meetings already took place earlier this month involving producers, exhibitors, and distributors, where a subcommittee was formed specifically to discuss a future percentage-sharing system.
The producers claim both sides had already agreed that Peddi would release without disruption while broader negotiations continued. The letter also reportedly detailed terms connected to potential ticket hikes and special premiere show payments across Andhra Pradesh and Telangana. However, exhibitors now appear unhappy with how those discussions are progressing, with some reportedly calling the situation unfair if theatres are expected to continue under old conditions without proper long-term agreements.
What makes the situation tricky is that exhibitors are not openly boycotting Peddi. They still appear willing to screen the movie, but tensions remain unresolved only days before release. If talks completely collapse, the biggest damage would likely happen in smaller towns and cities where single-screen theatres still play a major role in opening weekend collections for Telugu films.
And honestly, for a movie like Peddi, that could become a serious problem. The film already carries huge expectations because it marks another ambitious large-scale project for Ram Charan after the global attention he received from RRR. Directed by Buchi Babu Sana, the sports drama also stars Shiva Rajkumar, Jagapathi Babu, and Divyenndu in major roles, while music by A. R. Rahman has already generated strong buzz online.
With release day getting dangerously close, the Telugu industry now seems to be waiting nervously to see whether both sides can settle things before the conflict starts affecting screens, show counts, and ultimately the film’s box office opening.
