Prominent producer Dil Raju today addressed recent rumors concerning a potential theater shutdown in Telugu cinema, emphatically stating that reports of theaters closing from June 1st were "wrongly communicated." Speaking to the media, Raju expressed gratitude to Andhra Pradesh Cinematography Minister Kandula Durgesh for his intervention in resolving the issue.
"My sincere thanks to Andhra Pradesh Cinematography Minister Kandula Durgesh Garu," Dil Raju began. "It's a great relief that the situation that has been ongoing for a few days has been resolved. As a producer and distributor from the Telugu film industry, I express my gratitude to him. With the Minister's statement, everything has settled down."
The Root of the Issue: Percentage vs. Rent System
Dil Raju clarified the origins of the misunderstanding, tracing it back to a meeting held on April 19th in the East Godavari district. "Some exhibitors and distributors from East Godavari district held a meeting," he explained. "Exhibitors requested a percentage-based system. Currently, the industry operates on a rent-or-percentage model. If the revenue is good in the first week, we give rent. If collections decrease in the second week, we switch to percentage. We all know that exhibitors face some difficulties with this system, and they requested a percentage model there. Distributors did not agree to this." Raju stressed that this issue was confined to East Godavari district.
He noted that the issue then seemingly coincided with the announcement of 'Hari Hara Veera Mallu's' release date, which was later postponed. The percentage problem, starting in East Godavari, then spread to the Nizam region. Raju clarified the scale of theater ownership in Nizam, stating, "Out of 370 single-screen theaters in Nizam, only 30 are with us, including SVCS. Asian and Suresh Company have 90. 250 theaters are run by owners and their associates. The media has been incorrectly writing about 'those four people,' so I am clarifying this matter."
Miscommunication and Industry Unity
Raju explained that when the percentage issue reached Telangana, local exhibitors brought it to the attention of Shirish. He acknowledged his 20-year business relationship with these exhibitors, asserting that "there is nothing wrong in exhibitors asking for what they want."
He recounted a Chamber meeting on May 18th, which he joined in the last fifteen minutes. "Without clarity on what transpired at the Chamber, the media published news that theaters would be closed from June 1st," Raju stated. "When exhibitors said they would close theaters from June 1st, I advised them against it. Everyone there agreed. They wrote a letter to the Chamber regarding the percentage issue. The essence was that if their demands weren't met, they would close. But the news that came out was 'theaters closed from June 1st.'" Raju admitted it was a mistake not to immediately deny the news about the exhibitors' decision.
Subsequent meetings were held, with distributors expressing their desire for theaters to continue operating from June 1st, and stating they would give films to whoever kept their theaters open. "Except during COVID, in my 30 years of experience, theaters have never been closed," Raju affirmed. "Exhibitors want to screen films if there are films. Closing them only harms them. As producers, we stopped shooting for 56 days but achieved nothing."
He continued, "The news of a June 1st shutdown had already spread. Then, a producers' meeting took place. All producers unanimously agreed that exhibitors had problems, and we are thinking about how to resolve them. However, we decided against closing theaters. We decided to clarify this in a joint meeting on the 24th. Meanwhile, the issue diverted towards Pawan Kalyan Garu's 'Hari Hara Veera Mallu' film."
Dil Raju adamantly refuted the notion that Pawan Kalyan's films could be stopped: "No one has the guts or courage to stop Pawan Kalyan Garu's films. I have never seen theaters close in my experience. However, the entire issue was wrongly communicated to the government."
Path Forward: Dialogue and Support from Government
Raju revealed that Minister Durgesh had spoken with him, and he had clearly explained the situation. "I told him clearly that theaters will not be closed, and this was decided in the joint meeting. I believe the government was wrongly communicated to before this."
He highlighted the upcoming film slate: "'Bhairavam' releases on May 30th, Kamal Haasan Garu's film on June 5th, Pawan Kalyan Garu's film on June 12th, and 'Kuberudu' on June 20th. This entire month is packed with films, and there are good films in July too. At this time, everyone's intention is to protect the film industry."
Raju stressed the importance of both state governments to the film industry. "The issue, which started with one person in East Godavari, was attributed to Telangana," he noted. "Both governments are very important to the film industry. Chief Minister Revanth Reddy appointed me as FDC Chairman to act as a link between the film industry and the government. The support Kalyan Garu has given to the film industry is immense. Earlier, everything felt scary, but after Kalyan Garu came, we can easily go and get ticket price hikes just by holding a paper. Our industry has been lacking unity."
Reflecting on his journey, Raju concluded, "I have a distribution office in Uttarandhra with 20 theaters. In my 30-year journey, I have grown as a producer by making good films. Even now, I am constantly thinking of new things. Recently, I established an AI company called Larven. I also recently announced Dil Raju Dreams. My intention is to use my 30 years of experience to help new talent. I am focused on making good films, moving forward positively, and helping everyone. Both governments are always positive towards the industry. Let's communicate our problems to the governments, resolve them, and move forward. I wish to put an end to this today. Thank you all."
