In response to the recent decision by Telangana theater owners to freeze ticket prices, top movie producers have issued a strong statement. Here is a detailed summary of the situation in simple English:
- The Producers’ Stance: Major film producers have countered the theater owners (exhibitors), arguing that flexible ticket pricing is essential for the survival of big-budget cinema. They believe that for “event films” with massive costs, higher ticket rates during the first week are necessary to recover investments.
- The Problem with a Fixed Price: Producers pointed out that if ticket prices are kept very low for every movie, it becomes impossible to produce high-quality films with top stars and advanced visual effects. They argue that the current system allows for “premium” prices for big movies and lower prices for smaller ones.
- Financial Risks: The producers mentioned that they take the biggest financial risks in the industry. While theater owners face high maintenance costs, producers often lose crores of rupees if a film does not perform well at the box office.
- Sharing the Revenue: Regarding the theater owners’ demand for a “percentage sharing system” (like multiplexes), producers expressed concerns. They argued that until there is a fully transparent and digital system to track every ticket sold in single screens, a percentage-based model is difficult to implement fairly.
- A Call for Dialogue: Instead of making one-sided decisions, the producers are calling for a joint meeting between the Producers’ Council and the Exhibitors’ Association. They believe that both sides need to work together to find a solution that helps theaters stay open without hurting the producers’ ability to make big movies.
- Market Reality: The producers also noted that audiences are willing to pay more for a “theatrical experience” if the content is great, but they agree that prices should return to normal rates after the initial opening weekend to stay affordable for everyone.