Will the rift between exhibitors and producers in Telangana affect Ram Charan-Janhvi Kapoor's Peddi? Explained

The Telangana Exhibitors Association remains firm on allowing films to release only on a percentage-sharing basis, rather than on a rental basis, for Peddi.

Days before the release of Buchi Babu Sana’s Ram Charan and Janhvi Kapoor-starrer Peddi on June 4, terms between the exhibitors and producers in Telangana seem to reach a stalemate. Even as the Telangana Exhibitors Association stays firm on percentage-sharing for all future releases, the Telugu Film Chamber of Commerce reminds them otherwise. Explaining how and if this rift will affect Peddi.

Shruti Haasan, Ram Charan and Janhvi Kapoor in a still from the song Hellallallo in Peddi.

What do the exhibitors want?

For weeks now, Telangana exhibitors have remained firm that they will allow future Telugu films to release only if producers agree to a percentage-sharing agreement instead of the rental basis, which is the norm now. Association president Vijayender Reddy also made it clear that there will be no more ticket hikes in Telangana. Over 180 exhibitors stand firm that changes must come, starting with the release of Peddi. Producers are already sharing revenue with multiplex chains, so why avoid extending the same to them, was their question.

“We are against a ticket price hike in Telangana. We have already submitted a letter to Chief Minister A Revanth Reddy, the Telugu Film Chamber of Commerce and the Exhibitors Association, requesting that ticket prices should not be increased,” said Vijayender. Sridhar, secretary of the Telangana Film Chamber of Commerce, claimed that the issue was first discussed during the release of Pawan Kalyan’s Hari Hara Veera Mallu last year. “If we continue to delay, many single-screen theatres may shut down,” he said, stating that the exhibitors are firm on releasing films only under the new model.

Apart from announcing to the press that the revenue-sharing model is in effect from Saturday and that they oppose ticket hikes, the exhibitors also object to the proposed system to grade single screens. Sridhar also mentioned that even when a film becomes a hit, it runs in theatres for only about a week.

What do the producers say?

After the exhibitors held a press conference on Saturday, producer Daggubati Suresh Babu sent a letter to the Telangana Film Chamber of Commerce on behalf of the Telugu Film Chamber of Commerce. “This is to inform you that in the meeting of the Producers, Exhibitors and Distributors held on 15-05-2026, a Sub Committee was formed to decide on a percentage system for the Exhibitors. The said Sub Committee has held a couple of meetings and has agreed on the following points,” reads a portion of his letter.

Reiterating that it was agreed to release Peddi without hindrance with terms for ticket hikes, he wrote, “For Andhra Pradesh - If there is any enhancement of the tickets for the movie "PEDDI", 7.5% (seven and half percent) would be paid. For Premier Shows - per show, the payment will be made as detailed below: Rs.25,000/- for "A" Center, Rs.15,000/- for "B" Center and Rs.5,000/- for "C" Center.”

He also added, “For Telangana, the above will be applicable in case ticket price is hiked. If there is no ticket hike, they will discuss, as usual, with the distributors and settle mutually. The Producers, Distributors and Exhibitors agreed for implementation of percentage system. The new percentage system will be decided before the next big release or the end of June, 2026, upon all the conditions submitted by Producers to be discussed and agreed with time lines.”

What does this mean for Peddi?

Given that the exhibitors have called it ‘unfair’ if terms are not reached and Peddi is not exhibited in single screens, they are not against screening the film. However, it seems the exhibitors and producers have reached a stalemate, despite having agreed on May 15. With only a few days left for the release of Peddi, it remains to be seen if they reach a satisfactory agreement. If the stand-off continues, the film will lose single screens in cities and small towns, denting its openings and box office performance.

Peddi is a sports drama starring Ram and Janhvi in lead roles. It also stars Shiva Rajkumar, Jagapathi Babu and Divyenndu.