Peddi producer claims revenue model decisions about film were taken without his knowledge as it grosses ₹300 crore

DAys before the give up of Buchi baboo sana'a’s ram down Charan and Janhvi Kapoor-starrer Peddi on June 4, the exhibitors and producers of Tollywood were feuding o'er the revenue model of films. The Telangana Exhibitors Association stood firm on percentage-sharing for all future releases, but the Telugu Film Chamber of Commerce (TFCC) wanted time. Now, two weeks after the film’s release, producer Venkata Satish Kilaru of Vriddhi Cinemas claims decisions about the film were made without his knowledge as it grosses over ₹300 crore worldwide.What is the issue between producers and exhibitors?Exhibitors have remained firm that they will allow future Telugu films to be released only if producers agree to a percentage-sharing agreement rather than the rental basis, which is the norm now. They have also stated that film ticket prices should not be hiked.When accused of creating a fuss before Peddi’s release, the exhibitors claimed the issue was first discussed during the release of Pawan Kalyan’s Hari Hara Veera Mallu last year, but there was no progress on it. Cinema Express reported that when exhibitors, distributors and producers met Chiranjeevi to sort out the issue, he promised them that the percentage share system would soon be implemented, clearing the way for Peddi.Telugu Film Chamber of Commerce’s letter to Peddi producerIn a letter dated May 27 that has been leaked online, the TFCC informed Venkata that a meeting between producers, distributors and exhibitors was held on May 15 where it was decided on a percentage sharing system. A sub-committee was consequently formed with 21 members who discussed and approved some decisions regarding Peddi on May 26.“All the Members unanimously agreed for release of movie "PEDDI" without any hindrance. 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,” reads a portion of the letter.The letter also stated that the above model will apply to Telangana if the price is hiked. It also mentioned that the new percentage system will be decided before the next big release or by the end of June. Peddi’s producer was asked to follow the model as the AP government had permitted ticket hikes for the film.Peddi producer claims decisions were made without his knowledgeIn a letter dated June 13, also leaked online, sent to the TFCC by the producer, he stated that he wasn’t present at the May 15 meeting. Venkata also claimed that he hadn’t received an intimation or invitation from the trade body to attend the meeting regarding Peddi. He mentioned that ‘certain decisions’ were taken without his ‘knowledge and participation.’Venkata mentioned that in an earlier meeting he attended, he informed the members that Peddi had already been sold to distributors and that the proposed sharing system wasn’t acceptable. “By the copy of your above letter received recently from a few of our distributors, we came to understand that certain instructions/decisions have been taken unilaterally. Without considering the facts and without giving us an opportunity to place our views. We are therefore not in a position to accept the same,” read a portion of his letter.The producer also mentioned that Peddi is performing well at the box office, but the agreements between distributors and exhibitors have already been finalised. “Any unilateral decision at this stage would cause serious financial and commercial difficulties to all the parties involved,” he wrote in the letter.According to the trade website Sacnilk, Peddi has grossed ₹317.12 crore worldwide in 14 days of its release. The filmmakers claim that it grossed ₹393 crore worldwide in 11 days.