Peddi Producer Percentage Sharing Without His Knowledge Ram Charan Janhvi Kapoor Film Grosses 300 Crore

Days before the release of Buchi Babu Sana’s Ram Charan and Janhvi Kapoor-starrer Peddi on June 4, the exhibitors and producers of Tollywood were feuding over 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.

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.

In 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.

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.

In 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 13 days of its release. The filmmakers claim that it grossed ₹400 crore worldwide in 14 days.

Despite having a Master's degree in Journalism and over a decade of experience in print and digital media as a field reporter and sub-editor at organisations such as The Times of India and Reader's Digest, Neeshita Nyayapati remains a movie buff first and a Chief Content Producer second. She fell in love with movies in childhood and believes nothing matches the magic of watching a good film that moves you with a warm tub of popcorn in hand. Her love for writing about cinema follows that. Come Friday, you'll find her at her happy place, the movies, catching the latest rom-com or masala offering, for reviews or otherwise. As for the rest of the week, she's here reporting the juiciest news in Telugu, Tamil, Malayalam, Kannada and Hindi or bringing out the best of celebs in interviews. While her niche is Telugu cinema, Neeshita likes to dabble in a little bit of everything to stay up to date. From film announcements to scandals and hard news angles, she has explored it all. A good book, a comforting cup of hot chocolate, puppy kisses and a stunning beach view are all she needs to unwind. Her passion for biking and travelling has taken her to various places across the country. She has found peace in everything from the frozen lakes of Gangtok to the coffee plantations of Coorg and the dense forests of Bandipur, to the monasteries of Darjeeling. But no matter where she goes, Neeshita loves coming across inspiring and moving stories.Read More