AP CM YS Jagan has been creating a hostile atmosphere for Tollywood for a while now. First, it was the unreasonably low cinema ticket prices. Now, it’s a new set of rules related to online cinema ticketing in the state.
The latest updates are suggesting that the theaters in the Godavari districts are likely to shut operations from the 1st of July in view of the recent MOUs sent to them by AP government.
In the new MOUs, the government stated that all the theatrical revenue in AP will be directly taken into government account and it will later by credited in the accounts of distributors post service charge deduction.
Theater managements and exhibitors are in a spot of great bother as they have already signed agreements with Book My Show and Paytm regarding ticket sales. Now, if the government insists to take the revenues into their accounts, it will revoke the agreement with Book My Show and Paytm, and they will have to return the huge advances they received from these ticketing portals.
Exhibitors and theater owners say that the government’s unclear set of rules and methodology put the entire theatrical ecosystem at great risk. Meanwhile, the government is pressurising theater owners, saying their licences will be revoked if they don’t sign the MOUs by the end of this month.
It is reported that all the theaters in Godavari districts, barring the ones screening 1st July release, Pakka Commercial are set to shut operations. There’s no official update in this regard though. It should be seen how Tollywood handles the new headache created by Jagan’s government.