Andhra Pradesh’s single-screen cinema exhibitors are facing a severe financial crisis and have appealed to the State government for a bailout package. The Andhra Pradesh Film Chamber of Commerce (APFCC) has highlighted the struggles of these theatres, many of which are on the brink of closure.
Key issues contributing to the crisis include the impact of the COVID-19 pandemic, the rise of Over-The-Top (OTT) platforms, and a recent increase in ticket prices coupled with high GST rates. Exhibitors claim that despite increased ticket prices, revenue hasn’t improved sufficiently due to reduced footfall. The GST rate of 18% on ticket prices above ₹100 is a significant burden.
The APFCC estimates that over 600 single-screen theatres across the state are struggling, with many unable to cover operational costs like electricity bills and employee salaries. They point to the disparity in ticket pricing between single-screen theatres and multiplexes, arguing that the latter enjoy preferential treatment.
Specifically, the exhibitors are requesting the government to consider measures such as waiving electricity charges, reducing GST on ticket prices, and providing financial assistance to help them upgrade their facilities. They also suggest a re-evaluation of the online ticketing system, alleging commissions charged by these platforms are excessively high and further erode their profits.
The exhibitors argue that single-screen theatres play a vital role in providing affordable entertainment, particularly in rural areas, and their closure would negatively impact the film industry and local economies. They emphasize the cultural significance of these theatres and their contribution to employment. The APFCC has warned that without government intervention, a large number of single-screen theatres will be forced to shut down, leading to job losses and a decline in the overall film exhibition sector in Andhra Pradesh. They have submitted a detailed representation to the government outlining their concerns and proposed solutions.
