After Deputy CM Pawan Kalyan took a serious stand against Tollywood, followed by a strongly worded press note that sounded almost like a warning, the exhibitors who were complaining about the dry state of theaters and their bandh call have suddenly shifted in a different direction.
Instead of discussing the real problems, everyone now seems to be focused on Pawan Kalyan himself and the long-delayed Hari Hara Veera Mallu.
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Meanwhile, producer Allu Aravind held a press meet to clarify that he has no involvement in Aa Naluguru, distancing himself from that protest.
During the press meet, an M9 News reporter asked a question that has since sparked debate within the trade circles:
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“Right now, the biggest issue for theatres is VPF charges. You’re reportedly a partner in QUBE, while Suresh Babu is said to be involved with UFO. There are allegations that you both are enforcing these VPF collections.”
Allu Aravind responded, denying any partnership with QUBE.
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Allu Aravind to M9 News
QUBE లో నేను పార్టనర్ కాదు, UFO సురేష్ బాబు చేతుల్లో లేదు
Will the Exhibitors & Distributors Buy This Statement?#TheatersStrike pic.twitter.com/TyQMXhQrAz
— M9 NEWS (@M9News_) May 25, 2025
He also stated that Suresh Babu has nothing to do with UFO either.
Technically, that’s true. Neither of them are official “partners.” But they are license holders for the Telugu states — which effectively gives them operational control.
Post the press meet, the M9 News reporter followed up off the record, asking: “Even if you’re a license holder, shouldn’t you still take some responsibility to reduce these rates?”
Aravind’s response: “You’ll have to ask the owners. I can give you their numbers.”
Let’s rewind a bit.
During Magadheera’s time, digital projection entered Telugu cinema. Back then, it was promoted to theatres as a cost-effective alternative to physical prints, which used to cost upwards of ₹60,000–₹70,000 per film.
The catch? Instead of a one-time installation fee, digital projector providers started charging projector rentals and weekly VPF (Virtual Print Fee) — ₹10,000 to ₹13,500 per film.
The problem?
Many C-centre theatres couldn’t even recover these amounts from ticket sales. Distributors began skipping these centres, which led to multiple theatres shutting down.
Even if the print cost 60,000-70,000, they would distribute the same print to many theaters. Once a bunch of theaters were done, they used to give the same print to another bunch and run it for 100 days. This is all within 60,000-70,000 rupees cost.
However, with the advent of digital, they are collecting one lakh rupees per month from each theater. Moreover, the ad revenue that is placed in the interval for each show also belongs to those companies. That means that without ads, 150 crores are literally squeezed out of the theaters.
Now, multiplexes are another story. Even if they have their own projectors, they collect VPF as a corporate sponsorship scheme.
Worse, there’s no end in sight. While digital projectors were installed long ago, there’s been no “sunset period” for these fees. It’s become a never-ending charge under various pretexts.
Big studios like YRF and Dharma don’t pay VPF for Hindi films. They negotiate directly with digital service providers for far lower rates. But when it comes to Telugu films, distributors are still forced to pay hefty VPF charges.
Currently, QUBE operates in about 70% of theatres across the Telugu states, with UFO covering around 30%. Other smaller companies that tried to enter the market were either acquired or pushed out through pressure tactics — like being denied films for tying up with their rivals.
They say that if they give films to these small digital companies, piracy will happen. But now piracy is still happening, right? Can we assume that responsibility is with QUBE and UFO?
Recently, a new digital company called TSR entered the scene, charging only ₹10,000 plus GST per month. But theatres that install TSR face multiple hurdles. Even if the rates are high, theaters forced to stick to these two companies QUBE and CFO and suffer.
Given this reality, Allu Aravind’s claim that they are “just license holders” and “don’t set the rates” rings hollow — and honestly, disappointing.
