New Delhi, June 4 -- The Telugu film industry may have avoided a strike by single-screen theatres this month across Andhra Pradesh and Telangana, but the issue is far from resolved. Single-screen cinemas are pushing for a shift from the minimum guarantee (MG) or rental-based model to a percentage-sharing arrangement, like the one enjoyed by multiplexes.

Currently, single screens not only have to pay MGs to play films but also take home a meagre 10% of the box office, while multiplexes retain around 50%, with the larger chunk still going to distributors.

This issue is especially crucial in the south, where single-screen theatres continue to operate in large numbers-unlike in the northern states-and drive substantial box office earnings....