The blaze started around 2 AM inside Durga Cinema hall at Dowleswaram village due to a short circuit, police said.
Soon the flames spread and engulfed the adjoining hutment, where the victims were fast asleep.
T Muthayala Rao's family comprising wife T Murthamma (40), T Sri Lakshmi (20), T Vasantha (23) Srivani (4) and Greshmi (3) were killed in the fire, while he escaped death.
The fire was doused in four hours after extinguishers were pressed into service.
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