Multiplexes, Warner Bros tiff over
Warner Bros Pictures India and theatres have ended their stalemate and Harry Potter and the Dealthly Hallows: Part 2 is now releasing in multiplexes. The two parties were fighting over profit sharing. Special: Harry Potterbollywood Updated: Jul 15, 2011 14:25 IST
Warner Brothers and Indian multiplexes reached a consensus well before the release of Harry Potter and the Dealthly Hallows: Part 2. The studio has at last conceded to the demand of multiplex owners.
The two parties were fighting over profit sharing ratio of the film. While multiplexes were demanding 55% share, Warner Brothers wanted 50% share in profits.
An MoU was signed last year regarding the revenue sharing pattern between distributors and multiplexes. According to the agreement, the ratio was 50:50 in the first week, which would then be reduced to 42.5% in the second week, followed by 37.5% in the third week and 30% in the fourth week.
Cinemax CEO Sunil Punjabi told indiantelevision.com: "They (studio) have finally given in. Though I can't give you the figure right now, all I can say is that the decision has gone in favour of the multiplexes. We are going to show the film."
According to Warner Brothers, multiplexes never asked for a raise in share during the release of Transformers.
Punjabi clarified to the site, "Transformers released on 29 June when the MoU was still effective; it expired only on 30 June. While we were about to talk to various Hollywood studios about our demands, the Harry Potter and the Deathly Hallows: Part 2 issue cropped up."
All's well that ends well.