Producer-multiplex revenue sharing talks end in stalemate
A Bollywood film producers and multiplex owners meeting ended in a deadlock over revenue sharing row. The two parties failed to reach a mutual understanding over the rationalisation of revenue sharing of films, according to industry insiders.entertainment Updated: May 07, 2009 15:32 IST
A Bollywood film producers and multiplex owners meeting on Tuesday ended in a deadlock over revenue sharing row.
The two parties failed to reach a mutual understanding over the rationalisation of revenue sharing of films, according to industry insiders.
The issue started in February when producers demanded a 50 per cent revenue share for all films. The multiplexes refused the demand but in later talks agreed to give 50, 40 and 30 per cent revenue during subsequent weeks after the release day.
The United Producers and Distributors Forum (UPDF) declared early March not to push any new film in multiplexes April 4 onwards.
"The talks have stalled as multiplex (owners) are not willing to come up with more than the 50-40-30 ratio and are rigid on their stand. We are now formalising a plan to release all new films in single screens and independent multiplexes across the country," Mukesh Bhatt, the spokesperson for UPDF, told IANS over phone from Mumbai.
"We will even come out with the plan in the next 15 days," he added.
An industry insider, who was present at the meeting, said: "Multiplexes are not willing to budge. Despite that, we (producers-distributors) are willing to come down from 50 percent.
"They (multiplex owner) said the 50-40-30 weekly ratio is the best they can do and didn't come up... we are now not going to reschedule any meets," said the insider, pleading anonymity.
Production houses, like UTV Motion Pictures which also has a distribution arm, have decided to release their forthcoming films like Kaminay, Kisan and Main Aur Mrs. Khanna in single screen theatres.
"Since there is no resolution on the national chain of multiplex issue, UTV will proceed to start releasing its big and small movies in single screen theaters and non-national chain multiplexes nationwide July onwards," Siddharth Roy Kapur, CEO UTV Motion Pictures, said in a statement.
A precursor was laid to the Tuesday meeting April 29 when talks between the producers and multiplex owners ended on a "no result but positive" note.
Only two big budget movies have hit the screens since the row - Neil Nitin Mukesh starring Aa Dekhen Zara and Akshay Kumar starring 8X10 Tasveer.
While, the former was released only in single screens March 27, the latter was released April 3, a day before the strike, in multiplexes.
Aa Dekhen... missed all the buzz, Tasveer proved to be a dud.