Multiplexes hold out in producers’ strike
The standoff between multiplex owners and movie producers over sharing of revenues worsened as a producer-distributor strike entered its 13th day on Thursday, hitting the entertainment industry hard.business Updated: Apr 16, 2009 23:11 IST
No show, no go.
The standoff between multiplex owners and movie producers over sharing of revenues worsened as a producer-distributor strike entered its 13th day on Thursday, hitting the entertainment industry hard.
The strike is being pushed by the United Producers and Distributors Forum of Mumbai’s Hindi-centric film industry.
The producers are demanding a flat 50:50 revenue sharing between them and the multiplex owners while the latter are not yielding.
There are about 750 multiplex screens in India.
The losses for multiplex owners depend on the success and scale of a movie, and is estimated in the range of Rs 5 to Rs 6 crore per week .
Siddharth Roy Kapur, CEO, UTV Motion Pictures said producers had so far been getting 48, 38 and 30 per cent shares, respectively, in the first three weeks of a newly released movie.
“This would sometimes vary to 45, 35 and 30 per cent and lately the multiplexes had started offering even lower terms than this,” Kapur said.
On an average, he said that the distributor’s share came to about 41-42 per cent of the net collections through the entire run of the movie.
None of the multiplex owners that Hindustan Times contacted, including Fame India’s managing director Shravan Shroff, PVR Ltd’s chairman and managing director Ajay Bijli and Cinemax India’s chairman Rasesh Kanakia, were willing to talk about the issue.
Multiplex owners such as PVR, Fame and Cinemax are clearly losing out as their screens have been going blank. Although they can show regional and foreign language movies, the loss from not being able to show Hindi movies is a big blow to them.