Producers strike cost Bollywood Rs.3 bn
The two-month-long standoff between the producers-distributors and multiplex owners over revenue sharing, which was resolved on Friday, has led to a whopping Rs.300 crore (Rs.3 billion) loss to the industry.Updated: Jun 08, 2009, 15:22 IST
The two-month-long standoff between the producers-distributors and multiplex owners over revenue sharing, which was resolved Friday, has led to a whopping Rs.300 crore (Rs.3 billion) loss to the industry.
"The strike has cost the Indian film industry over Rs.3 billion," Mukesh Bhatt, United Producers and Distributors Forum (UPDF) chairman, told IANS over phone from Mumbai Friday.
The standoff between producers-distributors and multiplex owners started in February over revenue sharing. While the producers demanded a flat 50 percent share of all film revenues irrespective of the stars, budget and box office collection, the exhibitors stressed on sharing profits based on the earnings of a film.
As a result the producers declared a strike April 4 onwards, which saw no new releases of Bollywood films in multiplexes across the country.
The strike came to an end Friday morning after the two parties agreed on new format of revenue sharing.
According to the final settlement, 50, 42, 35 and 30 per cent for the first, second, third and fourth week respectively for all movies will be shared between the two parties.
The strike has also affected auxiliary industries like hoardings and advertising. They are said to have suffered an estimated loss of Rs.100 crore (Rs.1 billion).
The combined fixed cost losses - rent, salary, electricity bills - for all multiplexes for the first quarter (April-June) is expected to be around Rs.140 crore, said industry sources.