Multiplex owners and producers have finalised a deal on revenue-sharing and other knotty issues and are set to sign on the dotted line this week, thus ending a nearly two-month ban on Hindi film releases at multiplexes.
Sources close to the development, led by a top producer-exhibitor and a top distributor, said the deal may be signed as early as Wednesday. Multiplex owners and producers, among other issues, have been squabbling over revenue sharing, with producers demanding a 50:50 share of revenues, and multiplex-owners insisting that they will shell out a larger proportion of revenues only if the film does well and not otherwise.
But now, with 45 films waiting to be released, and Bollywood not having a good first half at the box-office, both sides are believed to have ?mutually? agreed to reach a consensus.
Though both sides are tight-lipped about details, sources said multiplex owners and producers will possibly agree to a 50:50 share in week one, a 42.5% share in week two and 35% from the third week onwards.
There have been hectic parleys in April and May between both sides with even Shah Rukh Khan and Aamir Khan joining the debate.
With pressure mounting on multiplex owners to give in to the producers? demands and a section of producers too wanting the strike, in place since April 4, to end so that they could release their films at multiplexes, the two sides met number of times in the past week to end the row.
Kishore Lulla, Chairman & CEO, Eros International, which unveiled Imtiaz Ali?s Love Aaj Kal, Sujoy Ghosh?s Aladin and Sabbir Khan?s Kambakkht Ishq, at Cannes 2009, said the deal is likely to be signed this week. Reliance Big Entertainment chairman Amit Khanna also said he couldn?t divulge details yet but pointed out that he was hopeful the impasse will end this week.
BIG Pictures is marketing and distributing Anurag Basu?s big-ticket film Kites, starring Hrithik Roshan and Mexican actress Barbara Mori. A clutch of big and small films are slated to release in the next six months, including Aamir Khan?s 3 Idiots, Shah Rukh Khan?s My Name is Khan and Akshay Kumar?s Blue.
Multiplex-owners have losses running up to Rs 100 crore in two months, say insiders, due to the strike and lack of new content.