Problems pertaining to profit sharing between multiplexes and film producers as well as distributors have always been a cause of concern before the release of any Hindi film. Discrepancy between these three entities has often caused delay in the release dates of some films. To tackle this hurdle, the Indian Producers and Distributors Forum has decided to suspend all marketing and distribution of all new films set to release from April 4, this year onwards.
The production and distribution houses have asked the multiplexes for an equality in revenue sharing (50:50 share) in terms of every film, regardless of the star cast or budget for every week a film plays in the multiplexes. So far, producers claim that they have encouraged the setting up and growth of multiplexes in the country by providing content to multiplexes without following a set of revenue sharing pattern. The revenue sharing model is ad hoc and this is dictated by multiplexes on producers/distributors. Multiplexes only share the revenue generated from ticket sales with the producer/distributor of a film.
Film maker Mukesh Bhatt said, ?Multiplexes get content free of cost without any risks attached for the exhibition of the film. The multiplexes earn 25% of their revenue from canteen sales, 15% from car parking facilities and 8% from advertisements, which the multiplexes do not have to account for to the producers. Since the past one month, we are in talking terms with the multiplexes on this issue of equal sharing of revenue, but there seems to be no effect on them.?
On being contacted, Devang Sampat, senior vice-president, Cinemax India Ltd said, ?We are currently in talking terms with the other multiplex players and cannot comment on the steps to be taken by us.?
However, an official from a leading multiplex said, ?This decision of the new profit sharing norms is not fair, since the multiplex market in India is still not developed. We still have to invest in maintaining and providing better movie experience to the viewers. This decision has conveniently come in at a time when the releases of many big budget films were being pushed back due to the IPL matches and so there is very little chance of films losing revenue from this decision.?
Curtains down?
•Production and distribution houses ask multiplexes for a 50:50 revenue sharing in terms of every film, regardless of the star cast or budget for every week a film plays in the multiplexes
• Multiplexes only share the revenue generated from ticket sales with the producer/distributor of a film