The chances of enjoying IPL matches on 75 mm screen is almost ruled out after Multi Screen Media Pvt Ltd (the new name of Sony Entertainment) and the major multiplex players couldn’t settle the revenue sharing arrangement. The talks fell flat when Sony refused to grant telecast rights to multiplexes for anything less than 60% of the revenue earned through screening of IPL matches, according to industry sources.
In earlier stages, Sony had insisted on charging the multiplexes around 65 to 70% of the revenue, which the industry players found difficult to concede. Additionally, the multiplex owners would have had to pay a tax on a full house for showing the event.
“Such is the tax structure, that in case of category of special events under which the IPL format falls, we have to pay taxes for a full house even if only five people turn up. After sharing 60% of revenue with Sony and paying a tax to government for full occupancy, what would we be left with?” said a source. When contacted a Sony spokesperson declined to comment on reasons that led to breakdown of talks.
The first round of talks between Sony and multiplex players had begun much before the matches were scheduled. Then Sony had demanded a minimum guarantee amount, (to the tune of Rs 50 lakh to Rs 1 crore per screen for beaming the entire IPL series throughout the season) which the multiplex owners didn’t find feasible.
Meanwhile talks between multiplex players and Yash Raj Films broke down, which led to multiplexes not releasing their movie ‘Tashan’. Faced with problem of low occupancy and the screen scheduled for `Tashan’ falling vacant, multiplex players revived talks with Sony and Novex Communications Pvt Ltd, the company with cable distribution rights for screening IPL match, to clinch the deal. “However, Sony didn’t show enough flexibility in the revenue sharing arrangement and lost an additional revenue stream,” said the source. Had the deal materialized, the tickets could have cost between Rs 250 to Rs 500.
However, at least two players are still trying to crack a last minute deal to screen the final match. But sources point out, “probably they will pay the huge amount and bear the risk, since we have a parity agreement in place for constituents of the Multiplex Association of India, under which if Sony gives a favourable deal to one of the players, the rest get entitled to it”.