The Multiplex Association of India (MAI) has requested all studios, producers, artistes and other content creators to hold release of their films until theatres open up again. With theatres being shut since for over a month now, many small and mid-rung production houses are understood to be in talks with video over-the-top (OTT) platforms for direct-to-digital launch of their unreleased movies.
The association has urged all stakeholders to “respect the exclusive theatrical window”, which has been an industry practice not just in India but also globally. “When this crisis passes, the combination of the pent-up demand and the promise of new movies would boost film business and contribute massively in reviving our industry,” the MAI said.
Experts estimate the film industry (Hindi) to have lost close to Rs 1,500 crore in revenues in the one month to April. Of this, revenue loss from box office collections would be anywhere between Rs 600 crore and Rs 700 crore.
Revenue generated from the sale of movie tickets is shared by film exhibitors, distributors and production companies. An industry executive, on condition of anonymity, said film exhibitors get the lion’s share of revenue from ticket sales — anywhere between 50% and 60% on an average.
Distributors get the remaining share and they give a certain percentage from their kitty to the production companies, depending on the terms of their equation.