Multiplexes take a stand on revenue share terms

MUMBAI: With every big movie release, there is the problem of revenue share between multiplexes and film distributors. While until recently multiplexes had fixed terms of revenue share, the trend of higher revenue share started with Yash Raj Films demanding more buck for their product.


However, lately with every big movie release distributors other than Yash Raj like UTV, Eros International and Studio 18 have been demanding a higher share for their content resulting in constant disagreement between the two.


The latest case in point is that of the recently released films Welcome and Taare Zameen Par. Sources inform that in order to put an end to this recurring problem, major multiplexes have combined forces and have decided that from now onwards, they will not offer a revenue share of more than 48, 40 in the first two weeks for Bombay city to any movie � no matter the banner or cast.


Additionally multiplexes have also offered the same terms for Welcome and will start screening the movie in their properties from 22 December. Studio 18, which was demanding 50, 42.5 for the first two weeks for Bombay city, had to agree to 48, 38.


Welcome released in India on 21 December in single screens and PVR multiplexes. It had to give a miss to 80 per cent multiplexes due to disagreement over revenues. Now after a loss on opening day (Friday) revenues, the movie will commence screening on Saturday.


Moreover, according to information available with, multiplexes have assured IF in the year 2008 any other movie gets higher demands than 48, 40; then Studio 18 too will get those terms for Welcome and the amount will be adjusted later.


This clearly shows that this time round, multiplexes are in no mood to negotiate and re-negotiate.

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