MUMBAI: After a marathon meeting that lasted almost 15 hours, the Hindi film producers and distributors have finally reached common ground and amiably so. The two month long strike has ended and new Hindi films will start releasing in all national multiplex chains from 12 June.
The meeting that was held at Yash Raj Studios between the two parties got over at almost 2.30 am (5 June) and had good news in store for the industry by the end of it.
At the day-long meeting, BIG Cinemas was the first to sign the deal with the producers on the terms that were put forth by Reliance BIG Entertainment chairman Amit Khanna. While sources inform Businessofcinema.com that the other multiplex chains were not in agreement with the terms initially; they finally gave in and signed the same terms at the fag end of the day.
The terms that have been amiably agreed upon by all national multiplex chains are: 50, 42.5, 37.5 and 30 for the first four weeks respectively for all movies irrespective of the budget, star cast etc. In case a movie collects more than Rs 17.50 crores (nett) at the top six multiplex chains (excluding single screens and independent multiplex chains collections), then the terms will be as follows: 52.5:48, 45:55, 38:62 and 30:70 (up by 2.5 per cent for the first two weeks). However, if a film released with more than 500 prints collects less than Rs 10 crores across multiplexes, a rebate of 2.5 per cent for the second and third week will be given to the plexes by the producers & distributors. The net box office collections figure of Rs 17.50 crores will be reviewed every six months.
With regards to the distribution strategy of films, which was also a major bone of contention between the two parties, it was decided that it would be the producers who will be the decision makers on the same. Other finer details were also sorted out and settled between the two parties.
As was reported by Businessofcinema.com, Khanna has been in back to back meetings with the producers and multiplexes over the last 10 days in order to end the strike.
The first movie to hit screens on 12 June will be Vashu Bhagnani’s Kal Kissne Dekha, which is co-produced by BIG Pictures. Pertinent to note here is that even before the issue was resolved tonight, hoardings of Kal Kissne Dekha with the message – ‘Releasing on 12 June in single screens and multiplexes’ were spotted in the Andheri suburb of Mumbai as early as 7.30 pm… even as the meeting was still underway!
All said and done…. the ‘industrywallas’ can all heave a sigh of relief…. FINALLY!