MUMBAI: The latest twist in the tale on the deadlock between producers, distributors and national multiplex chains is that after days and days of negotiations, multiplexes are sticking to their proposal of performance based revenue share for movies.
As was reported by Businessofcinema.com yesterday, an internal meeting is currently underway between exhibitors and Reliance BIG Entertainment chairman Amit Khanna. Sources inform that, a three tier performance based revenue sharing terms formula is being proposed to Khanna by other multiplexes.
This is as follows:
i) Small budget movies: 48:52, 38:62 (producers:multiplexes)
ii) Medium budget movies: 50:50, 42:58
iii) Big budget movies: 52:48, 42:58
These terms that are being put forth by multiplexes will be decided upon after a movie has released theatrically.
While talks have progressed between BIG Cinemas and the United Producers and Distributors’ Forum, wherein a consensus may be reached today (4 June); the fact of the matter is that other multiplex chains are not in agreement with the terms that BIG has agreed to.
BIG Cinemas has agreed to the terms of 50, 42.5, 37.5 and 30 for the first four weeks respectively for all movies. Additionally, if a movie grosses more than Rs 17.50 crores 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.
A source says, "Even if the terms are mutually agreed upon by the multiplexes and producers, there still remains the problem of distribution strategy for movies. It will still take some time to reach mutually agreeable terms."
On the other hand, according to information available with Businessofcinema.com, the UPDF is not open to any other terms or conditions that the multiplexes may offer other than the ones that have been agreed upon by BIG Cinemas.
For the time being, the status of the film strike solely depends on how the meeting between exhibitors and Khanna progresses.
