It is a war in which both the sides — multiplex owners and producers/ distributors — admit that they can’t afford to lose and don’t want to accept anything less than a victory. And the money at stake is huge even by conservative estimates — Rs 100 crore each by both the sides per month.

While producers/distributors who have stopped their film releases in swanky multiplexes believe that they should be paid what is their rightful due, exhibitors — many owned by corporate houses and even listed on the stock exchanges — say that the 50:50 revenue sharing model (as against 55:45 in favour of exhibitors now) being prescribed by the former is not sustainable. “If filmmakers refuse to provide us content then there isn't any way that we can be in business. Similarly they can’t sustain and survive the 60 per cent revenue loss per film if they do not release their films in multiplexes,” said Vishal Kapur, chief operating officer, Fun Cinemas.

“We are trying to reason it out with distributors as data from different countries like the US and the UK prove that revenue sharing on the basis of performance of a movie works pretty well. The flat revenue sharing model is simply unsustainable,” said Kapur. There are 850 multiplex screens in the country that generate 60 per cent revenues for the film industry. Multiplex ticket prices are double when compared to normal single theatres. Multiplex owners say that audiences will have to pay a higher price as it includes the price of infrastructure and the cost of development of the property.

... contd.