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Bollywood producers, multiplex owners in dispute over revenue sharing
By Channel NewsAsia's India Correspondent Damanjeet Kohli | Posted: 20 April 2009 0031 hrs

 
 
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NEW DELHI : Movie buffs in India have had to make do without their weekly dose of new films, due to an ongoing dispute between producers and multiplex owners in Bollywood.

The release of big movies are being held back in multiplexes as producers demand a greater share of revenue.

Big producers have unanimously decided against screening their films at multiplexes.

They are against the arbitrary sharing of revenue by the multiplex owners.

Till now, the profit sharing figures for the producers have been 48 per cent for the first week and 38 per cent for the second, depending upon each movie.

But producers are now demanding a 50 per cent share from ticket sales.

Actor Aamir Khan said: "It is not only a matter of negotiation, that we want 40 per cent or 50 per cent. We also have to check the malpractices. The ticket prices vary at all places. Some theatres are charging extra tax. So there are a lot of issues that need to be ironed out."

Producers and actors are also sore that some of their movies are taken off within two to three weeks of their release.

This affects the prospects of a movie picking up business later through word of mouth.

Actor Shahrukh Khan said: "It is a fine art how you release the film. And that art should be left to the people who are making the film, and not just people who are releasing the film."

Multiplex owners, on their part, are facing problems because of the recession.

Feeling the effects of the fall in audience attendance, owners insist they will only agree to an even split if a film does well, and have urged producers to improve the quality of their films.

Vikram Sahni, producer, said: "Multiplexes have their own reasons to fight, because they have certain very high rental properties with them which they are not able to cope up with...so they have their own problems."

The first quarter of 2009 has gone by so far without a single hit movie.

And it is unlikely that the conflict between producers and multiplexes will be resolved soon.

Industry figures indicate that the strike could not have come at a worse time for India's US$2.1 billion Hindi film industry. And it looks like the theatres are at the receiving end. They are likely to see more empty seats, especially with the start of the Indian Premier League cricket tournament on April 18 in South Africa. - CNA/ms

 


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