After a month of standoff, cinema multiplex owners and Bollywood producers are to meet on Tuesday to again try to resolve their imbroglio.
The standoff has resulted in an estimated loss of over Rs 200 crore to the Hindi film exhibition and distribution industry. There have been no new Hindi film release in multiplexes in the past month, while over 15 are ready for release. The estimated production value of these films is about Rs 150 crore, industry sources say.
As a result, occupancy rates in multiplexes have dropped to 10 per cent since April 4, the worst in their history, say executives of leading multiplex chains. This was after Bollywood producers decided not to release new films until their demand for a flat 50 per cent revenue share was met. Multiplexes currently get 52-55 per cent of the revenue in the first week of release of a Hindi film. This rises to 55-60 per cent in the second week and up to 70 per cent in the third and fourth weeks and beyond.
Bollywood producers are pressing for a flat 50:50 revenue sharing agreement for all weeks with multiplexes, while the exhibitors are demanding a performance-linked arrangement where the revenue split will depend on the audience response.
“We expect Mukesh Bhatt and Mahesh Bhatt, along with top executives of film studios like UTV, Yash Raj and Dharam Productions to represent the Bollywood producers. The multiplexes may be represented by some of the chief executives of leading chains,” says a source involved in the discussion with both sides.