No film to watch next weekend? This is why
No film to watch next weekend? This is why
IT'S war... and they're fighting for the Rs 150-300 that you shell out for your ticket to the cinemas.
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Share revenues, say producers
Producers/distributors from Shah Rukh Khan, Aamir Khan, Dharma Productions, Yashraj Films, Sajid Nadiadwala to UTV, Eros, Excel, Rakesh Roshan and Vishesh Films have all linked hands, forming the United Producers Forum to strike against the multiplex lobby. Their demand? That the multiplexes share 50:50 on all revenue, including that of tickets sold. Multiplexes, in their turn, say point blank that they do not have the margins to pay up.
'We'd might as well shut shop'
"We're listed companies you can see our balance sheets. We'd be dying a slow death if we agree, so we might as well shut shop instead of this. We're happy sharing on a performance-based model, so long as you bring in people into the theatres. This 50:50 that's slow poison," says Shravan Shroff, owner of Fame multiplexes throughout India.
Ironically, each side states theirs is the international standard. Producers here say that the multiplex sharing is ad hoc (Shroff states that they pay 48 per cent the first week, 38 per cent the second, then 28 per cent, then 25 per cent. The United Producers Forum says that while US and Canada pay even 60 per cent on Week One to producers, they are happy with a 50:50 share.u00a0
Aman Gill, director for domestic theatrical distribution for Studio 18 that distributed money-spinners like Ghajini, Welcome, Singh Is Kinng and Jab We Met, says, "Multiplexes do not distribute films abroad we do and know that we get 50:50 there. If they say they don't have the margins, it's hogwash. It's not our fault that they pay high rentals or have wastage in their systems. Those are bad decisions. We take the risk to make a film, whether it's a hit or flop. Pay us equally."
Shroff counters, "But why must we pay these crazy prices? Eight out of 10 movies flop. I'm happy to even pay 52 per cent if there are the numbers." Film critic Deepa Gahlot agrees, "What are they demanding a share of? So often you see that the show is cancelled because there isn't enough of an audience. It's not as if the public is going in droves. Hardly four-five movies a year go houseful."
Producers are sore that multiplexes have been hogging a lion's share of their earnings the public is, after all, going in to see an Aamir, Shah Rukh, Akshay, Saif, Farah Khan, Karan Johar, Farhan Akhtar or Anurag Kashyap film. What's more, they feel the lobby holds them to ransom, demanding ad hoc revenue shares that differ from film to film. So big or small film, producers now want equal share. "Stars, producers, distributors, directors all feel cheated," says Gill. "With the strike, it will take six weeks for any big film to release because that is the promotion window we require."
Both sides are now in the position of who-will-blink-first. This standoff is novel because while producers have individually fought with multiplexes at the time of release (as recently as UTV with Dev D and Delhi-6 and Eros with Aa Dekhen Zara), this is the first time they've united.
Trade analyst Taran Adarsh says he's never seen this kind of standoff in the 29 years he's tracked the box office. "The producers' take is valid," he says, "I'm a Bollywood addict and it's going to be very difficult. This is one big shock from nearly four-five movies a week, I'm going to nothing. It's like a drought in my life!"
Film clubs step in?
With no Hindi movies, film clubs are looking at a window of opportunity. Says Jimmy Mistry, CEO and founder of Enlighten, "We'd love to organise a three-day festival in multiplexes of Iranian or Alfred Hitchcock films, but we're still bouncing off ideas. We're in the strange position of being wanted by multiplexes if the strike is on and not wanted, if it's called off." Cyrus Dastur, founder of Shamiana that holds short film screenings adds, "I've contacted two multiplex chains for short film screenings. Ideally, I'd like a 75-90 minute slot and a ticket charge of Rs 125-150."u00a0
No back-up in place
Multiplexes don't have a back-up plan for a month of Fridays with no releases. Devang Sampat, senior vice-president of the Cinemax chain, is noncommittal. "The stand-off continues. We're meeting producers on a daily basis and hoping for a solution. We've not planned yet what we will show if the strike continues."
Shroff simply says he'd prefer to have a multiplex holiday. "I might as well close them down for a month. During IPL period, we only get five-seven per cent attendance. Why should I pay electricity charges and salaries for empty halls?"
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