IMPPA to theatre associations: Change revenue sharing policy

Dec 9, 2020, 5:48 pm ISTNewsIANS

Mumbai: Security beefed-up outside a Mumbai theatre in the wake of country-wide protests against the Aamir Khan starrer film `PK` in Mumbai, on Dec 31, 2014.

Theatres have opened but footfalls are low. Given the circumstances, the Indian Motion Picture Producers' Association (IMPPA) has written to theatre associations seeking change in revenue sharing policy and other terms and conditions. The letter is addressed to Multiplex Association of India, Cinema Owners and Exhibitors Association of India, and Film Federation Of India.

The IMPPA letter readS: "We suggest that the following steps be taken by the screening outlets to provide relief and encouragement to the production sector to produce more and more films so that the screening outlets have adequate content and the audience is attracted to visit the cinema halls more often so that the cinema business returns to its old glory and golden times.

"(1) Instead of the revenue sharing terms of 55:45 between producers and exhibitors respectively in the first week, we are of the opinion that it should be 60:40. The second week's sharing should be 50:50 instead of 45:55. Currently, the third and fourth weeks' revenues are shared in the ratio of 40:60 and 35:65 respectively. From the fifth week onwards, the revenue is currently shared in the ratio of 30:70 for every week. This should be changed to 40:60 from the third week onwards. We are of the opinion that the new sharing terms should be uniform all over India for all language films.

"(2) Producers will not pay the Virtual Print Fee as currently the VPF being borne by the producers which is most wrong as they are bearing entire cost of producing the film and such charges have to be borne by the ones who are taking advantage of VPF which are the exhibitors just as is being done in the case of Hollywood films.

"(3) We also demand that multiplexes should play trailers of new films for free instead of charging for them as at present. Likewise, we have decided that we will not henceforth pay for movie-related publicity being displayed in the multiplex premises, as at present because major portion of the revenue earned by screening the film is taken by the multiplexes and hence it is the duty of the multiplex to publicise the film without charging any money.

"(4) Hindi film producers also demand that show priority should be given to Hindi films over other language films who should be allotted specific slots so that there is no exploitation against any other language film.

"(5) We also feel that the multiplex should do away with sale of tickets with combo packs and a percentage of the online ticket sale fee charged to the consumers should be paid also to producers.

"(6) The choice of flexible prices should be implemented only as per direction and approval of producers.

"(7) We also want a percentage share in any revenue generated from ticket sales platforms and the advertisement revenue from all exhibition outlets for all the ad films screened during their film shows.

"(8) It is also the desire of producers that films which are holdover due to new film releases should not be discontinued or their number of shows be reduced due to new film release as many holdover films continue doing well at the Box Office.

"(9) Maintenance charges, which are currently being deducted from the producer's account, should henceforth not be deducted as producers are not willing to bear the maintenance charges.

"(10) Settlement of accounts and disbursement of funds have been a long cause for heartburn among producers as multiplexes take months to transfer the share amounts to producers. We demand that settlement of accounts and revenue disbursement should happen every fortnight.