No Movies Releasing: Whose loss ?

With the strike by Producers in India against the revenue sharing agreement with Multiplex owners, no new movies have released in over 4 weeks. Some multiplexes are running films that were released prior to the strike. Some have re-released some old movies. the latest I hear is that some superhit movies like Rang De Basanti, Ghajini, Dhoom, Dhoom2, Jodhaa Akbar etc will re-release in single screen theaters. Not sure whom and how much it will help though. For example, in Bangalore, the Single screen theaters are fewer in the central areas and more relegated to outlying residential layouts. April-June, the summer months is usu good for the cinemas but this trike puts a spoke in the wheel and audiences have to find other air-conditioned places to spend time in. India has over 750 multiplexes and 1100+ single screen theaters.

It is believed that each Multiplex is losing INR 1.5 lakhs to INR 2.5 lakhs every day on administration costs and other costs. Occupancy is down to below 15% from the normal 30%-40%. The Producers are not technically losing money yet. Just an opportunity cost of not releasing their movies. Some biggies like Kaminey, Kambakth Ishq, Main aur Mrs Khanna, Wanted etc are awaiting their release yet. Are they all going to release it together when the issue is resolved and risk fragmenting the already dwindling audiences and thereby eat into each others revenue ? What will happen to all the other movies on the floor that will soon be completed and be ready for release ? What about all the associated industry that makes money only on film release including the promotions, distributors, etc etc?

The issues at hand include- Revenue sharing, Ticket Accounting, Entertainment Tax & Service Tax issues. 

The producers are holding strong in demanding a 50:50 revenue sharing model and with all the big producers of Bollywood leading the strike it is expected that the multiplexes will cave in to the demands first. It is a battle of who will blink first that has gone on for for 4 weeks now.

Ultimately it is the viewer who loses out, the DVD rentals that gain and IPL viewing gets some benefits ! It is believed that the rental services like seventymm and BIGFlix (owned by Reliance Anil Dhirubhai Ambani  Group) are doing exceedingly better in these times. I know for sure my own video library Habitat (on Church Street, Bangalore)  has had higher footfalls. I contribute a bit to that, of course !


© 2004-2009 The content is copyrighted to Vedavyasa and may not be reproduced on other websites.
Images acknowledged as belonging to respective owners. Videos acknowledged as belonging to respective owners. website/blog header image designed by Rainer Weber, Pfungstadt, Germany.

  © Blogger templates The Professional Template by 2008

Back to TOP