Cobwebs had been thickening on the screens that used to light up every day to add a fresh layer of ideas to the dream world of the average Indian. Six crucial Fridays have passed since the country’s film producers and distributors decided against releasing movies in multiplexes — until their demands are met. Even the May 15 release of 99 hasn’t answered the deadlock. The two sections of the fraternity came together under the United Producers Forum (UPF), wanting the multiplex chains to accede to certain basic clauses. Chiefly, a 50-50 revenue sharing with the multiplexes for three years after the release, regardless of star cast or production budget. Currently each film negotiates terms prior to release — agreements are at times signed as late as on the eve of the Friday release.
So far, the percentage ratio for producers-distributors from multiplexes for the first, second and third weeks of release has been 48, 38 and 30. With single screens it’s 80-20 per cent in the distributor’s favour. The other demands are remittance from ticket sales within a seven-day timeframe and flexibility for producers/distributors to release films as per their distribution strategy. Apparently, Rs 22 crore from collections remains outstanding to the producers of the Hindi-language film Ghajini.
The last major film releases were Percept Picture Company’s Hindi film 8x10 Tasveer and Paramount Pictures’ Fast & Furious 4 on April 3. While the former fared dismally, the other reaped the benefits of the strike. Eros International’s March 27 release Aa Dekhen Zara was the first casualty; forced to release in single screens only. Thereafter, a handful of stuck-in-the-can B-grade and independent films and some Hollywood titles have taken advantage of available screens. But none of the Indian films has reaped major benefits.
Estimates say individual multiplexes are losing about Rs 1,50,000 to Rs 2,00,000 a day with only 15 per cent occupancy, on an average. The multiplex owners — they represent seven major players: Inox, Fun Cinemas, Big Cinemas, Movietime, Fame, Cinemax and PVR — say the software supplied is below-par, badly affecting occupancy rates. They believe in the viability of a performance-based model than a standard 50-50 revenue-sharing pact. But the UPF doesn’t accept this. The forum is looking for a three-year standard agreement applicable to all films — large or small — to create a level playing field.
The producers are unmoved. Priti Shahani of Indian Films says the interests of the overall business mean the standoff will be “as long as it has to”, and advocates a long-term solution. “We are working with single screens to utilise their services better. Unfortunately single screens and independent multiplexes have got caught in the crossfire. Sure, independent and art-house films have an opportunity to release, but it has not translated into collections.”
The multiplexes have agreed to submit accounts on time, but the overall stubbornness of the opposing camps has prompted film trade analysts to call the stalemate a waste of time. Notes Komal Nahata, editor of Film Information: “The appalling response to the films that did release in the last month proves that good films will run, bad films won’t, especially with recession, high ticket prices and the IPL.”
Even last year, the T20 cricket tournament hit the box office. But then, as Shahani says, “An unreleased film is not a business loss.” However a multiplex owner counters, “You cannot blame the exhibitor for losses if acquisition prices are too high.”
Even if the imbroglio is resolved, major releases require a four-six week promotion window. This suggests that May will be a lean month at the movies. Big films to be pushed back include UTV’s Main Aur Mrs Khanna and Kaminey, Boney Kapoor’s Wanted, Eros International’s Aladdin, Kambakht Ishq and Love Aaj Kal and The Indian Film Company’s ShortKut and Life Partner. The COO of another multiplex chain notes one cannot put all films on the same platform. “The producers and distributors must understand that. See, the quality of the content has affected us adversely. Footfalls increase with good movies.”
Even prior to the standoff, the recession had left multiplex operators sulking. Single-screen cinemas are also suffering as the small films being released can’t play in their 1,000-plus-seat halls. High ticket prices and the cost of refreshments had cinegoers thinking twice about spending Rs 1,000 on a family outing at the cinema, not to mention a lacklustre box office showing, with a spate of duds and not one blockbuster this year. The last big Hindi hits were Rab Ne Bana Di Jodi and Ghajini in end-2008.
Piquantly, the biggest winner of the strike so far has been piracy — all the recent Oscar films have been hot sellers. Several ancillary industries have also taken a hit due to the paucity of releases, like newspapers that depend on film ads, billboards and TV, not to mention the popcorn and samosa makers, film publicists, and publicity material manufacturers.
The film industry today is highly dependent on the multiplexes. In 2005-06, 45 to 50 per cent of the box office was contributed by multiplexes. The percentage rose to almost 70 in 2007-08. Today, India has some 225 multiplexes and 850 screens. And while producers-distributors look forward to a consensus with single screens and independent multiplexes, the multiplex owners plan to buy films and release them directly. The pro-UPF Hollywood studios, meanwhile, are gearing up for releases. Paramount has shown Monsters Vs Aliens and Sony Pictures is set to release Angels and Demons on May 29.
Caught in the middle is the movie buff. But as the IPL ends later this month, the producers might suddenly find incentives to book screens and entice audiences back. Hopefully the multiplex owners will also be cooperative then.
— uditaj@gmail.com