CHENNAI: In an unexpected turn of events, digital service providers Qube and UFO have announced 100 per cent waiver of VPF fees for all films releasing in November. The statement has come as a surprise as Qube had until now refused to completely waive VPF fee and had instead said it would reduce fee by 60 per cent due to pressure from Tamil Film Active Producers’ Association (TFAPA).
A press release from Qube said, “Providing this full discount on VPF would enable producers and exhibitors to release new movies during Deepavali season, help kickstart cinema operations and finally get the industry back on its feet again.”
However, Qube has made it clear that other charges, such as logistic charges collected for content delivery and key management, will be applicable for DCI and E-Cinema content.
Tamil film producers feel this waiver for a single month is not a solution. Dhananjayan, Vice-president of TFAPA, said, “What Qube and UFO have announced is only a temporary solution. Only producers of films releasing this month will enjoy these benefits. Even the 60 per cent reduction announced earlier was a temporary move.
Unless they decide to cut down VPF fees permanently there will be no end to the problem.” “We haven’t directed producers to withhold release, but they have volunteered to do so until a permanent solution is arrived at.” Bharathiraja, President of TFAPA, made it clear post-November, when the DSPs revert to the old VPF charges, producers would continue to oppose.