As stand-off with producers/distributors continues, film exhibitors have come up with their own revenue sharing model which they claim is beneficial to both
Even as the continued stand-off between exhibitors and producers/distributors over the issue of revenue sharing has led to non-screening of films despite the Centre easing all curbs, the Karnataka Film Exhibitors’ Federation has recommended a new revenue sharing model based on the percentage system to resume screening of films in single-screen cinemas of all languages, including Kannada, Hindi, English, Tamil, Telugu.
“This model is beneficial to both as the motto post-COVID-19 pandemic is live and let live. This new system of sharing revenue on the ticket collections was proposed since there was no positive response from the producers/distributors in the previous meetings on our demand,” said Federation Chairman R.R. Odugowdar.
Addressing a press conference here on Tuesday, he said all members of the Federation sought change in revenue sharing by switching over from fixed screening charges to percentage system. The exhibitors are also demanding withdrawal of non-refundable advance (NRA), minimum guarantee (MG) and heavy advances the producers and distributors seek from them for releasing the films. The advances had caused heavy capital loss to the theatres, he claimed.
New percentage system
The revenue sharing model proposed by the exhibitors is like this – exhibitors or theatres would get 35 per cent and producer/distributor 65 per cent if the collection on houseful net of theatre is 75-100 per cent. Likewise, if the collection was 50-74 per cent, the exhibitor would get 45 per cent and producer 55 per cent. Similarly, the exhibitors’ share would be 70 percent and the distributors’ 30 percent if the theatre collection was 30-49 per cent. Finally, the exhibitors would get 80 per cent share and the producers 20 per cent if the collection was 1 to 29 percent.
The Federation suggested that the producers/distributors share 50 per cent of the revenue in first week’s collections, 40 per cent for the second week and 30 per cent for the third week irrespective of the collections for their movies screened at multiplexes.
A release from the Federation said the producers’ representatives during a meeting held on January 26 proposed and agreed to the Tamil Nadu percentage revenue sharing model for single-screen theatres which the Federation approved. But the same representative backtracked, issued a media statement saying that the TN system was not suitable for them and the producers insisted on the continuation of the old fixed revenue sharing model.
Federation Vice-President M.R. Rajaram, and other office-bearers were present.