Owner-Producer talks fail, 250 multiplexes to fold

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Multiplex Theatre
New Delhi, Apr 29: With the multiplex owners and the Bollywood film producers failing to come to an agreement regarding the revenue sharing, about 250 multiplexes may shut shop.

“Over 250 multiplexes in the country will close rather than accept what certain Bollywood producers are proposing," said Atul Goel, CEO, the Essel group company that operates Fun Cinemas, and founder of the Multiplex Association of India.

Since Apr 4 the occupancy rates in Multiplexes saw a slip of 20 per cent.

The tiff between the producers and owners started when the producers demanded for a flat 50 per cent revenue share, without which they would not release new films.

Multiplexes currently get a 52 to 55 per cent revenue in the first week which in second week rises to 55 to 60 per cent. After the third week and beyond it raises to 70 percent.

With the new revenue sharing that the producers have demanded for the multiplex owners will loose Rs 200 crore approximately.

Siddharth Roy Kapoor, CEO, UTV Motion Pictures, and spokesperson for the Bollywood film producers said, "We have proposed a flat 50:50 revenue sharing formula. They haven"t got back to us so far. We are open to what they have to say to our proposal but there is no going back on our stand."

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