As was first reported by Businessofcinema.com the Producers' Guild decided not to release any new movies from 3 April onwards. The decision still stands two weeks after it was made! Producers still haven’t begun marketing new movies on any media. However, the Guild has made an exception for Percept Picture Company’s Akshay Kumar starrer Tasveer directed by Nagesh Kukunoor, which will release on 3 April, and the strike will now commence from 4 April.
Speaking to Businessofcinema.com, Producers' core committee chairperson Mukesh Bhatt says, “Only Percept’s Tasveer will release on 3 April, after which there will be no releases in cinemas until a solution is arrived at. The exhibitors need to understand that producers are asking for legitimate prices.”
When queried as to for how long movies will not release in cinemas, Bhatt says, “If there is no solution, then we may have to explore the alternative of releasing movies in single screens only.”
For Tasveer, which will release in cinemas on 3 April, the revenue sharing terms are yet to be negotiated between Percept and the exhibitors. “We are working round the clock for Tasveer’s release on 3 April,” Percept Picture Company IPR and distribution head Ashok Ahuja tells Businessofcinema.com.
Due to the tussel over revenue sharing terms, some of the films that are likely to be put on hold include Vishesh Films’ Jashan, Anil Kapoor Films and Studio 18’s Shortkut, Vashu Baghnani and Reliance Big Pictures’ Kal Kissne Dekha and Mukta Arts’ Paying Guest.
another one on similar issue
ReplyDeleteNo Releases From 3rd April
The revenue sharing problem between distributors/producers and multiplexes has not been sorted out even as negotiations have been in progress for the last two weeks. The two parties met on 25th February but could not come to a decision. The producers/distributors decided at a meeting on 27th February that no new film will be promoted until a decision is reached which means no release from 3rd April onwards.
The films which were due to release early April like Shortkut could well come late May as 5-6 weeks are required for promotion and there is no idea when promotion can start. This could make the schedule go completely haywire for 2009 as big films due to release in the summer such as Kambhakkt Ishq, Main Aur Mrs Khanna, Love Aaj Kal and Wanted could have their release dates pushed further ahead.
The main bone of contention is that producers/distributors want a flat 50% share of theatre revenues in the first week for all films irrespective of budget, star cast and banner. The multiplexes are not agreeing to this as they want to dictate terms like payment and number of shows depending on the film. There are rumours that multiplexes could agree on a fixed flat rate but that rate is much lower than the 50% demanded by the distributors/producers. The problem will have to be sorted out as soon as possible because multiplexes will be empty in April meaning huge losses for multiplex owners.