‘Big’ Blow To Multiplexes’ Unity Producers/Distributors, Big Multiplex Chain Reach ‘Settlement’ Other Multiplex Chains Refuse To Toe Big Line

On Thursday, May 28, both, the media and the trade were agog with rumours that the problems between multiplexes and producers/distributors had been sorted out and, therefore, the ‘strike’ was over. Of course, the rumours were far from true because nothing of the sort had happened.

What had actually happened was that the Big multiplex chain had, without taking the other constituents of the Multi­plex Association of India into confidence, individually settled matters with the producers/ distributors in a marathon meeting held at Taj Land’s End Hotel. However, as the other national multiplex chains of Fame, Inox, PVR, Cine­max, Fun and Movie Time were not party to Big’s settlement and were also not willing to toe Big’s line, the question of the ‘strike’ being called off did not arise. The rumours gained momentum because Amit Khanna (Big) had assur­ed the producers that he would be able to convince the other multiplex chains to come around and accept the terms of settlement finalised by Big and the producers/distributors.

UNITY HANGING ON THIN THREAD
If Big has moved out and negotiated independently with the producers/distributors, it speaks of the pressure on the unity of the multiplexes. Just like the release of 99 two weeks back, in the national multiplex chains, gave a hint of the producers’ unity breaking, the action of Big to go ahead and negotiate separately gives an indication that there is a chance of the multiplex unity also breaking.

On the producers’ side, there are several who have reached the fag end of their patience. Reportedly, the core committee of producers has now assured Vashu Bhagnani that he would, anyhow, be able to release his film on 12th June. This kind of assurance is, of course, nothing but a last-ditch effort to keep the producers’ unity intact.

TERMS OF SETTLEMENT WITH BIG
What were the terms decided by Big and producers/distributors at the meeting held on 27th at Taj?
(1) That multiplexes would pay producers/distributors 50% of the nett collections in week 1, 42.5% in week 2, 37.5% in week 3 and 30% in week 4. In case a film netted more than Rs. 17.5 crore in its entire run, the multiplexes would shell out an additional 2.5% of the nett revenue collected by them in the first and second weeks.

(2) The distribution strategy of films would be left to the discretion of the producers/distributors who would give 5% of the total number of prints relea­sed in the premiere week (for this purpose, prints would imply physical prints and would also include digital screens) to the national multiplex chains for feeding their weaker cinemas. The seven chains would decide how to apportion this 5% of prints among themselves.
The producers had, in their meeting on 26th, held at Yash Chopra’s office, decided to put forth these demands to Big the following day. The meeting with Big on 27th was attended by both, Aamir Khan and Shah Rukh Khan.

OTHER MULTIPLEX CHAINS UNRELENTING
The other multiplex chains refused to accept what Amit Khanna had committed to the community of producers/distributors. Although Amit Khanna did not meet the owners of the other natio­nal chains after his meeting with produ­cers on 27th, he did speak to PVR’s Ajay Bijli and tried to make him see reason and agree to the terms of settlement fina­lised by him. Reportedly, Bijli was not in agreement with Big’s settlement. He is expected in Bombay very shortly.

MULTIPLEXES TAKE LEGAL COURSE
No producer or distributor may probably be aware of this but some of the multiplex chains currently involved in a battle of sorts with producers/distributors, have filed a complaint against them with the Competition Commission of India. The CCI is the new body which has replaced the Monopolies & Restrictive Trade Practices Commission.

The Multiplex Association of India has in its complaint alleged that producers have formed a cartel and are pressurising its members to agree to their terms for sharing revenue and in relation to other issues.
The MAI has filed the complaint against the United Producers & Distributors Forum, the AMPTPP and the Film & TV Pro­ducers Guild of India Ltd. under section 3(3) of the Competi­tion Act. The section deals with anti-competitive agreements and cartels.

Interestingly, among the national multiplex chains which are engaged in the war against producers and distributors, it is only the Big chain which seems to be unaware of the complaint filed by the MAI with the CCI.

‘KAL KISSNE…’ POSTPONED
Earlier, on Friday, 22nd May, produ­cers/distributors had met the multiplex owners at Vidhu Vinod Chopra’s residence to discuss the matter. That meeting was a fiasco as nothing con- crete could be decided, what with either side to the dispute holding its own.

Meanwhile, Vashu Bhagnani on 23rd May postponed the release of his Kal Kissne Dekha which was scheduled for 29th. Know-alls say, Vashu was going ahead with his release plans under the belief that a settlement would be reach­ed at between the two war­ring sides. When it was clear in the meeting at Vinod Chopra’s residence that a settlement was still not on the cards, Bhag­nani took the decision to postpone his film’s release.

Obviously, he did not want to risk the box-office prospects of his film and the career of his son who makes his debut as a hero in it.

Issue dated May 31 – June 6, 2009

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• Producers Happy, Multiplex Operators Sad
• Cracks In Producers’ Unity Show Split Clear As One Group Asks For Performance-Based Revenue Sharing MULTIPLEX OWNERS IN SHOCK Impasse Continues
• Yet Another Inconclusive Meeting… …AND THE STALEMATE CONTINUES First Film Ready For Release In Single-Screen Cinemas, Independent Multiplexes Next Week
• Fresh Film Releases Permitted In Single-Screen Cinemas & Independent Multiplexes As Talks Fail Yet Again