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The producer-multiplex owner conflict is hurting all
If 2008 turned out bad for the Indian film industry, 2009 is proving worse! The first quarter of the year is already over and there is only red splattered all over on bollywood balance sheets. Except for Raaz2 (which fared average), no bollywood film released in the first quarter of 2009, has done credit to the efforts of the clapperboys and costs. CC2C, Delhi 6, Tasveer 8x10 & many more flicks also met a similar fate, and if that wasn't enough, the tussle over revenue sharing, between multiplex owners and film producers, have made matters worse!
Currently producers get 40-48% of the ticket sales in the first week, a share which falls in consequent weeks. The producers are now asking for a 50% share throughout, irrespective of the films’ performance, budget, starcast et al. “Equal profit sharing is practised globally. So this is a fight for justice,” says filmmaker Mahesh Bhatt. But Tushar Dhingra, COO, Big Cinemas, counters, “Before the advent of multiplexes, rent to the theatre owner was fixed irrespective of whether the movie was a hit or flop. Therefore, the risk lay completely with the producer. Now, the theatre owners also bear part of the risk.” So what has been the reaction from the producers? Well, no new release has happened in multiplexes since April 4, 2009, and for now, the producers have decided to stick to this decision until a 50-50 revenue sharing scheme is finalised.
So while on one end, the film producers and distributors are busy with the dogfight, flicks are taking the hits; the first casualty being Aa Dekhen Zara (ADZ) which was released only in single-screen theatres. The reason clearly being that the two parties couldn't arrive at an agreeable revenue sharing scheme for the film. So how much has the film suffered so far? As per estimates, ADZ has collected a petty Rs.2 crore at the box office. Now compare that with the collection of a small budget film like A Wednesday, released in September 2008, which milked between Rs.8-10 crore! “Had ADZ been released in multiplexes too, the collections would have been many times better,” asserts a media analyst. The success of any film today depends a lot on the multiplex audience.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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The producer-multiplex owner conflict is hurting all
If 2008 turned out bad for the Indian film industry, 2009 is proving worse! The first quarter of the year is already over and there is only red splattered all over on bollywood balance sheets. Except for Raaz2 (which fared average), no bollywood film released in the first quarter of 2009, has done credit to the efforts of the clapperboys and costs. CC2C, Delhi 6, Tasveer 8x10 & many more flicks also met a similar fate, and if that wasn't enough, the tussle over revenue sharing, between multiplex owners and film producers, have made matters worse!Currently producers get 40-48% of the ticket sales in the first week, a share which falls in consequent weeks. The producers are now asking for a 50% share throughout, irrespective of the films’ performance, budget, starcast et al. “Equal profit sharing is practised globally. So this is a fight for justice,” says filmmaker Mahesh Bhatt. But Tushar Dhingra, COO, Big Cinemas, counters, “Before the advent of multiplexes, rent to the theatre owner was fixed irrespective of whether the movie was a hit or flop. Therefore, the risk lay completely with the producer. Now, the theatre owners also bear part of the risk.” So what has been the reaction from the producers? Well, no new release has happened in multiplexes since April 4, 2009, and for now, the producers have decided to stick to this decision until a 50-50 revenue sharing scheme is finalised.
So while on one end, the film producers and distributors are busy with the dogfight, flicks are taking the hits; the first casualty being Aa Dekhen Zara (ADZ) which was released only in single-screen theatres. The reason clearly being that the two parties couldn't arrive at an agreeable revenue sharing scheme for the film. So how much has the film suffered so far? As per estimates, ADZ has collected a petty Rs.2 crore at the box office. Now compare that with the collection of a small budget film like A Wednesday, released in September 2008, which milked between Rs.8-10 crore! “Had ADZ been released in multiplexes too, the collections would have been many times better,” asserts a media analyst. The success of any film today depends a lot on the multiplex audience.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
ZEE BUSINESS BEST B SCHOOL SURVEY
IIPM Ranked No. 1 B-School In Global Exposre - Zee...
1500-plus IIPM students placed across the country with 44 bagging international offers
PLANMAN CHE (Centre for Higher Education)
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...
