Producers decide to go single screen after failed talks

Mukesh Bhatt,Chairman of the United Producers and Distributors Association,echoed similar sentiments.

“Unfortunately,we have not been able to make them see our side of the issue and we are seriously considering the alternative of going back to the single screen theatres,” Bhatt said.

The talks which had been going on for the past ten days ended in a deadlock as the two parties could not come to a consensus over the issue of revenue sharing which is the bone of contention between the two.

The meeting was held at Yashraj Studios and was attended by representatives of national multiplex chains like PVR,INOX,Cinemax while Mukesh Bhatt,Yash Chopra,UTV and Indian films represented the producers-distributors side.

“We tried our best to make a bid and resolve the matter but we have no choice but to stick to our demands as we are only asking for our legitimate rights,” Bhatt said.

Producers want 50 per cent of the revenue from ticket sales while multiplex owners are offering a performance based profit sharing model with 50 per cent only in the first week of a film’s release.

During the talks,the producers stuck to their demand of equal profit sharing which reportedly led the multiplex owners to walkout from the meeting.

“We have not reached a consensus that could suit both the parties. I am sure that there will be fresh talks again as both the parties are feeling the pain,” said Deepak Asher,the President of Multiplex owners Association.

The standoff between the two parties has already resulted in an estimated loss of over Rs 200 crore to the Hindi film industry.

The producers-distributors have been on strike from April 4 and there has been no new Hindi film release in the multiplexes in the past month.

According to the present model of profit sharing,multiplexes get 52-55 per cent of the revenue in the first week of release. It rises to 55-60 per cent in the second week.