Revenue sharing row hits Sandalwood

Backed by the Film Chamber, Kannada producers refuse to release new films in multiplexes

It's now the turn of filmmakers in Karnataka to suffer the stalemate over revenue sharing between producers and multiplex owners.

While multiplexes have offered the producers a revenue-sharing formula of 50, 40, 30 and 25 per cent for the first, second, third and fourth week of screening respectively, the latter want 60 per cent in the first week and flat 50 per cent in the following weeks.

'Respect local films'

It all started when Rajashekhar Naidu, producer of the Vijay-starrer, Taakath, fell out with multiplex owners during the release of the film, over the issue of revenue sharing. "We wanted the multiplexes to enter into 60:50, or at least 50:50 per cent, revenue-sharing agreement for all weeks. They refused to accept this formula, and said that it would not make any difference to them even if Kannada films were not screened at their theatres. How can they take us so lightly? Forget the profit, they should at least learn to respect our language and films. They just can't behave like this," fumed Rajashekar.

He said he approached the film chamber with his grievance. "It was decided, at the chamber meeting, that new Kannada films should not released at the multiplexes unless they agree with our formula of revenue sharing. They should see how this formula works for a few weeks. If this doesn't work then we can think of an alternative," he explained.

KFCC firm on terms

Jayamala, president of the Karnataka Film Chamber of Commerce, said, "We had a meeting with the multiplex operators a couple of days ago. We clearly explained our terms and conditions for the release of Kannada films at multiplexes and placed our demands on revenue sharing at the meeting. But they were not willing to agree. So, a decision was taken in the meeting that no new Kannada films should be released till they accept our terms and conditions."

"Multiplex operators in the city have told us that they would discuss the issue with their head offices in Mumbai and get back to us. We will not release our films till they accept our revenue sharing formula," said Shailendra Babu, producer of Dubai Babu.

Show of strength

Shailendra Babu, producer of Dubai Babu, backed Rajashekar Naidu and did not release his film at the multiplexes last week.u00a0u00a0

u00a0"We have requested Tamil and Telugu producers and distributors to support us. We have received a positive response from them," said Rajashekar.u00a0

Satish, general manager, PVR Cinemas, admitted to the impasse, and said talks were on with the angry producers. "We are ready to come to the negotiation table. I think producers, distributors and exhibitors have to work together," he said.u00a0

In this instance, producers and distributors have come together to take on the exhibitors the all-powerful multiplex chains, not the weaker single screensu2014over revenue sharing. At the heart of all this is money.
u00a0
Producers want a 50-50 split on all films but exhibitors say that the percentage should depend upon the performance of the film.

Class and mass
Bollywood film producers and multiplex owners have been at loggerheads since April 4 over the percentage of profit to be shared from box office collections. According to industry sources, the standoff has resulted in a loss of Rs 300- 350 crore. Will Kannada film producers also suffer huge loss because of the impasse?

"So far, I may have lost Rs 2 lakh because I refused to release my film at the multiplexes. But as multiplexes take away most of our profit, it doesn't affect us much. Our major revenue is from single screen theatres. My only concern is that I may lose the 'class' audience," says Shailendra Babu.