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MUMBAI: UTV has agreed to take a revenue share
of 41 per cent for the second week collections
from the multiplex owners, ending the dispute
over screening of the Hrithik Roshan-Aishwarya
Rai starrer Jodhaa Akbar.
UTV
had originally demanded a 42.5 per cent share
from the second week collections while multiplex
owners were willing to part with 40 per cent.
The 2.5 per cent extra share that UTV wanted
caused a day's delay for the release of the
Rs 400 million period film in multiplexes across
the country.
"We
have settled at 41 per cent," says a multiplex
owner on condition of anonymity.
UTV
and the multiplex operators had no dispute over
sharing of spoils for the first week, according
to sources. The revenue sharing between multiplexes
and film distributors is usually 50 per cent
for the first week, 40 per cent for the second,
35 per cent for the third and 30 per cent for
the fourth week of run.
When
contacted, UTV Motion Picture Plc director Siddharth
Roy Kapur said, "I do not want to comment
on our commercial terms. The fact is that there
are no more disputes and the multiplexes are
showing the movie from Saturday."
The
reduction by 1.5 per cent means multiplex owners
have made a fair bargain, says the senior executive
of a leading chain. "For every multiplex
chain operator who has 150-200 screens, even
one per cent can make a huge difference. If
the movie does good business, the 2.5 per cent
revenue may sum up to Rs 300,000-400,000 for
an average multiplex property," he adds.
Unable
to show Jodhaa Akbar on the first day
of release, multiplex owners have taken a hit
with industry estimates pegging the average
loss of a big chain operator at Rs 1.5 - 2 million.
In
the recent past, movies like Om Shanti Om,
Sawariya, Lage Raho Munnabhai,
Fanaa have seen late releases due to
disputes over revenue sharing terms.
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