Movies

Exhibitors favour performance-linked revenue share model

MUMBAI: Close on the heels of the producers and distributors deciding not to screen films in multiplexes from 4 April, multiplex owners have stated that they are ready to agree upon a performance-based revenue sharing model.

The performance-linked model will be based on benchmarks such as box office collections of a film, budget of the film and star cast, multiplex exhibitors told reporters here today.


"If the movie is a super hit, we would share higher revenue. But if a movie like Chandni Chowk To China fails at the box office, then be ready to suffer the losses," said Fame India MD Shravan Shroff.


On an average, a multiplex earns 70-75 per cent from box office, 20 per cent from concessions, and 5-10 per cent from advertisements.


Multiplex exhibitors believe that unlike yesteryear, when rent to the theatre owner was fixed irrespective of collections, today there is a clear revenue sharing where theatre owners also bear part of the risk.


"Also, with the advent of computerised ticketing, the multiplex industry has offered a major impetus in actual revenue delivery to various stakeholders," elaborated Big Cinemas COO Tushar Dhingra.


The exhibitors point out that multiplex penetration in the smaller cities has brought patrons back to cinema and that all kinds of movies are being released which were not viable few years ago.






In 2005-06, 45 to 50 per cent of the box office was contributed by multiplexes while in 2007-08, the figure rose from 65 to 70 per cent and is likely to go up further in the coming years.


For 2005-06, distributors took 42 per cent of the box office returns. This has gone up to 43 per cent in 2007-08, the multiplex exhibitors clarified.


Meanwhile, when quizzed why multiplexes in India do not follow a revenue sharing model based on global standards, Dhingra noted that the hospitality services offered in India are quite different from international markets standards.


Also, there is a different tax structure overseas with US paying about 8.5 per cent tax and UK paying around 15-17 per cent.


Today there are approximately 225 multiplexes and 850 screens in India. The projected multiplex screen count will be 1500 screens by the end of 2010 and 2500 screens by the end of 2011, Dhingra said.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/27/phillauri%20%281%29.jpg?itok=0P_Rrhjw
New films fail to attract viewers

*The poor run of films at the box office continues unabated save for an odd Dangal or a reasonable entertainer in Badrinath Ki Dulhania. Not that any of these films can sustain a multiscreen cinema complex for more than a few weeks

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/25/Rjavardhan-rathor-800x800.jpg?itok=eYAh5ig1
Rs 125 million incurred on Film Heritage Mission this year

NEW DELHI: A total of about 1,32,000 film reels have been acquired and the work of assessment, preventive conservation and restoration started under a mission mode project under the National Film Heritage Mission (NFHM). The scheme is to be implemented between 2014-15 and 2020-21 with total outlay...

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/24/anarkali%20%281%29.jpg?itok=_Hz9Q49z
Anaarkali Of Aarah: Worth a look

Just when one was expecting a week of lack-lustre films especially as some small filmmaker is releasing his or her work, comes a surprise that reinforces faith in good cinema.

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/21/Badrinath-ki-Dulhaniya.jpg?itok=9AKk4o7J
Dismal releases help last week's film to turn lucky at the Box Office

MUMBAI: With dismal releases, the week proved lucky for last week’s ‘Badrinath ki Dulhaniya’ as none of the three films fresh releases this week managed to create any impact on the viewers.

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/20/Freedom%20of%20speech.jpg?itok=S5jPVnrt
'Freedom of speech' vital in progressive society, says Nandita Das

NEW DELHI: Three short films made by renowned filmmakers Sudhir Mishra, Nandita Das and Ram Madhvani on meaningful subjects marked the India Today conclave on its closing day in Mumbai. India Today Group editorial director Kalli Purie said the films had been commissioned by the group to mark four...

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/17/machine%20%281%29_0.jpg?itok=rcz0b_3J
Machine.... Poor show

Machine is a rather unlikely story with an unlikely title. Coming from Abbas Mustan duo, the Burmawalla brothers, who made a reputation for giving thrillers and action films with good musical score, one expected more of the same stuff. Having worked with some of the top artistes of Hindi film...

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/14/badri%20%281%29.jpg?itok=86DVRTqy
'Badrinath Ki Dulhania' is on its way to becoming a hit

The time period for the release of Badrinath Ki Dulhania was dicey to say the least. The film was released bang in the middle of days of election results in the most politically volatile states of the North India, board exams and the pre-Holi Friday. Also, cinema halls are closed till mid-noon on...

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/14/paramount.jpg?itok=gy3_va7l
Paramount & Anonymous Content to make 'The Windfall' as a TV series

Paramount TV and Anonymous Content have come together to develop Indian author Diksha Basu’s upcoming debut novel The Windfall as a TV series.

Movies Hollywood
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/10/kung-fu%20%281%29.jpg?itok=xrr6JRYL
Kung Fu Panda 3 premiering on Star Movies on 19 March

This month Star Movies brings to its viewers Kung Fu Panda 3, the latest installment in the animated series featuring Po, a dumpling loving Panda, who defies all odds to become a Dragon Warrior. From the very first film, Po has created a special space in the hearts of audiences of every age and...

Movies Hollywood

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories