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
Eros International's Bajrangi Bhaijaan grosses over Rs.169.17 crores (USD 25.95 million) in first 10 days of release

Eros International Media Ltd, a leading global film company in the Indian film entertainment industry, announced Producer Salman Khan Film’s Bajrangi Bhaijaan has collected over Rs. 160 crores within ten days of its release in China. More than two years since it opened in India, Bajrangi Bhaijaan...

Movies Hindi
'Federation of Western India Cine Employees' conducts a successful conclave with 22 crafts union’s association

Mumbai: The Federation of Western India Cine Employees (FWICE), the nodal body for all cine employees hosted a formal get-together and benevolence meeting with the leaders of the 22 crafts union’s associations affiliated to it on 7th March 2018 at Pathare Prabhu Hall, Andheri (West), Mumbai.FWICE...

Movies Hindi
New York Film Academy announces expansion in India to keep pace with growth of the indian film industry as well as digital media & entertainment genres

New York Film Academy (NYFA) is one of the leading film schools of the world. It was founded on the philosophy that "learning by doing" combined with best industry practices is more valuable than years of theoretical study for filmmakers and actors. This educational model allows students to...

Movies Hindi
UTV action packs in more power for fans

Home to a wide-range of high-octane movies across Hollywood, Bollywood, Asian and Regional cinema, UTV ACTION is the go-to linear channel offering uninterrupted dhamakedar entertainment to film aficionados. Now, the channel is all set to offer 100 plus new, adrenaline-rushing titles to its robust...

Movies Hindi
Why Padmaavat in 3D almost didn't happen

​​Fans can’t stop raving about the 3D version of Padmaavat and how it drew them right into the world of Queen Padmavati. However, it is a little known fact that director Sanjay Leela Bhansali had long been considering the idea of releasing his films in 3D. “We wanted to try 3D with Guzaarish and...

Movies Hindi
Let Vidya Balan charm you with her simplicity with the world television premiere of 'Tumhari Sulu' on Sony MAX

Sony MAX, the leading Hindi movies channel from Sony Pictures Networks is all set give you a sneak peek into the lives of middle-class suburban Indian households with the world television premiere of ‘Tumhari Sulu’ on 25th February at 12 noon. Vidya Balan and Manav Kaul’s portrayal of Sulochana...

Movies Hindi
Sony MAX2 to air Amitabh Bachchan’s iconic movie 'Don'

MUMBAI: Who can forget the blockbuster songs like ‘Yeh Mera Dil’, ‘Khaike Pan Banaraswala’ and the gripping plot of crime thriller Don? It’s still one of the most loved movie of Amitabh Bachchan fans across the country.

Movies Hindi
Biopics & sports-based films help popularise sporting culture in India

MUMBAI: “Sattar minute, sattar minute hai tumhare paas ... shayad tumhari zindagi ke sabse khaas sattar minute ... (Seventy minutes, seventy minutes is what you have ... may be the most important seventy minutes of your life..)”.

Movies Hindi
PVR numbers up on higher ticket price in third quarter

BENGALURU: Despite lower admits and occupancy during the quarter ended 31 December 2017 (Q3 2018, the quarter under review), Indian entertainment and exhibition company PVR Ltd (PVR) reported higher revenue due to higher ticket prices. In its investor presentation, the company reported 2.8 per...

Movies Hindi

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories