Movies

Strike ends, Bollywood films to release in multiplexes

MUMBAI: The standoff between producers and multiplexes that had put the Bollywood industry under financial stress has finally ended.

The all-important meeting yesterday saw the film producers and distributors body UPDF make headway with multiplex owners in resolving the dispute over revenue-share, making way for the two-month long strike to end.


New films



will start releasing in all national multiplex chains from 12 June, Mukesh Bhatt tells Indiantelevision.com.



Film producers will have to streamline supply and avoid the clutter of film releases which had halted since 4 April.


“Didn’t I tell you yesterday that we will give you good news tomorrow,” Bhatt further avers. "The strike has ended and the best part is all the plexes have agreed on our terms and have signed the agreement making way for exhibition of films from 12 June.”


Under the terms that have been amicably agreed upon, producers and multiplexes will split revenue equally in the first week of the film‘s release. Producers will get 42.5 per cent for the second week, 37.5 per cent in the third week, and 30 per cent for the fourth week and beyond.


There is also a rider. Multiplex owners had demanded a performance-linked fee structure and they have got their way. “In case a film grosses Rs 175 million or above at the top six multiplex chains in the first week, producers would get an additional 2.5 per cent of revenue share for the first two weeks,” says Reliance Entertainment chairman Amit Khanna, who had been spearheading the truce march on behalf of the multiplexes.


If the film grosses less than Rs 90 million, multiplex owners will get an increase of 2.5 per cent share in revenues.


With regards to distribution, another hot area of dispute, multiplexes have agreed that the release plan in theatres would be decided by the distributors for films that are released above 500 screens. In case of below 500 screens, distributors will supply prints to the extent of 5 per cent to the national chain of multiplexes. The print and freight costs will, however, be absorbed by the multiplexes.


Now that the strike has been called off, the first film that will release in all multiplexes will be Vashu Bhagnani’s Kal Kisne Dekha.

Indiantelevision.com has estimated the multiplex losses to be Rs 2 billion because of the Bollywood strike.

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