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M. Ramesh

CHENNAI, Aug. 20

JUST eight years ago, Tamil Nadu had around 2,500 cinema theatres. Today, thanks to the emergence of alternative forms of entertainment, about 600 of them have closed down. Those still operating, too are in the danger of closing down.

"The very concept of going to movies has changed over the years," says Mr Abirami Ramanathan, Additional President, Tamilnadu Film Exhibitors Association, and Managing Director, Abirami Theatres Pvt Ltd. "Earlier, people used to go to a theatre to see a particular movie. Today, going to a cinema is for `outing' rather than for watching a film," he says.

Consequently, a demand for modernisation of theatres has been thrust upon theatre owners. Some are willing, while others prefer to bet on the real estate value of their assets.

Paragon, Plaza, Chitra, Anand... ..the list of names of once-famous cinema theatres but now dead, is seemingly unending.

According to Mr Ramanathan, it would cost at least Rs 50 lakh to modernise a theatre. `Modernisation' would mean air conditioning, putting up cushioned seats, a good projection and stereo system. This is the minimum. Of course, there is no upper limit on how much could be spent on sprucing up an existing theatre. For example, Abirami Theatres is spending Rs 12 crore in doing up its complex. In order to make it affordable for theatres to modernise, it is imperative that the State government steps in and helps, Mr Ramanathan told Business Line on Tuesday. The Government's role is indispensable because "otherwise, a dying industry will not have the courage to further invest".

First of all, the Government should announce an Entertainment Tax holiday for at least three years, to those theatres who modernise up to certain standards. If this does not happen, theatres would be forced to close down and the State Government would lose a chunk of the Rs 80-odd crore that it is getting in the form of Entertainment Tax, he said.

The Association has represented to the Chief Minister, Ms J. Jayalalithaa, to look into the problems of the industry. Apart from the entertainment tax holiday, its wish list includes a complete revamp of the outdated Cinema Regulation Act and Rules and `freedom of trade'— allowing theatres to charge any price for the tickets.

Today, there is partial freedom of trade. For the first fifteen days after a movie is released, the theatre is free to charge any price it wants. This ruling, in one swipe, has driven out the black marketeers, because the theatres themselves sell tickets at prices that black marketeer would sell. "But I pay a tax on the amount I charge. The black marketeer does not," Mr Ramanathan pointed out.

If the Government facilitates investment in theatres, it would also help curb piracy of films, because the experience of going to a cinema theatre and watching a movie would make watching movies at home, from pirated CDs, not so attractive.

`Baba' not a financial failure: Whatever be the initial reviews, the latest Rajnikant's blockbuster, Baba, is not a financial failure, Mr Ramanathan, said.

In the first few days after the release of a Rajni movie, it is mostly the members of the fan club who come to see it. What these people expect is not there in adequate measure, in Baba. However, other sections of the society still like it, Mr Ramanathan said.

"Yesterday (Monday) more than 900 tickets were sold out, against the total capacity of 995 (in Abirami theatre). The upper class tickets (those priced Rs 90 and Rs 65) were all sold out fully. Only the lower class seats were empty," Mr Ramanathan said.

Mr Swaroop, Director, Satyam theatre complex, was a little cautious. "In our view, it (Baba) is doing well," he told Business Line. He, however, added that it was too early to predict and "you have to give it a week or two more".

As per the TN Government's rules, a cinema theatre is free to fix any price for the tickets in the first fifteen days after a movie is released. After that period, the ticket rates could go up only as much as 175 per cent of the Government-fixed theatre-specific rates. Thus, the theatres showing Baba now, would shortly have to drop their rates.

When that happens, more people are expected to come to see Baba, Mr Ramanathan said.

"A lot of families would come to the theatres," Mr Swaroop concurred.

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