The Hindu Business Line : Multiplex operators may sign pact with producers

Mumbai, June 4 The eight-week standoff between producers and multiplexes on revenue-sharing is believed to have reached a consensus, with few multiplex operators likely to sign an agreement with the United Producers and Distributors Forum (UPDF).

Big Cinemas led by Reliance Entertainment’s Chairman, Mr Amit Khanna, has signed a deal with producers on Thursday evening, an entertainment industry source told Business Line.

The Anil Dhirubhai Ambani-promoted chain has agreed to part with 50 per cent revenue in the first week, 42.5 per cent in the second week and 37.5 per cent in the third week to the producers. However, repeated calls and mails sent by Business Line to the top brass of Big Cinemas and UPDF remain unanswered. The Thursday meeting between UPDF and other operators is likely to continue late into the night. So far, each camp has been united, not giving in to the others’ demands.

Last week, the twist came from rumours that Big Cinemas, PVR Cinemas and Inox (who control over 50 per cent of the total screens in the country) broke away from the multiplex operators. Speculation was rife then, that the remaining players such as Cinemax, Fame and Fun Republic were not willing to go with the other three.

In the past too, multiplex owners have held several marathon meetings among themselves to come to a common ground. Multiplexes such as PVR and Big Cinemas may be the first to start screening films from June 15, a source said. Of the six multiplex operators, five are listed companies who are expected to exhibit gloomy financial results in the first quarter of new financial year.

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