The Hindu Business Line : Bollywood’s bitter battle Showbiz

The three-week-old standoff between the producers and exhibitors resulting in no fresh Hindi films in your neighbouring multiplex shows no sign of ending. If this continues, and all signs point to a long, acrimonious battle, Bollywood stands to lose over Rs 250 crore.

April has been cruel; May promises no relief. Industry insiders have been vocal about the problems which led to the current impasse, but were not willing to go on record. Like in all things showbiz, it’s professional as well as personal. And your stand is determined by which side of the divide you are in. In this instance, producers and distributors have come together to face down the exhibitors — the all-powerful multiplex chains, not the relatively weaker single screens, over revenue sharing.

At the heart of all this is money. Producers want a fifty-fifty split on all films; exhibitors say that the percentage should depend upon the performance of the film. And behind this seemingly simple demand, there’s history — of overweening egos and starry tantrums and out-of-control power.

Where it all started

It all goes back to when Yashraj Films was on top of the Bollywood heap. Every film they made, between 2004 and 2006, was a goldmine in itself. The anticipation shared by the viewers was reflected in all parts of the industry: the distributors knew that their money would come back manifold, and for theatre owners, it was a picnic. Taking full advantage of their king-of-the-castle situation, YRF decided to up the ante by asking for more share. It was the first time the revenue sharing became skewed in favour of the producers, 45:55, 42:58, became de rigeur. No one had a choice: this was Yashraj, and they had to have the film at any cost.

Post the blockbuster Dhoom2, which came out by end of 2006, things started changing. The studio entered into a rough patch, with its films under-performing. Other production houses like Vidhu Vinod Chopra and UTV also got into the act, and started asking for higher terms. Agreements, which used to be signed peaceably amongst the producers-distributors-exhibitors chain, started turning ugly. Till Thursday night, no one knew whether the films would release in multiplexes at all; terms were agreed upon late into the night, films would release on Friday. The decision was taken after some tense last-minute negotiations, and some films would enter the multiplexes later in the week.

Getting back to the real world

Things would have continued in this uncertain fashion if the R word hadn’t entered Bollywood last year. Suddenly, recession was something that studios and production houses had to deal with, without any clear direction. “We had lost touch with reality. Everyone — stars, directors, technicians were asking for crores and getting away with it,” says an industry hand. “Everyone was launching films for Rs 100 crore. Where was the money going to come from? Everyone was taking out ads, the second week of their film releasing, that it was the biggest earner in history. How can you do that, so soon? It’s the hype which killed us”

Showbiz runs on future deliverables. If the market dries up, there’s no money in circulation, and all the films on the floor get affected. If a bank is funding a filmmaker, it is betting money on an individual, so it is very important for that individual to drum up as much noise as possible: the higher the decibel, the more the money. After the markets crashed in 2008, there was massive erosion in the film industry, and everyone was left in scrambles.

Recession hits multiplexes too

Everything pointed towards the multiplex chains, which were looked upon as the only part of the chain still having the maximum fun. “It is natural for people to look around for other sources when the gravy train stops. Of the Rs 10,000 crore that the industry made last year, roughly Rs 7,500 crore came from the domestic theatrical circuit, and the 800 multiplexes account for Rs 3,000- 3,500 crore of that. So it was clear that we would be targeted in this current situation. But our revenues were badly affected too, we could not continue to pay 50:50,” says a multiplex representative. The two sides — producers and distributors on the one, and multiplex chains on the other (led by, according to popular perception, PVR) are sticking to their stands, and accusing each other of arm-twisting tactics. “We deliberately chose this time because we knew the IPL and the elections are on, so anyway there wouldn’t have been any big films,” says one of the biggest distributors in Delhi-UP.

Khan vs. Khan

A week into the strike, the two supposedly warring Khans, Shah Rukh and Aamir, had got together on a common platform, and shown solidarity with the producers on the podium. It made for great TV grabs, but it came as no surprise because the two superstars also produce their own films. Increasingly in fact, the gap between the three vital parts of the chain has been blurring for some time now. PVR and Adlabs make movies, and show them; UTV produces and distributes, and Yashraj does the same. “We all do everything,” says the distributor, and “we all step into each other’s shoes. So what’s the point of all this bickering?”

As far as the viewers are concerned, it is not just pointless. It’s also a total waste of good movie-going hours. This year, the IPL hasn’t proved as sticky as the last, and there are always enough holidays clustered around poll dates to make movies a smart choice.

Has the film industry miscalculated? It’s not just about loss of money; it’s also about loss of face, a classic no-winner.

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