Here is a case of producer + distributor vs. multiplexes over revenue share. During 3 idiots they were at logger head with each other and release the movie at the neck of the moment.
Normally they overlook overseas collection , One of the reason i can guess is because may be producer will get a minimal revenue share from there as multiplexes are scattered all over places and they have high fixed and variable cost compare to india . So also producers cant have bargaining power just like in india.
When a movie like 3 idiot with Amir as star , multiplex share is 52 % then it must be much more for a normal movie. All these producers , stars project movie as some extraordinary successful etc. but the reality is different. đ
3 Idiots: Battle brews over sharing of revenue
A fresh tussle on sharing revenues from a movie is brewing. The fight is between Vidhu Vinod Chopra, the producer of 3 Idiots, and multiplexes. The Aamir Khan-starrer is slated for release on December 25.
According to sources, Chopra has sent a mail to leading multiplexes PVR Cinemas, INOX Leisure, Cinemax India, FAME India, Fun Cinemas and BIG Cinemas, stating that the producers of the film deserve a higher revenue share.
Chopra is asking for 52 per cent revenue share in the first week, 47.5 per cent in the second week, and 40 per cent in third and fourth weeks.
Multiplex owners are upset as Chopra's suggestions are at variance with the revenue sharing agreement reached between film producers and multiplex owners earlier this year. Under the June agreement, producers will get 52.5 per cent in the first week, 45 per cent in the second week, 37.5 per cent in the third week and 30 per cent in the fourth week if the movie earns over Rs 17 crore at the box office.
The revenue share of the producers will be 50 per cent in the first week, 42.5 per cent in the second week, 37.5 per cent in the third week and 30 per cent in the fourth week if the movie earns Rs 10-17 crore. The producers' share would come down if the movie does a business of less than Rs 10 crore -- 50 per cent for week 1, 40 per cent for week 2, 35 per cent for week 3 and 30 per cent for week 4.
3 Idiots is a Rs 35-crore film starring Aamir Khan, Kareena Kapoor, Sharman Joshi and R Madhavan. The film's distributing rights were bought for around Rs 80 crore by BIG Pictures. Though BIG Pictures has the distribution rights, Chopra, as a profit-sharing partner, is trying to negotiate the revenue terms with multiplexes.
Multiplexes were hoping to sign on the movie this week to open advance booking.
http://movies.rediff.com/report/2009/dec/15/revenue-wars-over-3-idiots.htm
Edited by Bazigar - 10 years ago