MUMBAI: After a marathon meeting that lasted almost 15 hours, the Hindi film producers and distributors have finally reached common ground and amiably so. The two month long strike has ended and new Hindi films will start releasing in all national multiplex chains from 12 June.
The meeting that was held at Yash Raj Studios between the two parties got over at almost 2.30 am (5 June) and had good news in store for the industry by the end of it.
At the day-long meeting, BIG Cinemas was the first to sign the deal with the producers on the terms that were put forth by Reliance BIG Entertainment chairman Amit Khanna. While sources inform Businessofcinema.com that the other multiplex chains were not in agreement with the terms initially; they finally gave in and signed the same terms at the fag end of the day.
The terms that have been amiably agreed upon by all national multiplex chains are: 50:50 (producers:multiplexes), 42:58, 35:65 and 30:70 for the first four weeks respectively for all movies irrespective of the budget, star cast etc. In case a movie collects more than Rs 17.50 crores at the top six multiplex chains (excluding single screens and independent multiplex chains collections), then the terms will be as follows: 52:48, 45:55, 38:62 and 30:70. These were the terms that Khanna had first proposed to producers and distributors.
With regards to the distribution strategy of films, which was also a major bone of contention between the two parties, it was decided that it would be the producers who will be the decision makers on the same. Other finer details were also sorted out and settled between the two parties.
As was reported by Businessofcinema.com, Khanna has been in back to back meetings with the producers and multiplexes over the last 10 days in order to end the strike.
The first movie to hit screens on 12 June will be Vashu Bhagnani's Kal Kissne Dekha, which is co-produced by BIG Pictures. Pertinent to note here is that even before the issue was resolved tonight, hoardings of...Kal Kissne Dekha with the message - 'Releasing on 12 June in single screens and multiplexes' were spotted in the Andheri suburb of Mumbai as early as 7.30 pm... even as the meeting was still underway!
All said and done.... the 'industrywallas' can all heave a sigh of relief.... FINALLY!
https://www.businessofcinema.com/news.php?newsid=13394Strike Ends... Finally!
By Taran Adarsh, June 5, 2009 - 11:03 IST
It's time to pop champagne. The two warring factions [producers/distributors versus multiplexes] had lengthy discussions on Thursday, which lasted till several hours and the two parties gave their official seal to the terms and conditions, thus putting an end to the 2-month-old strike.
Yes, the strike is over and millions of moviegoers, who were starved of entertainment, can now catch a film at a multiplex close to his/her house, starting from 12th June onwards.
While the media is still speculating over the terms and conditions agreed between the two sides, here's the EXCLUSIVE info on the issue. Only on 'Bollywood Hungama'.
TERMS
The terms agreed upon by the two sides are as follows:-
Week 1: 50%
Week 2: 42.5%
Week 3: 37.5%
Week 4: 30%
Note: If the nett box-office collections, after deducting entertainment tax, crosses Rs. 17.5 crores in the national chain of multiplexes [PVR, Big, Inox, Fame, Fun, Cinemax], the first two weeks' terms would be upped by 2.5%. Which means, Week 1 will be 52.5% and Week 2 will be 45%.
But if the film is a disaster, like say a DRONA or a L0VE STORY 2050, and does less than Rs. 10 crores nett from the national chain of multiplexes, after deducting entertainment tax, in such a scenario, the second and third week terms would be brought down by 2.5%. Which means, Week 2 will be 40% and Week 3 will be 35%. This is applicable only if films are released in over 500 screens.
DISTRIBUTION STRATEGY OF RELEASE
The bone of contention was the distribution strategy of release, with producers and multiplexes' UPDF feeling that they have a right to select their own strategy and what theatres they want to release their films in, but the multiplexes wanted UPDF to supply prints to all the properties of the multiplexes.
The terms agreed upon by the two sides are:- Above 500 screens: No compulsion. The distributor has the right to select his strategy. Below 500 screens: To the extent of 5%, distributors will supply prints to national chain of multiplexes, which are not part of the distribution strategy. But the print cost as also the freight expenses will be borne by the multiplexes.
PLANNING 4 WEEKS IN ADVANCE
In order to safeguard the interest of the distributors, it has been decided that the distributor would write to the national chain of multiplexes at least 4 weeks in advance, announcing the release date of the film.
The national chain of multiplexes will then take a call whether they want to screen a movie or not, within 3 days of receiving the communication, thus avoiding the last-minute decisions.
Once the approval is received from the national chain of multiplexes, the distributor will share his release plan with the respective chains before 3 weeks of release.
The communication will be addressed to each of the national chain of multiplexes separately and similarly, each multiplex will take a call and reply accordingly.
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