Film buffs can finally heave a sigh of relief, and some other media sectors can get back to worrying, as Bollywood producers and multiplex owners agreed to end the two-month long standoff. The bane of contention was over revenue sharing and the deadlock had prevented new films from being shown in Indian multiplexes since April 4, 2009.
Many media experts have been quoted on saying that the lack of new movies in theatres paid off in the favour of television viewing at home and even for the English titles and smaller titles to some extent.
As is known, producers demanded a 50-50 share in the profits generated by the cinemas, while theatre owners argued the producers’ cut should be less if a film does poorly at the box office. The multiplex owners wanted a performance-linked model based on a film’s budget and star power.
Reportedly, on June 5, 2009, the 50 percent revenue share has been agreed on for the first week. Reports also suggest that all national multiplexes were part of this agreement.