CARNIVAL DEFAULTS: CINEMA OWNERS FORCED TO PAY PRICE | 26 July, 2022

What is the film industry coming to? Are business ethics a thing of the past? Have the industry people forgotten how to distinguish between the right and the wrong? Is humanity dead?

First, the background: As the entire trade knows, the Carnival chain of multiplexes has been defaulting in payment of electricity bills of cinemas. It has also been regularly defaulting in payment of shares to distributors. As a result, cinemas of the Carnival chain sometimes do not get to screen the latest films — either because the promised cheques of old dues of the chain do not come to the distributors or because the electricity department has ordered closure of the cinema/s for non-payment of electric bills. Since Carnival itself is the defaulter, it cannot complain if films are not supplied to its own properties. However, Carnival also runs independent cinemas of different owners. Imagine the heartburn such incidents of forced closure or non-supply of films must be causing to the owners of such independent cinemas for no fault of theirs.

Several cinema owners, wronged by Carnival, dragged the multiplex chain to court for its defaults. Driven to their wits’ end, some cinema owners recently forcibly took possession of their cinemas from Carnival and have now started running them on their own, just like they used to before they gave their cinemas for running to Carnival.

And now the frustrating part:

Can you believe what Carnival did next? Rather than hang its head in shame, Carnival approached BookMyShow and Paytm and asked them not to accept public booking at those cinemas which had been forcibly taken over by the owners from it (Carnival). This is beyond shameful behaviour! Carnival’s first mistake was when it defaulted. Its second blunder was when it did not care to protect the interest of cinemas it had taken for running, resulting in their closure. As if the two mistakes were not terrible enough, it next asked BookMyShow and Paytm to “co-operate” with it and isolate the genuine owners. Worse still, BookMyShow and Paytm obliged!!!!

Here’s where one seeks an answer: Are BookMyShow and Paytm so innocent that they don’t know whom to support? This is plain business ethics: When there’s a choice between supporting the right and the wrong, any sane businessman will opt to support the right. But BookMyShow and Paytm seem to have forgotten this basic business principle.

This is not all. Distributors of forthcoming films are not ready to supply their films to such cinemas which have been taken over by the owners from Carnival. And why, you are apt to ask. “Because Carnival owes us money in crores of rupees, and the chain will not pay us the outstanding dues if we co-operate with you”. So, the distributors will not co-operate with the rightful owners and not allow them to do business ONLY SO THAT Carnival will pay them the old dues. Really? Since when has Carnival been so righteous in its dealings that some distributors don’t want to wrong it? And how does supply of a film to the rightful owner of a cinema serve as wronging Carnival?

Frankly, the stand taken by both, BookMyShow and Paytm, as also by some distributors, is reprehensible, to say the least.

That films are failing at the box-office left, right and centre is cause for concern. But the bigger concern is when business ethics and principles take a beating. Content can be improved — and will be! So films will start faring well sooner or later. But if the business partners start supporting the wrong-doers and isolating those with their spines intact, it sure is a sign of a deteriorating business. God save this industry!