The merger of PVR and Inox will probably take a few more weeks to come to complete fruition but the expected has begun to happen. And it is the Punjabi film producers and distributors who are feeling the heat.
First things, first. PVR and Inox are the two biggest national multiplex chains of the country. As news about the proposed merger broke out, it was feared by producers and distributors that things would become more difficult for them as the two largest and already powerful chains would become even and much more powerful after the merger. In other words, the merged entity would be in a far more commanding position vis-à-vis producers and distributors. And then, quite understandably, the merged entity would start tilting the scales in its own favour because of the increase in its bargaining power.
Well, the fears seem to be coming true. Even as the merger is to be still completed, the two multiplex chains as also Cinepolis (the third largest chain in the country) have asked producers of Punjabi films to change the exclusive theatrical window for Punjabi films from four weeks to eight weeks. For those who came in late, unlike Hindi films, producers of regional language films (like Punjabi) are allowed to stream their films after four weeks of their theatrical release. But without any consultations with producers and distributors, PVR, Inox and Cinepolis have announced that Punjabi films would henceforth have to delay the OTT release by four additional weeks so that their streaming can start only after eight weeks from the date of its premiere theatrical release. This would entail losses to producers of Punjabi films because more the gap between a film’s theatrical release and its OTT release, lower the price the producer would get for the platform rights.
The multiplexes are insisting that Punjabi film producers/distributors sign a letter/undertaking before the release of their Punjabi films agreeing to an eight-week hold-back window, failing which the said three major multiplex chains refuse to screen the film. It may be mentioned here that the sharing ratio is the lowest for the distributors of Punjabi films as compared to Hindi and even other regional language films. Additionally, this insistence on the part of PVR-Inox and Cinepolis to increase the theatrical window by four weeks has agitated Punjabi film producers and distributors who seem to be up in arms against the unilateral decision.
Zee Studios, which produces Punjabi films, has dashed off a letter today (15th February) to the Producers’ Guild of India to intervene in the matter. “The Punjabi industry releases over 70 films a year; and with lower revenue shares and extended windowing, it ends up on the losing side due to a monopolistic scenario created by the multiplexes,” mentions Zee Studios’ letter to the Guild.