Remember, how the industry people, not very long back, spoke about the spirit of brotherhood in bringing it back on track after the debilitating pandemic-induced lockdowns? Remember, how claims were made that every sector would work in tandem just so that the film industry would rise and shine once again? All that seems to have gone out of the window — and before it could even kickstart.
Trouble is brewing between the national multiplex chains (PVR, Inox, Cinepolis and Miraj) on the one hand and Reliance Entertainment, the producers of Sooryavanshi, the first major release post-lockdown. The trouble is spelling tension for non-national multiplex chains/stand-alone multiplexes and single-screen cinemas. For, the non-national multiplexes and single-screen cinemas invariably follow the national multiplex chains, whether on the issue of revenue-sharing or showcasing. And the trouble in the case of Sooryavanshi is about both, revenue-sharing and showcasing.
Reliance Entertainment is demanding 60% of the net collections in the first week, and 55% in the second week. On the other hand, the four national multiplex chains are willing to give Reliance 52.5% in the first week, and 45% in the second week. The sharing in the third and further weeks is not even being discussed at this stage because, as an industry insider put it, “it is too minor a matter, given that collections decrease dramatically from the third week onwards”.
Reliance feels, it is justified in its demand for 60% and 55% because it held on to the temptation of premiering its film on OTT, that too, for 19 long months. As is common knowledge, the film was absolutely ready for release in March 2020, but the lockdown was announced just a few days before the release. Secondly, Reliance is of the view that it took the risk of announcing its release first, when many states had permitted cinemas to function at only 50% capacity. It’s another thing that since then, many of those states have allowed cinemas to work at full capacity, but when Reliance took the decision to release Sooryavanshi on 5th November, the corporate house was not sure that so many states would allow cinemas to work at full capacity. Thirdly, it was Rohit Shetty who initiated the entire process of appealing to the Maharashtra state government to allow cinemas to reopen. Although cinemas in most other states had reopened from July and thereafter this year, big producers refrained from even planning the release of their films till the position of cinemas in Maharashtra became clear. For all these reasons, Reliance Entertainment and Rohit Shetty (one of the producers of Sooryavanshi) were justified in demanding a giant’s share in the box-office revenues, reasoned out the Reliance spokesman in talks with the national multiplex chains.
The multiplex chains, however, are still unwilling to relent. Their arguments are twofold: the first, of course, is about the monies involved. Since the film is expected to fetch huge box-office collections, the difference of 7.5% (60% demanded by Reliance, 52.5% offered by the multiplex chains) in the first week, and 10% (55% demanded by Reliance, 45% offered by the multiplex chains) in the second week will translate into big numbers. Secondly, the multiplex chains are fearful that if they bow down to the demands of Reliance in the case of Sooryavanshi, other producers would expect similar sharing ratios in the case of their films. However, this argument of the multiplex chains does not hold much water because future films should not expect the same benefits as Sooryavanshi. In any case, the multiplex chains have acceded to the demands of the producers of Rajinikanth’s Annaatthe, also releasing on Diwali, by agreeing to give them more than 52.5% (it is 57.5% of net collections, one hears) of the net collections. Also, while the exclusive theatrical window for Sooryavanshi is four weeks, the multiplex chains have agreed to just a three-week exclusive theatrical window for Annaatthe. In other words, for all the claims about the national multiplex chains treating all producers equally, a disparity is visible in the treatment meted out to two producers in the same Diwali week!
The other point relates to the issue of showcasing. Since Hollywood film Eternals is also releasing tomorrow, the multiplex chains were in a dilemma about showcasing of the Hollywood and Bollywood film (Sooryavanshi). Once again, Reliance wanted a clear upper hand in single-screen and two-screen properties of the national multiplex chains for the reasons cited above. That was a cause for tension too but that seems to have been resolved (or will be resolved) more easily.
Point to be noted here is that Reliance has agreed to pay 50% of the usual VPF charges levied by UFO and other digital screening platforms.
It may be mentioned here that many stand-alone multiplexes and non-national multiplex chains as well as single-screen cinemas have started advance booking (wherever the system of advance bookings exists) despite the revenue-sharing terms not being clear (because these terms are finalised only by the national multiplex chains, and then followed by the rest of the exhibitors) because they are keen to release the Akshay Kumar starrer. Of course, the national multiplex chains are likewise keen to screen the film, more so because it is the biggest film which will be hitting the screens in 19 months. But the national multiplex chains are still playing a game of let’s-see-who-blinks-first with Reliance. On its part, Reliance is clear that it can afford to overlook the 400-odd screens of PVR, Inox, Cinepolis and Carnival, especially because the 700-odd stand-alone multiplexes and non-national multiplex chains, and the 1,200-odd single-screen cinemas are with it (Reliance). At least, that’s what Reliance’s stand is signalling the national multiplex chains. But everybody in the trade understands that both the parties need each other because the stakes are very, very high. However, what the public does not understand is: why have the plans for a film like Sooryavanshi not opened till a day before its scheduled release, and why does bookmyshow.com still not show Sooryavanshi as releasing in PVR, Inox, Cinepolis and Miraj properties?
The national multiplex chains need to understand that what Reliance Entertainment is demanding in the form of unusual revenue-sharing terms for its Sooryavanshi should be given to the corporate house. All that the people sitting on the discussion table from the side of the multiplexes since so many days, need to do is close their eyes and think if the demands of Reliance or Rohit Shetty are wrong. They will get their answer loud and clear: in this case, Rohit Shetty needs to be given the respect which Reliance is asking in the form of increased share in revenue because at this juncture, the industry needed a person like Shetty to convince the Maharashtra government to reopen cinemas, and it also needed a film like Sooryavanshi to hopefully bring back the crowds to the cinemas from the safety and comforts of their homes.
May better sense prevail. And may it prevail fast!