Producers-multiplexes strike called off

The twomonthlong standoff between producers and multiplex owners over revenue sharing finally ended today following weeks of close door deliberations between the two parties which continued till the wee hours of this morning Producers have decided to commence release of new films from June 12 Filmmaker Mukesh Bhat who is the convenor of the United Producers and Distributors Forum UPDF told PTI that the amicable settlement has been reached and the multiplex owners have agreed to the the producers demands on revenue sharing distribution strategy and eradicating accounting discrepancies He said a detailed announcement of the agreement to be reached between the two parties will be made on Monday Big Cinemas the multiplex chain promoted by the Anil Dhirubhai Ambani Group was the first to give in to the terms and conditions of the UPDF However they signed the agreement last midnight even though they had verbally agreed to do so on May 29 Sources in the UPDF said throughout the week Big Cinemas was trying to convince other multiplex players to come on board and resolve the stand off When Big Cinemas officially announced their agreement with the UPDF other multiplex chains dismissed it saying that the agreement was in favour of producers and distributors Bhat said the discussions continued from midnight till the wee hours today and the unrelenting multiplex operators finally gave in to the terms of producers According to industry sources the multiplexes other than Big Cinemas have verbally agreed to resolve the stand off According to the understanding reached producers and distributors get complete control of the distribution strategy They get the right to choose and release films as per the content Producers and distributors get the right to even mutually agree number of shows and show timings All accounting discrepancies have been acknowledged and to be eradicated from now onwards sources said Wherever the entertainment tax is not applicable it would not be charged All films will be treated equally including all Hollywood films Producers will get 50 per cent of the revenue from ticket sales in week one 425 per cent in week two 375 per cent in week three and 30 per cent from fourth week onwards till the life of the film In addition to this there will be a bonus on all those films which do exceptionally well at the box office In case a movie collects more than 175 crore at the top six multiplex chains excluding single screens and independent multiplexes then the terms will be 525 per cent in the first week 45 in the second 375 in the third and 30 from the fourth week onwards till the life of the film