Film release and revenue sharing terms - post Covid ERA!

Post Covid pandemic film industry heaved a sigh of relief when the government allowed cinema halls to operate with 100% capacity provided, they comply to the new set of SOPs (Standard Operating Procedures) issued by Ministry of Information and Broadcasting in line with the Covid-19 protocols.


Trade Analyst are of the view that audience would go back to theatres in large numbers to watch their favourite stars on big screen once restrictions are up lifted. Big ticket filmmakers who have suffered a lot throughout the covid period when shutdown of cinema halls left numerous releases on the shelves. However, such filmmakers are now gearing up for long pending theatrical releases, announcing their release date which is further leading to clash for screen sharing at multiplex and single screen theatres. Film makers are managing to sustain the theatrical release driven business model as they cannot hold back big budget films.
As per the pre-Covid era arrangement, the film makers used to get 50% share of the revenue from the multiplexes. However, in today scenario some of the big budget film makers are demanding a higher revenue share from multiplexes to recover their cost. However, multiplexes feel those terms are not financially viable for them. Multiplex chains are banking on big ticket releases, Hollywood movies besides regional movies to revive box-office revenue. Multiplex operators are also challenged by the shortening gap of movie releases between theatres and OTT platform which has also been a concern for them, as they feel they won’t be able to recover the revenue and cost as the audience might wait for the movies to get released on OTT platform.

However, the big production houses and the leading stars of the industry have committed to release their movies on the big screen which shall give a boost to the exhibition sector. On discussion with the leading movie distributors with whom Whitespace Global has been associated to provide a value-added perspective to enhance financial management, operations, and accountability of film distribution process are of the view that theatrical release are back however they are still in discussion with respect to the screen sharing, distributor share and collections reporting by multiplexes and single screen theatres and expect things to be streamlined like pre-covid era.

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