Exhibitors to stop movie-screening if distributors reject profit-sharing formulae
Coronavirus Update, News

Exhibitors to stop movie-screening if distributors reject profit-sharing formulae

February 2, 2021

Mysore/Mysuru: Owners of the single screen theatres have threatened to stop screening of movies across the State, in case film distributors and producers fail to agree to Tamil Nadu-based formulae on profit sharing, said R.R. Odugoudar, President, Karnataka Film Exhibitors’ Federation.

Addressing a news conference at Pathrakartara Bhavan in city this morning, he said that the theatres have suffered huge loss due to closure of cinema halls for over seven to eight months due to COVID-19. After re-opening, people were not coming to cinemas out of fear. In 2004-05, there were 1,800 single screen movie halls in Karnataka, and now it has reduced to 589. On the other hand, the number of single screen theatres was increasing in Tamil Nadu, Kerala, Andhra Pradesh and Telangana. Recently, a meeting was held in which movie distributors agreed to implement the Tamil Nadu model on profit sharing but took a U-turn within two days saying that they would stick to weekly rental basis. Instead of conveying their decision in person, they announced their decision through media, he added.

Odugoudar said the Exhibitors Federation had been telling time and again that running theatres was no longer a profitable venture due to huge expenditure. They were asking distributors and producers to share their agony in the current crisis. In the interest of saving the Kannada film industry, the Federation has recommended a new system which was beneficial to all. Accordingly, if the film nets income is 75 percent to 100 percent, 35 percent must be given to exhibitors and 65 percent be kept by producers/ distributors; in case it is between 50-74 percent, 45 percent should be given to exhibitors and 55 percent to producers/distributors; if it is in the range of 30-49 percent, 70 percent must be given to exhibitors and 30 percent to producers/distributors, and if it between 1-29 percent, then 80 percent must be given to theatres and 20 percent to producers/distributors.

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Shopping Complex

Federation Vice-President M.R. Rajaram said single screen theatres, started by their forefathers, were becoming costly affair to the owners as they were unable to pay electricity bill, staff salary and various taxes. At one time, there were 21 single screen theatres but now only 11 remain; of which, 2 or 3 were on the verge of closure. If this trend continues, cinema halls would be converted into shopping complexes soon, he warned.

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