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Bollywood Halts New Releases
Dispute with Movie Theater Owners

- Parimal M. Rohit
- Bollywood Editor
H'wood Correspondent
Hollywood is not the only segment of the entertainment industry with a looming labor stoppage. Moviegoers in India are bracing themselves for a real-life battle between Bollywood film producers and owners of multi-screen theaters. According to BBC News, both sides failed to settle on a revenue-sharing agreement on April 4th, opening the door for a cease in movie production.
As part of the reported strike, the revenue dispute between multiplex owners and film producers would force a freeze on the marketing and release of all films after April 4th. While new releases will be shelved during the strike, movie theater owners said they will continue to show older films as well as non-Hindi movies or dubbed Hollywood productions.
At the heart of the dispute is how both camps will share box office revenue, officials said. Film producers reportedly sought a 50/50 share in all theater revenue, while multiplex owners countered with a performance-based model based on the film’s budget and star power, etc. “The bottom line is that Bollywood will not see a new release for at least another six weeks, because any new film requires that much time for marketing and publicity,” Indian producer Mukesh Bhatt told the international media in a telephone interview.
While producers demanded a 50% revenue share of monies raised by multi-screen theaters, movie theater owners believe producers will earn a disproportionate amount of revenue under such an agreement.
According to Priti Shahani, vice-president of Indian Films, a number of big-budget films were scheduled for nationwide release on or after April 4th. She added studios anticipated between $48 million and $60 million in potential revenue with these films.
India’s Hindi film industry — known domestically and internationally as Bollywood — produces between 800 to 1,000 films per year. There is no word whether the freeze will have an impact on India’s other film industries in niche markets, including Tollywood and Kollywood. BBC News reports the Indian film industry is valued at $2 billion per year, with as much as 70% of its revenues deriving from multi-screen theaters.
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