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Multiplex theatres to increase base price

Mumbai, Feb 11 () : Multiplex theatres are in for a fresh round of renegotiation with producers and distributors to increase the base price from Rs 24 crore to Rs 35 crore. This time however the multiplexes seem to have an upper hand as a consolidation among the owners has taken place.

After a long battle in 2009 between the multiplex groups and producer/ exhibitor groups, it was agreed that the base price be fixed at Rs 10-17 crore. If the movie collects above Rs 10 crore, then in the first collection, share of producer is 50% and second week it drops to 42 % and third week it remains 37 % and fourth week it will drop to 30%.

If the film collected above Rs 17 crore, the producer’s share would increase by 2.5%. If the collections fell below the base price, the producer share would drop by 2.5%.

Later, there was an agreement that if the multiplex added more screens then a revision of base price could be effected but only once in six months. However this was not implemented. In 2011 the cut off price was raised to Rs 24 crore.

Multiplex owners claim that they have added more screens and that the base price is too low since many films are entering the Rs 100 crore club. They say that fixing it at Rs 35-45 crore would be right.

PVR which bought stake in Cinemax theatre chain is the biggest operator in the country. It has 351 screens in 85 locations. Inox bought off Fame giving it 221 screens across the country. Reliance Big Cinema and Fun Republic added to the list would take multiplex strength to 1000 screens. In the next two years the chain would expand to 2000 screens says trade analyst.

Films in Bollywood in the last year and this season too are witnessing a good streak and even low-budget films aimed for multiplex crowds are making profits and the theatre owners are cashing in on this.