Bollywood film producers have decided to go ahead with their strike and not release any new films indefinitely from tomorrow as their talks with Multiplex owners about revenue sharing has reached a dead lock.

The protest means no new films will be released in popular multiplex cinemas.
Producers are demanding a 50% share in the revenues generated by the cinemas. Owners say the share should be lower if a film performs poorly.

Actor-producer Vinay Pathak said many high-budget films have been put on hold and all parties stood to lose from the dispute.

“This problem can only be resolved if both parties find a solution that will be beneficial for producers, distributors and multiplexes, and hence for the audience,” he said.

Producers and distributors have been compelled to go ahead with the strike with a heavy heart, filmmaker Mukesh Bhatt, who heads the United Producers Distributors Forum, told reporters.

While the producers are demanding equal share in ticket sales from the multiplex owners, the latter want “performance based” revenue sharing. Bhatt said new films would not be released in single screen theatres as well as multiplexes.

“We have nothing against single screen theaters and will take a call to release new films there in due course of time,” he said adding that “the producers will have to plan their marketing strategy for release of films in single screens.”

“We will give a boost to single screens in the next few months. It is the issue of our survival and the multiplex owners are just not ready to understand,” Bhatt said.

Producers, distributors and exhibitors stand to lose about Rs 100 to 200 crore due this stand-off. Bhatt said the losses could mount to over Rs 500 crore if a solution is not reached at the earliest.

Bollywood has been badly hit by the global economic slowdown and the latest dispute will heap more misery on the industry. It already fears a big drop in its audiences when the IPL cricket bonanza starts in South Africa in mid April.
The Indian film industry is the world’s largest, churning out more than 900 films every year.