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Loading ...Producers strike: A dummys guide
India watches Bollywood on 750 multiplex screens and 1,100 single screen halls. Since the first week of April, the cinema halls have been showing either old movies or Hollywood movies like Monsters Vs Aliens, while the Bollywood-hungry audience is waiting for new releases. But these will not be forthcoming till the producers strike ends. What exactly is the strike about? Heres a quick explanation and what the stars say.
ISSUE 1: Multiplexes currently keep 60 per cent of all profit and pass on 40 per cent to Bollywood. This is after deduction of entertainment tax.
Bollywood says: Give us an equal (50:50) share in profit. It’s very hard to make a film and when it’s done you get more money than us which is unfair. Fair rights for Friday nights, this is the thought, says Shah Rukh Khan. Bollywood points out that multiplexes make money on more than just the movies (food and drinks and parking) so theres no reason to not divide the profit on the movies.
Multiplexes say: Fine, we are ready to divide the profit, but this must be based on the movies performance. Bollywood has not agreed to this saying this is subjective.
Issue 2: Multiplexes are deducting entertainment tax though it is not applicable in all states. Similarly some multiplexes charge between 2 per cent and 8 per cent service tax but this is given neither to the government nor shared with Bollywood.
Bollywood says: This is not right and the money collected against tax should be shared. Some multiplexes have been charging that and keeping it for themselves, says Aamir Khan.
Multiplexes say: This is not something all of us are doing.
Issue 3: Money is not rolling in Bollywood. Because income has stopped, fresh films are not being made or planned. Losses this month are estimated to be Rs 150 crore so far.
Bollywood says: We are willing to wait it out for this issue to be resolved because it is important. While this is true, it is also true that with the recession in full force, all work in Bollywood is generally slowing down.
Multiplexes say: We are ready to compromise, offer us good terms.
Issue 4: Irregular reporting of ticket sales by multiplexes
Bollywood says: This should be honest and transparent. Daily collection reports show variations in ticket charges with the reports sent to producers and distribtuors, says Aamir Khan. We have found that if the deal is on 100 per cent bookings, the last two seats never get sold, says producer Ronnie Screwvala of UTV.
Multiplexes say: Accounting is on computers and transparent.
What this means to you:
1) No major films will be released till this is resolved. The next big release is two months away, Kambakkht Ishq in June.
2) Producers are threatening even to pull out old movies that are currently showing in multiplexes and give them to single-screens.
3) Films ready for release are being delayed while one side compromises.
While a compromise is expected to come soon, one thing is clear: We will have no juicy movies this summer.
SOURCE:STARBOXOFFICE.COM
