COVID-19: IMPPA Seeks Reforms From Theatres to Boost Film Revenue

The film industry has been hit by the coronavirus pandemic.

The IMPPA has sought a change in the revenue share model between producers and exhibitors in the wake of the COVID-19 pandemic.

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The Indian Motion Picture Producers' Association (IMPPA) has written to theatre associations asking them to amend their policies on revenue sharing to boost the business of the film industry which has been badly hit by the coronavirus pandemic.

The letter highlighted that business has been impacted due to cinema halls being permitted to function at only a 50 per cent capacity, fewer moviegoers due to fears over the spread of COVID-19 and the halting of film shoots during the pan-India lockdown in March.

Among the reformations suggested are:

• An increase in the current revenue sharing terms between producers and exhibitors from 55:45 to 60:40 for the first week of a film's run, followed by a 50:50 share instead of 45:55 for the second week and a 40:60 share week 3 onwards. Currently the share for weeks 3, 4 and 5 is 40:60, 35:65 and 35:70, respectively.

• New movie trailers to be screened at multiplexes for free. The letter stated that producers had henceforth declined to pay for movie-related publicity displayed at multiplex premises because a major portion of revenue earned from the screening of films goes to the multiplex.

• Cinema halls and multiplexes to do away with the "sale of combo packs" and a percentage of online ticket sales should go to producers.

• Flexible prices should only be implemented after consulting with producers.

• A percentage share in revenue earned from ticket sales platforms and advertisements shown during a film should be shared with producers.

• Not to reduce the number of shows or discontinue the screening of a film when a new one is released.

• Priority be given to films being released in Hindi over other languages, which should be given specific slots.