Filmmaker Rohit Shetty’s Sooryavanshi, Featuring Akshay Kumar And Katrina Kaif With Ajay Devgn and Ranveer Singh in the lead roles, the release is just a day away. However, advance bookings have not started at the three national multiplex chains – PVR, INOX and Cinépolis.
The delay has been due to a tussle between producers and exhibitors over revenue sharing. Sooryavanshi is presented by Reliance Entertainment and produced by Rohit Shetty Pictures in association with Dharma Productions and Cape of Good Films. Reliance Entertainment is also a co-distributor of Sooryavanshi.
Speaking to Moneycontrol.com, Vishek Chauhan, an exhibitor who runs a single-screen Roopbani cinema in Bihar’s Purnia district, explains that the makers of the film are demanding more distributor share. “They (multiplexes) have opened advances for (Hollywood venture to release on November 5) but not for Sooryavanshi. National chains contribute 60-70 percent of the revenue of any Hindi film. We have been told that the advances may open by today,” Chouhan said.
A source close to the film reveals that being the first major release after the pandemic, Sooryavanshi is only seeking conditions (revenue share with three national multiplex players) similar to what Rajinikanth’s Annaathe received. “Annathe has a revenue sharing model of 57.5% for the first week. Similar national multiplex chains have offered highly discriminatory revenue-sharing terms on regular terms which is 52% to Sooryavanshi. This is sheer discrimination by national multiplexes against a major Hindi film intended for a national audience. Even multiplex owners know that Rohit Shetty was instrumental in the reopening of cinemas in Maharashtra. While Rohit Shetty had big offers from OTT, he stood by the theatres and held off the release of Sooryavanshi for almost two years. “
Talking to News18.com, trade analyst Komal Nahta says that the multiplex association should agree to the terms of the producers. He said, “Without taking a biased attitude, I think Rohit Shetty has waited for more than 18 months to release his film. He deserves a better revenue sharing model and the multiplex association should agree because The producers are not demanding too much. They were instrumental in opening the cinema halls in Maharashtra and they have not given up on the lure of releasing the film on OTT. I think multiplexes are unnecessarily delaying the disposal,” Nahata said.
Elaborating on the issue, analyst Karan Taurani, senior vice president, Elara Capital, explained to moneycontrol.com that the makers of Sooryavanshi are seeking 60 per cent distributor share in the first week. Pre-Covid their share was around 50-52 per cent in the first week. He also pointed out that Hollywood studios and the producers of Bell Bottom were given a high distributor share of close to 60 percent in the first week. And the makers of Sooryavanshi are hoping to continue with the same revenue share.
With theaters closed for several months, many studios and producers released the film for a long time, causing huge losses. Due to this, the producers demanded a higher revenue share which is currently 60 per cent in the first week, 55 per cent in the second week and 50 per cent in the third and fourth weeks.
Pre-Covid, the revenue sharing was around 50 per cent in the first week, 42 per cent in the second week and 37 per cent in the third week. And if a film is expected to give a strong performance at the box office, then the distributor’s share is 55 percent in the first week.
For Sooryavanshi, the exhibitors are demanding a distributor share of around 55 per cent in the first week.
Chauhan said that PVR, INOX, Cinepolis have not agreed to 60 per cent distributor share as they have content to play on their big screen and Eternal is also releasing on the same day as Sooryavanshi. “Also, the exhibitors are arguing that every Hindi filmmaker will ask for it if they now agree to a higher distributor share and then the same issue will arise when Satyamev Jayate 2 releases on November 26.”
While the top multiplexes are still debating on keeping the distributor share at 55 per cent, multiplexes including Carnival Cinemas and Mukta A2 Cinemas have opened up advances for Sooryavanshi. Also, several single and two-screen cinemas have started booking in advance for the Bollywood venture.
Chouhan also told moneycontrol.com that if the differences between the producers and the theater owners are not resolved soon, then there will be a big impact on Sooryavanshi’s business. “It is not looking good for Sooryavanshi, which is seen as a venture that is likely to revive the film business. Apart from this, there is Rajinikanth’s Annaatthe in cinemas in South Bazaar. And then there are the eternal ones,” he said.
(With inputs from Sonil Dedhia)
Disclaimer:Network18 and TV18 – the companies that operate news18.com – are controlled by the Independent Media Trust, of which Reliance Industries is the sole beneficiary.
read all breaking news, breaking news And coronavirus news Here. follow us on Facebook, Twitter And Wire.
.