Thiruvananthapuram: From Thursday, over 360 theatres affiliated to the Kerala Film Exhibitors’ Federation, the combine of ‘A’ class cinemas in the State, will remain closed demanding a higher revenue share.[InPostAds ad=”1″]
The exhibitors are demanding 50 per cent of the earnings in the first week of release, instead of the existing 40 per cent.
The dispute happened after the Federation wanted a change in the revenue sharing ratio between them and the distributors. The ratio currently stands at 60:40 of the collections and the exhibitors want it to be 50:50, which has been opposed by the producers. This has been the model since 2003.
The producers and the distributors are now up in arms, and have said that they will not succumb to the arm-twisting tactics of the Federation. They would now start releasing new Malayalam films that have been held up since last month at other theatres.
One reason why the Federation decided to seek a change in the revenue sharing pattern is with the entry of multiplexes, who are being given a 50:50 pattern. So, they are demanding that they too should get it.
Since the impasse began, a few rounds of conciliation talks between the representatives of the producers, Federation and distributors failed to break the deadlock. Now they are watching how the state government will intervene as precious revenue by way of taxes, which the state government receives, is taking a hit.