Left out of Unlock 4.0, multiplex body says owners will lose Rs 2,000 crore and that thousands of jobs will be under threat
Mohar Basu, Uma Ramasubramanian (MID-DAY; August 31, 2020)

Exhibitors were looking forward to the theatrical release of Christopher Nolan's Tenet on September 18 to bounce back into business. However, their hopes were dashed on Saturday as the government announced that cinemas will continue to remain shut till September 30 as part of the Unlock 4.0 guidelines.

Several exhibitors and distributors started the online petition #SupportMovieTheatres on Sunday, urging the government to reconsider the decision.

Exhibitor Akshaye Rathi says the nationwide theatre shutdown that began on March 14 due to the spread of Coronavirus has left the sector bleeding, with the country reportedly losing 10 per cent of its screen count in the interim. "If salons, malls and restaurants are allowed to function, why are cinemas being singled out? We have all broken into our savings to continue paying our staff, but now, we will probably have to let go of people who have been with us for decades. It's not possible to continue paying salaries with no income," he laments, adding that theatre owners have to pay property taxes, rents and electricity bills despite the shutdown. He rues that the ongoing dialogues with the home ministry, and the information and broadcasting ministry, since June have yielded no result. "There has not been any financial support from the government or an attempt to waive off the taxes."

The theatre business is estimated to have lost close to Rs 2,000 crore in the last five months, with layoffs becoming a harsh reality. "The industry employs over five lakh people; additionally, it also supports vendors who supply snacks. With no solution in sight, one can expect job cuts that run into lakhs," adds Rathi.

Amit Sharma, MD, Miraj Entertainment, hopes the government compensates for the one-month delay by allowing theatres to function at 50 per cent capacity when they re-open. "If we are allowed to open as part of Unlock 5 plan, there is no point restricting the audience capacity to 30 per cent. We will negotiate for a 50 to 60 per cent seating capacity." He points out that the dry spell has not been as hard on the film industry. "Only the multiplex operators are losing money; the content creators have recovered their costs by taking the digital route." While several films have sought a digital premiere, the makers of Sooryavanshi and '83 have deferred the films' release to Diwali and Christmas respectively to avail the advantage of a theatrical run.

Mohan Umrotkar, CEO, Carnival Cinemas, states that theatres are likely to re-open only by mid-October. "We request the government to announce the date in advance so that we can decide [on the move line-up] with the content creators," he says.

As theatres remain shut, talks of reintroducing the concept of drive-in theatres in India are revving up
Prashant Singh (HINDUSTAN TIMES; August 28, 2020)

Ever thought of watching a film under the open sky? Well, that could soon be a reality as the concept of drive-in theatres seem to be vrooming ahead in India. As per reports, while PVR Cinemas is readying to launch its first drive-in theatre in Mumbai, Carnival Cinemas has “identified three locations in Bengaluru, Mumbai and Kochi.” It’s believed that the latter plans to kick off some operations “in the next two months”. A realty consulting company is apparently in talks with an Indian firm for drive-in cinemas around various places such as Delhi, Mumbai, Hyderabad and Punjab.

Novelty factor
So, are drive-in theatres the next big thing? “It could be a big market if planned properly. They could also be the ‘big-screen experience’ in a totally new way. Also, after multiplexes, we haven’t had a new addition in the space of movie consumption, so this could shake things up,” says trade analyst Taran Adarsh, who remembers watching numerous films at a drive-in theatre in Bandra in the 70’s.

Experts feel the investment on a drive-in theatre could be anything between ₹3-5 crore depending on the location/size of the property, facilities and the capacity of vehicles. Drive-in theatres used to be popular in places such as Mumbai, Ahmedabad and Bengaluru but lost its appeal due to the multiplex boom. They, however, are still very popular in European countries as well as the US.

Economically viable
“For audiences, it can be a totally new, unique experience. But the most critical part is that it has to be planned and executed in a manner wherein it’s financially feasible – in terms of earmarking properties, ticket prices and number of shows etc. – in every way possible,” says exhibitor-distributor Akshaye Rathi, adding: “However, in India, where we are under-screened, drive-in theatres could also be a great, novel way to add screens. Especially, in tier-2 and tier-3 towns, where the land prices are reasonable/affordable, it can provide people new ways of entertainment.”

At the same time, industry insiders feel “very limited number of shows” [only post-sunset], higher ticket prices [including car parking fees] as compared to regular theatres and India’s extreme weather pattern could be a few reasons why drive-in cinemas may be a challenge. “Safety is also a huge concern. Back in the day, at Bandra’s drive-in theatre, patrons’ safety became a problem due to incidents of looting and attacks on vehicles. Such things have to be taken care of on priority,” says Manoj Desai, executive director of the G7 multiplex and Maratha Mandir.

Safety & privacy
Experts agree that at a time when social distancing and lockdown have become a part of life, drive-in theatres are likely to attract audiences in a big way. “For me, more than watching a film, drive-in theatres would be all about enjoying that special experience,” says filmmaker Nikkhil Advani, who watched many movies at a drive-in theatre, as a kid in Mumbai.

He adds: “Now, with high-end technology such as Bluetooth, great sound systems, LED screens etc., let’s see how things go. I’m sure besides the younger generation who haven’t experienced it yet, there are going to be many like me who would want to have that experience all over again.” Adarsh puts things in perspective: “This concept may sound appealing to people considering the times [Coronavirus pandemic] that we are living in.”

While reopening theatres is still a way off, multiplexes and single screens are already mulling competent pricing, comeback
Himesh Mankad (MUMBAI MIRROR; May 22, 2020)

The announcement of Gulabo Sitabo and Shakuntala Devi heading for direct-to-digital release has fueled a debate within the industry. While exhibitors have voiced disappointment at lack of support from filmmakers, many on the social media have come down heavily on theatre owners, particularly multiplexes, reminding them that they had also robbed the single screens of their business, forcing many to down shutters and turning away independent filmmakers. Grievances against expensive nibbles, besides exorbitantly-priced tickets, spilled out, too. Darshan Kuldeep, one of the disgruntled cinegoers, summed it up, saying, “You guys are pro now in selling 350 Rs popcorn, 150 Rs samosa and 100 Rs water bottle, so start grocery business and be #atmanirbhar (sic).”

Reacting to this, Mohan Umrotkar, CEO, Carnival Cinemas, points out that the debate over food and beverage prices is not new. “You pay for not just the food but also the ambience. It’s a business model. We don’t earn much from the sale of tickets as that money is divided among the government, distributors and us. That’s why food is integral to our business,” argues Umrotkar, pointing out that this is all that theatre owners have, in addition to other expenses like rent and overheads, unlike producers, who can monetize satellite, digital and music rights of films. “Prices of tickets and F&B (food and beverage) depends on show timings, too. Plus, there are combos. There’s actually very little left for us.”

Akshaye Rathi, a theatre owner from Nagpur, reasons that the audience has the option of watching a film at a multiplex or an affordable single screen depending on their pocket. “The difference between the two is akin to choosing between a five-star hotel and a roadside dhaba. And we have both billionaires and commoners in our country,” he quips, confident that in the post-Coronavirus world and with recession a reality, single screens will bounce back strongly.

Raj Bansal, a multiplex owner from Jaipur, believes that bringing audience back to the theatres will require incentives like affordable ticket prices, concession in snacks and free coupons. “Cinema will never die but this is the best way forward,” he concludes.

Producers' Guild says filmmakers compelled to move to OTT due to the uncertain times
Mohar Basu, Uma Ramasubramanian (MID-DAY; May 16, 2020)

On Thursday, Gulabo Sitabo became the first Bollywood film to bite the OTT bait, inviting the wrath of several exhibitors and distributors who felt betrayed that the makers had bypassed a theatrical release. Leading multiplex chain Inox immediately warned of "retributive measures" while PVR Cinemas urged filmmakers to hold off their projects till the theatres re-open. The rift only widened on Friday with Amazon Prime Video announcing the direct-to-web release of seven films, including Vidya Balan's Shakuntala Devi.

With two big releases — Sooryavanshi and '83 — waiting in the wings, trade sources indicate the industry has made losses upwards of Rs 600 crore, keeping in mind their domestic and overseas business, satellite rights, and OTT and music deals. The recent move has only added to the exhibitors' woes. "The distribution sector earns around Rs 75 crore from a big film, and about Rs 15 crore to Rs 25 crore from a medium-budget venture. Exhibitors and distributors are looking at a collective loss of around Rs 50 crore from Gulabo Sitabo and Shakuntala Devi's OTT premiere," says a trade source.

Mohan Umrotkar, CEO, Carnival Cinemas, echoes the sentiment as he reasons that the two medium-budget films would have enjoyed strong footfalls once the theatres reopened. "Ayushmann Khurrana is having a golden run at the box-office, his film would have garnered close to Rs 75 crore. Couple that with Vidya's film, and the two would have generated close to Rs 95 crore at the box-office. So, we are staring at huge losses," he says.

However, he acknowledges that producers cannot wait indefinitely. "I understand there will be a rush of movies when the lockdown is lifted. That said, we were expecting them to stand by us because we are family."

Meanwhile, the Producers' Guild hasn't taken kindly to the aggressive stance adopted by Inox. Manish Goswami, vice-president, Guild, points out that producers have taken the step out of sheer necessity. "In such times, a stakeholder will only wait till a point, post which he will seek alternatives. After all, for the next six months, people won't have the confidence to go to theatres. They will not [take the risk of] community viewing unless it is a bumper project," he says.

Though refusing to take sides, trade analyst Taran Adarsh doesn't deny that filmmakers may be settling for less than their films' worth. "Assuming satellite deals stay intact, [the makers] are still losing out on their movies' overseas business. But my sympathies lie with the producers, who have been constantly asking about the possibility of theatres reopening. It's unfair to expect them to hold off their films [indefinitely]. It would help if producers and cinema owners enter a negotiation."



Will They? Will They Not?
Over the next few weeks, key players in the digital market may acquire the rights of several Bollywood films. Sources say makers of Gunjan Saxena: The Kargil Girl, Ludo and Jhund are in talks with streaming giants for a direct-to-web release. "They are all complete and awaiting release. Indoo Ki Jawaani, Roohi-Afzana and Shiddat are in the last leg of post-production and may explore the digital route," says a trade source.

Last month, this paper had reported that Akshay Kumar was contemplating releasing Laxmmi Bomb directly on Disney+Hotstar. "His films bring good revenue at the box-office," says Umrotkar, alluding that Laxmmi Bomb seeking an online release will be a severe blow for exhibitors.

Radhika Bhirani (HINDUSTAN TIMES; May 9, 2020)

Imagine a big screen, but in an open space; a reclining seat but in your car; popcorn run to your vehicle; and a personal sound system. As old-school drive-in theatres are being revived across the world — Germany, Spain, Lithuania, South Korea and parts of the US for instance — amid the lockdown, experts feel the concept may not be feasible in India.

Producer Bhushan Kumar believes, “Drive-in theatre concept is far-fetched in this kind of a situation where a normal theatre’s survival is uncertain as of now.”

While drive-in isn’t an unexplored concept in the country – Ahmedabad, Chennai and Gurugram have one each – it isn’t one that has flourished. “Whether there would be renewed traction in drive-in properties because of Coronavirus or an uptake in numbers, that is something one will have to see when this whole situation is a little more settled,” says PVR Pictures CEO Kamal Gianchandani, who finds drive-in theatre an “interesting proposition” and reveals they’re developing one in the country’s film capital, Mumbai.

While drive-ins may be a “unique experience” for the millennial and Gen-Z audience, Alok Tandon, CEO, INOX Leisure Ltd, says “managing to secure a large expanse of space at a comfortable distance”, can be an uphill task. Real estate costs, especially, don’t make drive-ins a commercially viable exhibition business proposal, observes Mohan Umrotkar, CEO, Carnival Cinemas.

As trade analyst Komal Nahta says, “Drive-in theatres will take a long time to get constructed. Till then, one hopes the Covid-19 vaccine will come out.”

Several theatres in Mumbai may be compelled to deduct staff salaries if shutdown extends to mid-April
Uma Ramasubramanian (MID-DAY; March 23, 2020)

As theatres across the state enter the second week of shutdown, exhibitors admit that the move — though necessary — has hampered their business. While the theatre owners have made provisions for this month's salaries of their employees, they agree that they may have to take hard decisions if the shutdown extends well beyond March 31.

Mohan Umrotkar, CEO, Carnival Cinemas that has seen its senior level management take a voluntary pay cut, says, "We will assess the situation post April 1. If normalcy is restored, there won't be any deduction in salaries. But if this extends till the second week of April, we may have to deduct salaries of our staff. But we will not lay off anyone," he asserts.

Amit Sharma, MD, Miraj Cinemas, also resolves to stand by its staff. "Currently, we have given the employees paid leave for a month. If the shutdown exceeds, we will take a call on the salary cut but [it will be exercised] only at the senior level. There will be no layoffs at Miraj."

Even as uncertainty looms large due to Covid-19 outbreak, cinema halls make salary provisions for employees
Sonil Dedhia (HINDUSTAN TIMES; March 22, 2020)

The entertainment industry is reeling under the impact of Covid-19 outbreak, like other businesses. Cinema halls have been shut till March 31 in most states and film shoots have been halted. Even the release of big-budget films, such as Sooryavanshi and ’83, has been postponed.

Amid the crisis, cinema owners are trying to ensure that there’s a salary provision in place for employees. Manoj Desai, executive director, G-7 multiplex and Maratha Mandir, Mumbai, informs that the non-operation of theatres won’t result in the slashing of the salaries. “The shutdown is a huge blow. We have a staff of around 100 people across our two properties. We will give them the entire salaries till March 31. If the government continues the shutdown, we will take a call accordingly,” Desai says.

A similar policy is being followed by Miraj Cinemas. Bhuvanesh Mendiratta, associate vice president, operations and development, of the cinemas, says, “The situation is uncertain. We don’t know for how long the crisis will last. We are dispersing a 100% payment to our employees till March 31. What happens after that depends on how critical the situation is.”

At Carnival Cinemas, Mohan Umrotkar, CEO, informs that the senior level management has taken a salary cut. “The board members and those at the CXO level have taken a voluntary cut of 25% till the operation is shut,” says Umrotkar, adding that the other employees have been asked to exhaust their paid leaves. Umrotkar, however, adds that the government provides some relief in terms of concession or exemption, failing which the entire industry will have to take drastic measures. “There are fixed costs like rent, electricity etc involved. We are hoping the government can provide some respite by reduction in fixed cost,” he says.

Anish Jain, head of finance and accounts at Raj Mandir, Jaipur, says, “We shut down our theatre on March 14, as directed by the Rajasthan government. Every employee will be given their salary. We will stick to this till March 31.”

A spokesperson from SVF Cinemas, West Bengal, says, “All employees across all our verticals will be paid full salary till March 31. We have planned to pay employees in advance, in case there is a lock down.”

Trade analyst Amod Mehra says that theatres across the country will face a severe financial blow. “I don’t think we have ever witnessed such a shutdown in the history of Indian cinema. Mumbai alone has about 200 screens, which will stay closed till March 31. It’s hard to quantify exactly how much money is at stake. If the closure continues till next month, this would have severe implications including job and salary cuts.”

We reached out to Inox Cinemas who refused to comment on the matter. At the same time there was no response from PVR cinemas till the time of going to press.

With inputs from Titas Chowdhury



Piping hot business no longer

With a daily consumption of over 50,000-60,000 samosas at theatres across Mumbai, the snack is a hot favourite. For the past five decades and three generations, most cinema halls in Mumbai have got their daily supply of samosas from A-1 Samosa, situated in Sion. But now with the shutting down of the cinema halls, A-1 Samosa’s business is suffering badly. A representative from the firm, who doesn’t wish to be named, says, “The business is affected badly. It’s a complete shut down. We are operating at 25% of our capacity. Theatres are going to be shut for at least another 10 days and it might even continue if the situation doesn’t improve.”

Bombay Times spoke to the producer after the Competition Commission of India ruled in favour of the multiplexes on the Virtual Print Fee (VPF) issue
Rachana Dubey (BOMBAY TIMES; July 26, 2019)

Back in March, producer Ronnie Screwvala had filed case with the government body Competition Commission of India, against four multiplex chains — PVR, Inox, Cinepolis and Carnival Cinemas — and the FICCI Multiplex Association of India, alleging undue imposition of Virtual Print Fee (VPF). In his petition, the filmmaker complained that the multiplexes make Indian film producers/distributors cough up Rs 20,000 for every film screened, per screen as VPF.

On Wednesday evening, the CCI ruled the matter favouring the multiplex chains and their association, citing that there wasn’t enough reason or material for them to initiate a probe in the matter as Ronnie had demanded in his petition. The Commission observed that the general allegations made in the case, including lack of transparency in exhibition of trailers and promotions, do not fall within the ambit of the provisions of the Competition Act, 2002. The Commission was of the opinion that there exists no prima facie case warranting investigation into the matter.

Talking to BT about this, Ronnie said, “I have read the ruling from the CCI on the cartelization by the multiplexes and they have dismissed the petition on the grounds that it lacked documented proof of such misuse of collective power. My complaint was not an anonymous one which is normally how it starts. It was based on asking the CCI to launch a formal probe and investigation and they would have got all the documentation and proof they needed. But they have ruled on it and I respect and abide by their final view. I am disappointed, though not surprised, at the complete lack of support from all colleagues, producers, distributors and the creative community who in private commended the action. But not one individual, company or association supported my complaint as that would have gone a long way to endorse with the CCI the apparent practices that is common knowledge to all. I am a firm believer that there is a circle of life and in the end, truth always catches up with reality. So, I am sure that at an appropriate time there will be justice to this. Meanwhile, it’s business as usual for the multiplexes while fair play takes a back seat.”

Talking about the ruling, Kamal Gianchandani, the head honcho of PVR Cinemas, told BT, “I think the CCI’s decision validates what we have believed and said from the time this one particular matter came to the fore. I am thankful to them for viewing it objectively.”

To jog your memory, as a result of Ronnie’s petition, Inox Leisure had boycotted the film Mard Ko Dard Nahi Hota and refused to screen it (which was produced by Ronnie’s company). Reportedly, he was asked to withdraw his complaint, if he wanted the multiplex chain to screen his film. The producer, it’s learnt, had paid VPF to other multiplexes, albeit under protest, for his film to be screened. His petition described VPF as a draconian, discriminatory charge that the multiplex chains are forcibly imposing.

In 2010, following a discussion among producers, distributors and exhibitors, the process of transformation from physical prints to digital had started. Back then, it was agreed upon that VPF will be levied to support the transition for five years, which ended in December 2015. According to Ronnie’s complaint, the period was extended twice, following a verbal agreement between producers and distributors with the sunset clause till December 2017.

What is Virtual Print Fee?
Earlier, when films were developed from negatives, the distributors and producers had to pay a Print Fee to develop the print of their films. And the exhibitors used to bear the projector costs. VPF was first introduced to help make multiplexes compliant with Digital Cinema Initiaties (DCI), a technology that helps reduce cost, curbs piracy and enhances the movie-viewing experience. Since the technology was costly, it was agreed that the multiplex chains will charge Rs 20,000 per screen for each movie for five years to recover that cost, beginning 2010.
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Ronnie Screwvala reacts to the CCI’s order against his allegation of undue imposition of Virtual Print Fee by national multiplex chains; Kamal Gianchandani of PVR says it was not an industry issue
Himesh Mankad (MUMBAI MIRROR; July 26, 2019)

On March 19, Mirror had reported that Ronnie Screwvala had filed a case with the Competition Commission of India (CCI) against four multiplex chains—PVR, Inox, Cinepolis and Carnival Cinemas—and the FCCI Multiplex Association of India after the release of Sushant Singh Rajput’s dacoit-drama, Sonchiriya, for “anti-competitive collusion with respect to undue imposition of Virtual Print Fee (VPF)”. In his petition, the filmmaker had alleged that the multiplexes make Indian film producers/distributors pay Rs 20,000 for every film screened in their theatres as VPF. He described it as a “draconian discriminatory charge that the multiplex chains are forcibly imposing”.

We have now learnt that in its judgment passed on Wednesday, the CCI has given a clean chit to the multiplexes. “The informant (Ronnie) did not allege that VPF is anti-competitive per-se, rather, the allegation of informant pertains to its undue imposition after a certain period,” read the judgment. It observed that there is no formal/written agreement pertaining to imposition of VPF between producers and national multiplex chains, hence a ‘Sun-set clause’ doesn’t exist. The case was filed under section 3 of the Competition Act, 2002, which prohibits an association or enterprise from entering into anti-competitive agreement.

Ronnie, in his petition, had stated that following a discussion between producers, distributors and exhibitors in 2010, the transition from physical prints to digital started and a fee was agreed upon to support the evolution for five years till December 2015. It was extended twice, following a verbal agreement with producers/ distributors till December 2017. “But they have continued collecting VPF directly from distributors of Hindi and regional films,” he groused. Apart from VPF, Ronnie also raised concern over delay in release of payment by the multiplexes, lack of transparency over screening advertisements and inserting interval in films which don’t call for a break. These grouses didn’t fall within ambit of the Competition Act, 2002. The concluding lines of the CCI’s order read, “The commission does not find alleged contravention of the provision of Section 3 of the Act against opposite parties being made out.”

Kamal Gianchandani, CEO, PVR, reacted to the CCI’s order, saying, “It is a validation of the position we had taken all along.” He added that partners often have disagreements and he’s looking forward to the future because content producers and suppliers are integral to the business. “We are committed to working in a constructive fashion. I’m glad that the debate at the CCI forum is out of the way, this wasn’t an industry issue, but rather a disagreement with one producer,” he insisted.

Ronnie is disappointed that colleagues from Bollywood didn’t come forward to support him. He believes that CCI’s verdict would have been different had the film industry shown some unity. “Have read the ruling from the CCI on the cartelization by the ’plexes and they have dismissed the petition on the grounds that it lacked documented proof of such misuse of collective power. My complaint was not an anonymous one which is normally how it starts and was based on asking the CCI to launch a formal probe and investigation to all the practices and they would have got all the documentation and proof they needed. But they have ruled on it and I respect and abide by their final view. Am disappointed though not surprised at the lack of support from colleagues, producers, distributors and creative community who, in private, commended the action but not one individual, company or association supported my complaint as that would have gone a long way to endorse with the CCI the apparent practices that is common knowledge to all.”

He ended saying, “But I am a firm believer that there is a Circle of Life and in the end truth always catches up with reality so am sure at an appropriate time there will be justice. In the meantime, it’s business as usual for the ’plexes while fair play takes a back seat.”

Himesh Mankad (MUMBAI MIRROR; April 24, 2019)

Mirror has learnt that multiplex owners across the country have received permission for round-the-clock screening of Avengers: Endgame, which opens this Friday. With shows starting as early as 1 am, the film will play every hour. “As of now, we have 1.30 am shows at our theatre in Chinchwad and Pune and a 3.20 am show at the IMAX Screen in Wadala. We plan to add more shows” says Rahul Kadbet, Vice President, Programming, Carnival Cinemas.

According to a source, other multiplex chains including PVR, Cinepolis and INOX are also reworking their programming schedule to accommodate more shows. “It is for the first time that cinema staff will work in multiple shifts as the demand is high for the film. The first show may start as early as midnight,” adds the source.

Meanwhile, B-Town hasn’t taken kindly to the discrimination between Hindi films and their Hollywood counterparts. “They don’t have to pay VPF (Virtual Print Fee), are given a free hand in surge-pricing and now rules are being restructured so they can make more money. This is unfair,” grouses a filmmaker on the condition of anonymity.

Producer Tanuj Garg echoed the fraternity’s stance on VPF, saying, “It is unjust and discriminatory when a Hollywood film is not charged the fee and Bollywood is. As an industry we need to look at this aggressively. Ronnie (Screwvala, filmmaker) has made the first move in the direction and I am sure everyone else will unite for the cause.”

Manoj Desai, owner of Maratha Mandir and G-7 multiplex, popularly known as Gaiety-Galaxy, revealed that Disney (distributor for the film) had asked him to bump up ticket prices to Rs 250. “How could I do that when the price for a Hindi film here doesn’t exceed Rs 110? I was adamant to not screen the film, but they agreed to my terms,” he adds.

Avengers row aside, trade analyst Taran Adarsh stated that ticket rates, irrespective of a film’s scale, should be nominal. “Audience will watch a big film anyway. Reasonable pricing will bring more footfalls to the theatres, and that’s where the magic lies,” he asserts.

Producer Bhushan Kumar, whose Eid release Bharat will hit the marquee on June 5, sees this as a positive development. “With this, we got to know that such a thing is possible but at the end of the day, it’s all about demand.” When asked if he would propose a similar move for his Salman Khan-starrer, he said, “Why not? That said, even big Hindi films run for almost entire days with a five-hour break.”

Filmmaker has complained that Indian producers/distributors are being forced to pay Rs 20,000 per theatre, something Hollywood films are exempt from
Himesh Mankad (MUMBAI MIRROR; March 19, 2019)

Ronnie Screwvala has filed a case with the Competition Commission of India against four multiplex chains—PVR, Inox, Cinepolis and Carnival Cinemas—as also the FICCI Multiplex Association of India for “anti-competitive collusion with respect to undue imposition of Visual Print Fee (VPF)”. In his petition the filmmaker has complained that the multiplexes make Indian film producers/distributors pay Rs 20,000 for every film screened in every theatre as VPF. He described it as a “draconian discriminatory charge that the multiplex chains are forcibly imposing”.

Following a discussion among producers, distributors and exhibitors in 2010, the process of transformation from physical prints to digital started and the fee was agreed upon to support the evolution for a period of five years till December 2015. But, according to the complaint, it was extended twice following a verbal agreement with producers and distributors with the sunset clause till December 2017. “However, they have continued collecting VPF directly from the distributors of Hindi and regional films,” the petition states, pointing out that Hollywood movies, even dubbed versions, are exempt from VPF and this gives them a competitive advantage over domestic films.

The petition brings to notice that 2016 Aamir Khan-sport drama, Dangal, produced by Disney was not charged the discriminatory fee owing to an arrangement with the foreign studio regarding the exhibition of their international films in India. “This severely limits any kind of level playing field that Indian content creators crave for.”

The petition informs he was forced to release Love Per Square Foot, digitally, as the exorbitant charges to get his film screened in the national chains were not economically viable. It reasons that while national multiplex chains are the obvious choice for a theatrical release since they control 60 per cent of the entire multiplex film exhibition business in India, given that Love Per Square Foot was made on a budget of just Rs 8 crore, the additional cost would have made it a loss-making venture, as hypothetically, the multiplexes would have earned in excess of Rs 7 crore from him as compared to his earnings of Rs 2.35 crore. “All the Indian producers on an average have to pay Rs 2 to 3 crore to the multiplexes as Visual Print Fees, if they want to release their film on 1000 to 1500 screens,” it states.

More recently he had a run-in with cineowners during the release of the Sonchiriya. He’d planned to release Sushant Singh’s dacoit drama on 505 screens in PVR, INOX, Cinepolis and Carnival. But that would have meant spending Rs 93 lakh on VPF. So he had to change his release plans.

When we reached out to Kamal Gianchandani, the CEO of PVR Cinemas, he said, “Since the matter is now sub-judice and will be under investigation there is nothing more to add at this stage.”

A glass of soft drink for Rs 240, a bucket of regular popcorn for Rs 240, and two samosas for Rs 95. Welcome to fleeceland

Days after a Mirror test drive revealed that multiplexes were violating a govt rule by not allowing people to bring food from outside, we highlight the massive overpricing of food items at the theatres
MUMBAI MIRROR (August 13, 2018)


Days after this paper exposed how multiplexes are hiding behind the lack-of-clarity excuse to bar moviegoers from carrying food inside (‘Now showing: Confusion’, August 8), we carried out another test drive, this time on the prices of food and beverages. The results will leave you seething.

At a Lower Parel multiplex (see above), items as basic as a regular tub of popcorn and a glass of soft drink were priced over 500 per cent more than what they cost outside a cinema theatre — more than the price of the movie ticket itself.

And the overpriced food did little to enhance the movie-going experience, as showed by a Borivali theatre. A Ghatkopar East multiplex claimed to have reduced prices “by a big margin” since the debate over unaffordable food began raging, but catching a movie there could still burn a hole in patrons’ pockets.

The test drive came days after the state government, after announcing during the monsoon session of the legislature that moviegoers were free to carry food into multiplexes from August 1, shot itself in the foot by telling the Bombay High Court — which is hearing a public interest litigation on the matter — that such a move could pose a security risk. The HC demanded an explanation from the state government on that claim.

“What security concern can be caused by food inside theatres? People are not prohibited from carrying food to any other public place besides cinema halls. If people can be permitted to carry home food inside the aircraft then why not to theatres?” the bench had sought to know.

Following the state government’s U-turn on the issue, Ravindra Chavan, minister of state for food and civil supplies, clarified with Mirror last week that there was “no ambiguity” and multiplexes cannot prevent anyone from bringing food from outside.


Carnival Cinemas, Borivali: Popcorn costlier than cooked food
A large tub of popcorn (Rs 260) was the most expensive item at the food counter, steeper than cooked dishes such as chicken momos and rolls. The cheapest popcorn, that too hot and fresh out of the machine, that this reporter has come across comes in a small packet at Churchgate station for Rs 7. The caramel popcorn at the theatre did not skimp on caramel, but the cheese popcorn was almost bland, with no clear taste of cheese coming through.

A large cup (650 ml) of a soft drink cost Rs 170, which can easily come under Rs 50 outside.

In the fast food category, cheesy nachos with Mexican salsa and topped with French fries was the costliest at Rs 230. Both the quantity and the taste were satisfactory. A plate of samosa, which cost Rs 90, was fresh and tasty, but there are better samosas for far less outside.

The experience was partially worth the cost, considering that food and tickets for two can set your back by Rs 1,000. This was the same multiplex where the reporter was allowed to carry food in during the first test drive, but a Mirror staffer was stopped on Saturday.

AUG 11, Noon
TICKET PRICE: Rs 150
POPCORN AND SAMOSA: Rs 350
COST OUTSIDE: LESS THAN Rs 100


R Odeon Mall, Ghatkopar East: Slashed by ‘big margin’, yet not as afordable
A large cup (900 ml) of soft drink came for Rs 150. For a large tub of caramel and cheese popcorn, one will have to shell out another Rs 180. Outside, one has to pay only Rs 50 for beverage and Rs 60-70 for popcorn. Neither of them was worth the price. The carbonated drink tastes the same anywhere, and although the popcorn was fresh, one can get the same outside for half the price. Tarun Devnani, duty manager of the multiplex, said they reduced prices “by a big margin” recently. The mega tub (170 gm) of plain popcorn, which earlier cost Rs 330, is now around Rs 200 on weekdays, and Rs 250 on weekends and after 6 pm. “They become even cheaper during ‘happy hours’. We also have the facility of booking snacks online, which has special combos and offers.”

Aug 11, 5.25 PM
TICKET PRICE: Rs 225
POPCORN AND SOFT DRINK: Rs 330
COST OUTSIDE: Rs 120
Prices of other items: Packet of banana chips: Rs 60; veg puff: Rs 70; veg burger: Rs 130, 2 samosas: Rs 80; French fries: Rs 140; veg sandwich: Rs 130


INOX CR2 Mall, Nariman Point: Salty sandwich, costliest water 
Since this reporter went for the last show of the day, samosas and burgers were not available. There was a single samosa on display, but the staff was candid and kind enough to admit that it had gone bad. The last vada pav (Rs 140) was up for grabs, but customers who had purchased one before didn’t like it. From the little variety, a bottle of water (Rs 60 — the most expensive water on offer), a tub of caramel popcorn (Rs 280) and a paneer sandwich (Rs 210) was the safest bet. The same come at Rs 20 for a water bottle, Rs 100 for popcorn, and Rs 50 for a sandwich outside. The popcorn was good but the price left a bad taste in the mouth. The salty sandwich was nothing to write about. If these items were an indication of what is offered through the day, skip the food.

Aug 11, 10.45 PM
TICKET PRICE: Rs 430
WATER BOTTLE, POPCORN AND SANDWICH: Rs 550
COST OUTSIDE 170

Metro INOX, Marine Lines: Where chaat is six times costlier
During the interval, this reporter bought bhel puri, which cost Rs 150. Outside the theatre, the same can be bought for just Rs 25. A small tub of sukha bhel was also priced at Rs 150, 10 times more than what it costs elsewhere. In fact, all chaat items were overpriced, ranging from Rs 150-200.

A plate of two samosas — rather bland given the steep price — cost Rs 100, twice the price at which it’s available outside. A large turn of cheese popcorn went for Rs 280, in contrast to Rs 40 outside. That translates to a hike of 500 per cent. This reporter, too, ended up paying more for food items than the ticket, and none of it made it a worthwhile movie-going experience.

Aug 11, 7.45 PM
TICKET PRICE: Rs 350
BHEL PURI, 2 SAMOSAS AND POPCORN: Rs 530
COST OUTSIDE: Rs 115


PVR Phoenix, Lower Parel
A no-frills tub of regular popcorn (55 gm) costs Rs 240. One can buy the same outside for just Rs 40. That’s a 500 per cent hike, and this was just plain salted popcorn. A large cheese caramel popcorn costs Rs 500.

A glass of soft drink (600 ml) was charged at Rs 240. A 500 ml bottle of the same costs Rs 40 outside. For the price this correspondent paid, he could have bought 3 litres of the same soft drink outside. Again, this is a 500 per cent hike.

Then came the humble samosa. A plate of two samosas cost Rs 95; outside the mall, one can get the same for Rs 40 a plate. The taste was no different from what one gets outside. Together, the soft drink, samosas and popcorn cost more than the ticket itself. The food is not worth the price. Given a choice, take your own chow.

The new owner of the theatre chain wants to enhance the cinema-going experience.
Roshmilla Bhattacharya (MUMBAI MIRROR; December 16, 2014)

On August 11, Mirror reported that Carnival Group from Kochi, Malaysian Group Navis and the Chennai-based Satyam Group, along with PVR and Inox, are in contention for a merger with Reliance MediaWorks (RMW) which controls the theatre chain, Big Cinemas.

At that time Daljeet S Singh, the RMW spokesperson, had said that there were no plans to sell the chain.

However, on Monday, RMW announced that in an attempt to reduce Reliance Capital's overall debt by around Rs 700 crore, it had sold its multiplex business, excluding IMAX Wadala, to Carnival Cinemas. This development makes Carnival one of the top three multiplex players in India, with over 300 screens across the country.

Shrikant Bhasi, Chairman, Carnival Group, revealed that their target is to have 1,000 screens by 2017. "We are in talks with a couple of other multiplex chains and aim to be No 2 by the end of this financial year," Bhasi asserted.

In July, the group had acquired HDIL's multiplex chain Broadway Cinemas for Rs 11 crore as part of its expansion.

In an interview Bhasi had promised "value for money" to patrons. When quizzed on how he plans to outscore his bigger rivals, PVR and Inox, Bhasi said: "More than the metros, our focus is on the tier II and tier III cities. With food courts, cafes and entertainment centres for kids, our theatres will offer families a complete package that goes beyond just watching a movie. We want to turn the cinema viewing experience into a carnival."

The corporate has also forayed into movie production, exhibition and distribution. They have produced four Malayalam movies and two Hindi films and plan to invest in more movies in the future.

Bhasi also has some surprises in store for his Mumbai customers. Although he remained tight-lipped on details, he said: "We plan to up the entertainment quotient of cinema-going with interesting add-ons."