Showing posts with label Deepak Asher. Show all posts
Showing posts with label Deepak Asher. Show all posts
Cinemas bracing for ‘seat distancing’ after lockdown
8:43 AM
Mohua Das (THE TIMES OF INDIA; May 10, 2020)
Theaters faded to black and movies vanished from the box office as the Coronavirus turned into a massive speed bump for the burgeoning movie exhibition industry of nearly 9,600 screens in the country. After all, cinema houses are about large numbers of people huddled together, just inches away from each other.
“The pandemic has left a massive impact on the cinema exhibition industry. Movie releases are deferred, operations are shut, inflow of cash has entirely stopped. The industry has faced various crises in its history, but what it is going through was not envisaged,” said Alok Tandon, CEO, Inox Leisure, a multiplex chain with screens across 68 cities.
“Movie theatres were one of the first public spaces to shut with no visibility on when we might reopen. Most multiplexes were on a growth trajectory with funds deployed in new multiplexes which have all come to a sudden halt,” rued Sanjeev Bijli, joint managing director, PVR Cinemas.
The Multiplex Association of India (MAI), that represents around 90% of the multiplex industry in India, made an appeal to landlords in March asking for a “complete waiver from payment of rent & common area maintenance dues during the lockdown and recuperating period,” while multiplexes like Inox and PVR have already invoked the force majeure clause to their developers, to tide over the pandemic. In another plea last week, MAI urged studios, producers and content creators to respect “exclusive theatrical window” — holding and releasing their films in theatres, once they open again before opting for broader distribution, such as release on DVD, satellite channels or streaming platforms.
“This temporary relief would ensure that the cinema industry does not die an instant death leaving a significant impact on shopping malls across the country, millions of lost jobs and unwanted litigation,” explained Deepak Asher, president of MAI.
The challenge is trickier for single screen theatres that have been battling depleting revenues for years. Nitin Datar of Cinema Owners & Exhibitors Association of India (COEAI) wrote to the chief minister’s office last week appealing for “waiver on property tax” and “sharing of 70% of staff salary” to prevent retrenchment.
But even as the movie theatre business cracks under the pressure of uncertainty — with revenues of at least Rs 1,500 crore a month plummeting to zero — movie operators believe that the charm of a larger-than-life screen and people’s desire to step out will remain intact.
If history is anything to go by, many a thing has threatened movie theatres in the past — the 1918 Spanish flu, war-time restrictions, invention of television, VCRs, the Internet, and more recently the streaming platforms — yet, like a phoenix, the big screen has always found its way to rise and cope. “Because it’s integral to our social fabric,” pointed out Bijli.
Preparing to re-emerge in a world where physical distancing is crucial to survival, both multiplexes and standalone theatres are devising a chapter that will be different from what was built as a communal experience.
Apart from thermo-guns, sanitiser stations, hygiene kits, paperless transactions, and rigorous disinfecting procedures everyday, multiplexes like Inox and PVR will introduce seat distancing through “cross-allocation” of seats. “The model ensures that there’d be no one seated behind, ahead, or adjacent to the seat assigned to a guest. Online booking will be programmed to allocate seats in that order. Movie shows would be scheduled in a manner to avoid overlap of entry, intermissions and exits and to avoid crowding of lobbies and restrooms,” explained Tandon.
“The menu will be truncated to ‘hero’ items — popcorn, cola and nachos, that can be machine dispensed,” said Bijli, adding that “although it is difficult to contemplate the future, it’s reassuring when we look at China, Sweden, Korea and America that recently re-opened a limited number of theatres. We’re in touch with the Global Cinema Federation and trying to set protocols according to their standards.”
Apart from assuring seat distancing in standalone cinemas, COEAI has also urged the government for an interest-free loan of Rs 50,000 for each owner of ‘touring talkies’ — a dwindling exhibition culture of travelling theatres in rural areas — that now fears total extinction under the weight of the virus.
Movie tickets of Ranveer Singh's Simmba could cost Rs.25 less from January 1, 2019
8:12 AM
Close to his film’s release, revised GST brings film ticket rates down by eight per cent on an average
Himesh Mankad (MUMBAI MIRROR; December 24, 2018)
The reduction in GST from 28 per cent to 18 per cent for film tickets costing more than Rs 100, and from 18 per cent to 12 per cent for those upto Rs 100 means that film buffs will need to shell out less for a ticket to the next Bollywood offering which happens to be the Ranveer Singh-Sara Ali Khan-starrer Simmba. The revised slabs will be applicable from January 1 and exhibitors reveal that on an average, the ticket prices will come down by approximately Rs 25 from the new year.
“We hope this will increase the footfalls,” saida relieved Deepak Asher, Director of Inox, and, the president of the Multiplex Association of India, while PV Sunil of Carnival Cinemas added, “It is a big relief for the industry and a victory for common man.”
Raj Bansal, the director at a three-screen multiplex, Entertainment Paradise, in Jaipur is happy to pass on this “effective benefit of around 8 per cent” to the viewer. “The tickets for Simmba will be cheaper than other films under the blockbuster slab from January 1,” he promises, adding that makers of Simmba were looking to release the film a day earlier on December 27 to cash in on the festive cheer. “But later, we were informed that the film would release as scheduled on Friday, December 28.”
Vishek Chauhan, owner of Roopbani Cinema in Bihar, confirms the news, saying, “Yes, team Simmba was looking to increase it revenue by releasing a day early, we even got new posters and publicity material announcing the new date. But the exhibitors pushed them back as they didn’t want to over-burden their programming team by re-scheduling shows at the last minute.”
In this positive scenario, trade analyst Girish Johar sounds a word of caution. “While on an average, the ticket prices should come down by 7-8 per cent, as it happened in the past, cinema owners did not reduce the ticket prices, rather they increased the net amount on which tax is levied with the result that the audience did not reap the benefit. I hope that won’t happen this time,” he avers.
A trip to the theatre may become more pocket-friendly for Mumbaikars soon
8:03 AM
With the government’s latest directive, cinegoers are hoping that from August 1, they will be allowed to carry food from outside into theatres, and buy eatables like popcorn and samosa at a lesser price from counters inside the premises
Rachana Dubey (BOMBAY TIMES; July 15, 2018)
The Maharashtra Government on Friday stated that moviegoers can’t be stopped from carrying outside food into multiplexes, and that from August 1, it will impose a ban on the dual MRP (maximum retail price) for packaged food and drinks. The move, if imposed, will not only allow moviegoers to carry food bought from outside into theatres, but also considerably reduce the price of eatables sold inside multiplexes.
While Mumbaikars are welcoming the move, the Multiplex Association of India (MAI) is opposed to it. In fact, a case on the matter, in which the MAI is also a party, is already pending before the Bombay High Court, and it’s scheduled to be heard on 25 July.
While the exorbitant prices of food items at multiplexes have always raised concerns, the issue once again grabbed headlines two weeks ago, when a Pune multiplex employee was publically thrashed by the workers of the Maharashtra Navnirman Sena (MNS). Amey Khopkar of MNS Chitrapat Sena told us, “It’s a great move by the state government, but implementation is the key. Multiplexes should be forced to follow the directive. They were previously directed to compulsorily screen Marathi movies in at least one of their screens, but that has not been followed in most places. This directive at least should be implemented and the licences of defaulters should be snatched away.”
WILL THE STATE DIRECTIVE ON CARRYING FOOD INSIDE THEATRES BE IMPLEMENTED?
On the other hand, Deepak Asher, President, MAI, said, “Since the matter is currently sub-judice, and since we have no other formal communication from any regulatory authority, we would not like to comment any further on the matter.”
Nitin Datar, President, The Cinema Owners and Exhibitors Association of India, prefers to wait and watch. “The 1966 rule, which the Maharashtra Government has cited, is silent on carrying food inside and was passed when multiplexes didn’t exist. There is a grey area here, and I’m keen to know what’s there in this order for single screens, because the food at these places is priced moderately. I hope there is nothing in it for us that burdens single screens and forces them to hike ticket costs or the prices of food,” he said.
MUMBAIKARS REJOICE
Despite the air of uncertainty, Mumbaikars seem happy about the move. However, some of them also have concerns that cleanliness of the auditoria might go for a six if people drop food and wafer packets on the floor.
Anjali Damani, a choreographer, said, “I welcome this move, it’s high time something like this came into practice. There have been so many occasions when my husband and I have gone to a multiplex and have spent more on snacks and coffee than the tickets. Reducing the price of the basic items will be a huge relief for people like us. My only worry is that the tickets might get even more expensive now, because that is the easiest means to make up for losses.”
Historian Deepak Rao added, “My son and grandson either eat at home and go for the movie, or eat at a restaurant after the movie, which makes more sense from the spender’s point of view. Buying snacks inside the theatre is a waste of money. They almost loot the public.”
Namrata Kaur, an insurance professional and the mother of a school-goer, was concerned about the quantity of food that people would be allowed to carry inside. “I think this is a good move, but it needs a lot of clarity in terms of the dos and don’ts for the aam junta. For instance, if a family of 10 heads to the movies, how much food will we be allowed to carry? Is there a cap on how much we can carry per head? Also, certain food items have peculiar smells which some people may find repulsive. So, will they specify what food items are allowed? It would be much nicer if the theatre owners just brought down the price of food sold inside plexes, that alone would be a huge relief,” she opined.
Ruchi Saxena, a chef at a five-star, noted that though the exercise is wellintended, it has to be implemented gradually. “I have two kids and whenever we go out for a movie, they demand a tub of popcorn or samosas. Tickets are costly, but the auditoria are clean and there’s only a certain kind of dry food sold at these places. Maybe, the directive can be implemented in two stages — first, reduce the prices and then declare which items patrons can bring along with them,” she explained.
Vishal Doiphode, an advertising professional, had a word of caution. “I was appalled when I read about the Pune incident. It’s great that in two weeks, the government has issued a directive, but will the high-tax paying multiplexes really be penalised if they disallow patrons from carrying their food inside? Only time can tell how effectively this directive is implemented. We shouldn’t get too happy right now,” he summed up.
THE GOVERNMENT DIRECTIVE
Ravindra Chavan, the Junior Minister for Food and Civil Supplies, said that according to the Maharashtra Cinemas (Regulation) Rules, 1966, cinemas cannot prohibit consumers from carrying food and action will be taken against those who do not allow it. The ban on dual pricing, a practice of charging different prices for the same product in different places, will be brought into force from August 1. In response, the Multiplex Association of India has stated in its official letter that none of the multiplex cinema theatres operated by any of their members had received any order, notification or communication with respect to the directive from the Government of Maharashtra or any other regulatory authority. This was their stance till the time we went to press.
Varun Dhawan's Judwaa 2 affected due to strike of Chennai multiplexes
8:02 AM
Bharati Dubey (DNA; October 4, 2017)
All multiplexes operating in the jurisdiction of Chennai Corporation have gone on strike. This is in response to the Greater Chennai Corporation levying local body entertainment tax of 20 per cent on non-Tamil films and 10 per cent on Tamil films.
Deepak Asher of Multiplex Association of India has issued a statement saying, “We most humbly appeal to the Chief Minister of Tamil Nadu and commission of Chennai Corporation to consider our request favourably and withdraw the LBET levied on the film exhibition industry in Chennai immediately.’’
Asher said, “The withdrawal will ensure the survival of the film industry and will support an environment of safe, secure and wholesome entertainment option for the people of Chennai.’’
Trade pundits feel the sudden strike by the multiplexes is bound to affect the business of Judwaa 2 which has released last week and Spyder too. A source said, “About two to three per cent of the business of Hindi films comes from Tamil Nadu so business of Judwaa 2 will get affected and Spyder which is doing extremely well at the box office will also take a beating.’’
The impact of GST will deliver a big blow to the movie industry
8:06 AM
While the film industry is divided over the revised GST rates on movie tickets, BT delves into the matter to find what's on the minds of the movers and shakers...
Rachana Dubey (BOMBAY TIMES; June 14, 2017)
With the Goods and Services
Tax (GST) implemented from July 1, getting watching movies might turn
out to be a costlier affair in several parts of the country. Initially, a flat GST of 28% was levied on all movie tickets, regardless of their price. However, on Sunday, Union Finance Minister Arun Jaitley announced
revised GST rates, where in tickets costing Rs 100 and below were brought
under the 18% slab, while those costing higher than Rs 100 will continue
to fall in the 28% slab. While the industry feels that the rates are
still very high, what has irked
them even more is the possible implementation of a local body tax (LBT),
which will vary across the country, making movies the only
product/service with dual taxation. However, levying LBT is at the
discretion of individual states. For example, while reports suggest that
states like Maharashtra, Gujarat and Rajasthan are already empowering
their local bodies to levy entertainment tax over and above the GST,
states like Kerala have decided against the idea.
18% IS TOO SMALL A RELIEF
Associations representing single-screen owners and multiplex chains met Maharashtra Finance Minister Sudhir Mungantiwar on Monday, to discuss the implementation of the new taxation scheme among other things. Nitin Datar, President of COEAI (Cinema Owners and Exhibitors Association of India), who was at the meeting, told BT, “Some exhibitors are happy that GST rates have been revised; it will bring in some uniformity in the tax structure. Earlier, while some states didn't levy any entertainment tax, some were levying 45% or more. However, smaller centres, where the tax rates were much lower than 18%, are likely to feel the heat. Of the 2,100 films made in India annually, only 400 are in Hindi. The rest are all regional films, of which few make a mark at the box office, despite being tax-free. Regional films across the country will be in a mess because for them, 18% and 28% are still very high figures. They shouldn't have been taxed over 5%, given that they incur more losses than profits. Regional producers employ so many people despite their losses. For them, it will now be a fight for survival. Also, there's no clarity on the structure and implementation of local body taxes either.“
Deepak Asher, President, Multiplex Association of India, says that 18% GST on cinema tickets priced under Rs 100 is too small a relief. The mathematics is simple: Tickets priced below Rs 100 form roughly 10% of the total number sold, which is around 6% of the revenue. Also, with the current rate of tax on cinema exhibition across India being around 19.5%, the new rates can prove to be detrimental, especially when they're clubbed with local body taxes. He rues, “We are grossly disappointed because this will hamper growth. Cinema halls across the country have been downing shutters over the last two-three years, even in states where the tax rates were lower than 18%. Regional films that were so far exempted from entertainment tax will land in a suicidal situation with the new tax regime. Smaller multiplexes in the interiors depend on these movies. What will they do? We also have to pay an additional entertainment tax that the local municipal bodies will levy, depending on various factors. Where does that leave us?“
HIKING TICKET RATES NOT AN OPTION
Modest estimates suggest that India approximately has 9,000 screens, of which roughly 4,000 are in the Southern states of Tamil Nadu, Kerala, Andhra Pradesh, Karnataka and Telangana, where most movies screened are in regional languages. Asher continues, “On multiple occasions, we requested that cinema be taxed lightly because it helps generate income, employment, add more screens and check piracy and black marketing. However, not only have we been placed in the 'sin industry' bracket, we have also been taxed heavily in two layers. And, we can't even escalate ticket prices beyond a point because that will affect consumer footfall. Only when we have more clarity on local body taxes can we decide the way forward.“
If the municipal bodies choose to do away with the local body taxes, cine-goers in states like Maharashtra and Delhi could gain from the 28% GST rate, since the existing rate in these states is around 38% to 40% on an average. On the other hand, it will have an adverse effect on states like Punjab, Andhra Pradesh, Telangana, Gujarat and Chhattisgarh where the rates were much lower before. Vikram Malhotra, producer of movies like Noor and Airlift, says, “The government has missed the only chance it had; they could have corrected so many flaws in the existing tax structure. To begin with, this is an expensive business, with very little scope to cut corners. Talent is the costliest element in my scheme of things and since it's based on an individual's demand and supply, I can't tackle its cost. For producers, it's a squeeze situation - we can't pass on our cost pressure to the audience, we have to tackle organic industry competition from every corner and grapple with dual taxation as well.“
INDUSTRY SIDELINED
A few days prior to meeting the state Finance Minister, a delegation comprising studio honchos, producer bodies and Censor Board chief Pahlaj Nihalani had met Maharashtra Chief Minister Devendra Fadnavis and Union Minister Venkaiah Naidu, requesting some relief for the entertainment industry. Filmmaker Mukesh Bhatt, the former chief of the Film and Television Producers' Guild of India, says, “Successive governments were made aware of our situation, but nobody has done anything for us. How much tax do they expect us to pay when the business isn't as great as they think it is? Most countries in the world don't tax their entertainment industry the way we do. With this so-called One Country One Tax scheme, they will ensure that our industry dies of breathlessness. Eventually, dubbed Hollywood films will take over.“
In fact, over the last couple of weeks, representations have been made to various power lobbies to ensure that the film industry doesn't fall under heavy taxation, but in vain. Siddharth Roy Kapur, the current chief of the filmmakers' guild, says, “The industry does appreciate the revision the GST slab on cinema tickets. However, we believe that the Indian film sector deserves to be taxed at a much lower rate to encourage further investment, employment and growth, which in turn will lead to higher tax revenues for the government. We also urge local bodies across the country to avoid imposing additional entertainment taxes.“
Arjun N Kapoor, who has produced Rustom, points out how America has used films to establish its supremacy in the space of art and culture. “I don't know why our government doesn't see that potential in our films. If the tax structure was friendlier, we could do so much with our stories. Besides, we'd also contribute immensely in the space of employment and revenues.“
Producer-distributor N R Pachisia, who was also part of the delegation that had met Fadnavis earlier, says, “I'm glad to see Arun Jaitley help the film industry with revised GST rates. Though the government has been considerate, the final impact is yet to be seen. States like Punjab had no entertainment tax so far. While Marathi and Tamil cinema had tax exemptions, tax was nominal for Telugu and Bengali cinema. With the new rates ready to be implemented, we'll have to wait and watch how the situation unfolds.“
SOUTH INDUSTRY RAISES CONCERNS
Abirami Ramanathan (president, Tamil Film Chamber of Commerce and president, Chennai Theatre Owners Association) believes that the proposed GST wouldn't impact Tamil cinema to a large extent. He says, “Only a few theatres in the city charge Rs 120 per ticket. It's less than Rs 100 at the remaining cinema halls. So, I don't think the new GST will affect the business.“
However, actor Vishal (president, Tamil Film Producers Council, and general secretary, South Indian Artistes' Association) feels that price revision is necessary to cushion the impact of the new GST rates. He says, “We will appeal to the state government to remove the cap on ticketing to break even. Since 2009, there has been no revision in ticket rates (the maximum that a multiplex can charge is Rs 120). Of course, certain movies enjoy tax benefits (Thirty per cent entertainment tax is waived off for films that are titled in pure Tamil and have procured U certificate), but the fraction is quite nominal. I believe that theatre owners and distributors should be allowed to decide the price of tickets of every film - big or small - according to its capabilities. In Telangana, the government had announced flexible pricing policy to not burden the audience. For instance, if it's a Rajinikanth film, everyone would want to see it in the first three days, irrespective of the price. So, we should be able to increase the rates during the weekends and bring it down on weekdays so that the other section of audience can watch it, too. Also, we should focus more on the transparency in BO collections. These two moves should help us tackle GST.“
A senior member from the Kannada Film Producers' Association said, “While the reduction of GST on single screens comes as a temporary relief, we have a bigger problem to contend with. Till now, our films were completely exempted from taxes, but with the multiplexes having the same tax rates for all languages, it will hit our consumers harder. We still are wondering how to get this problem sorted.“ The Kannada film industry is hoping to ask the state government to waive off their share of the GST, given how the new tax will be equally split between the Centre and the state. Whether the state government will continue to lend its support to the local industry is the current topic of concern in Sandalwood.
-Lakshmi.V@timesgroup.com and Sunayana.Suresh@timesgroup.com
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