Film industry at loss, blame game goes on

The standoff between the film producers in Tamil Nadu and Digital Service Providers, which is continuing despite a couple of rounds of discussions in Hyderabad and Bengaluru, has not only piled on losses for the producers, but has also hit the theatre owners and distributors hard.  

Incidentally, the other language industries have managed to reach a compromise with the DSPs. However, the producers in Tamil Nadu are dissatisfied with the 10 per cent discount that they were offered, and this dispute has prevented new releases from hitting the screens since March 1.

QUBE, one of the service providers, said they have stopped charging the producers per screening after the latest round of negotiations. The revised rate for producers and distributors across the state was announced on Monday. 

“From now on, we will charge them based on the theatrical run. Moreover, we have agreed to offer them a discount to a minimum of 18 per cent and a maximum of 23 per cent. What they are paying us is the usage fee that is a nominal sum. Despite investing Rs 450 crore, we haven’t increased a single penny in the last decade and all our charges are on record,” said Senthilkumar, the co-founder of QUBE. 

Ever since the strike began on March 1, the industry has incurred a loss of Rs 40 crore, he claimed. 

“This is more than the fee they pay us. Also, we charge Rs 10,000 for a Hollywood film because we have tie ups with those studios. They pay us the mastery and delivering charges as well. So, the information from the council is misleading. We hope the situation changes and movies are cleared for releases soon,” Senthilkumar added. 

Speaking to DT Next, the president of Tamil Nadu film Producers’ Council Vishal Krishna said, “Digital projectors were purchased at a huge sum a few years ago in the name of Virtual Print Fee (VPF), and we were paying a hefty fee in order to sustain a decent theatrical run for the films. Before moving to digital screening from print, we were promised that there will be a drop in VPF. However, we pay between Rs 25 lakh to 30 lakh across screens and theatres per film for a month. This is like paying EMI for a car or a house that we already own. This is absurd and we want this to stop,” he said. 

Standing firm on the decision to continue the strike till films are allowed to be screened free of cost, Vishal sought a sunset clause in the contract with the DSPs. “Or else, we will bring in players from other states. We will not agree for anything less,” said the actor-producer. 

Caught in the midst of this dispute that has led to severe losses, theatre owners and distributors have not joined hands with the producers and have instead decided to re-release older films like Mersal, Vedalam and Vinnai Thandi Varuvaaya. 

Tirupur Subramaniam, an office bearer of Tamil Nadu Distributors Association said the industry is facing huge losses because of the ongoing crisis. 

“The move has backfired on the industry from all sides. I agree that the producers are facing losses, but what they demand is absolutely pointless. Just because DSP has recovered the amount they have paid for digital projectors doesn’t mean that they should stop paying for the services they do. The agreement has several laws and bylaws and we should be following it,” he said. 

The demands put forth by the producers were “baseless”, Subramaniam said, and added: “When the neighbouring states understand the situation and have called off the strike, why aren’t our producers happy with 10 per cent? Who will pay the interest for 44 films that are yet to see the light of the day?” 

The new digital player, K Sera Sera, is economical and charge only Rs 700 to 800 per screening. “But they will only provide poor experience for the audience as they are not trustworthy like QUBE,” he added.