PVR INOX Proposal: Big Relief for Tollywood Producers?

PVR INOX proposes changes to VPF fees

PVR INOX has proposed ending the Virtual Print Fee (VPF) system and removing the need for a big upfront payment from producers. The Competition Commission of India (CCI) has now invited public comments on the proposal. If the CCI accepts it, the new system could start within 120 days.

This development is particularly important for Tollywood. The VPF issue has been a point of conflict between Telugu producers, distributors and multiplexes for the last few years.

In June last year, the producers and distributors’ sub-committee dealing with Telugu film exhibition submitted its rules and demands to the Telugu Film Chamber of Commerce. The VPF issue was also clearly mentioned.

The committee demanded transparency in VPF and Digital Service Provider (DSP) charges and called for pending disputes to be resolved immediately.

So, what exactly is VPF?

In simple terms, VPF is a charge that cinemas collect from producers for screening digital films. Producers have traditionally had to pay this charge when their films are played on screens.

The problem is that a big film releasing on hundreds of screens can end up with a huge VPF bill. This adds another major cost burden even before the film starts recovering its investment.

Now PVR INOX is proposing a different system.

Producers would get two choices. The first is to pay Rs. 450 per show on regular screens and Rs. 600 on premium screens such as IMAX and 4DX. After 60 shows, the charges would come down to Rs. 250 and Rs. 350.

The second option is to avoid this show-based payment. Instead, PVR INOX could reduce the producer’s share of net box-office collections by up to 7.5%.

The biggest change is that there would be no large VPF payment upfront.

For Tollywood producers, especially those making small and medium-budget films, this could be a significant change. The old VPF system has been a long-running issue, and this proposal could finally offer a different way forward.

For audiences, there may be no immediate change in ticket prices.

But for the Telugu film industry, this could be an important development. After years of arguments over VPF, the issue has now reached a point where the existing system itself could change.

Now, everyone will be watching what the CCI decides.