Ramayana Controversy: Warnings of Bigger Industry Damage

Advance bookings for Bollywood’s magnum opus Ramayana were set to open today (October 20) at national multiplex chains PVR, Inox, and Cinepolis.

However, bookings at non-national chains and single screens may take longer, as negotiations over distributor sharing terms are still not finalized.

The main issue is the distributors’ demand for a 60% share in the first week, followed by 50% in the second week and 40% in the third week.

The usual sharing structure for big-budget films is 52.5% in the first week, 45% in the second week and 37.5% in the third week. While the distributor’s share can reach 55% in certain cases, the demand for 60% is significantly higher.

Exhibitors are reportedly unwilling to accept the proposed terms. Now, leading exhibitor Vishek Chauhan has raised several questions about the demand by Dharma Movies and Namit Malhotra.

According to social media, Vishek has questioned whether the budget and scale of a film should determine its revenue share. If Ramayana deserves a 60% share because it is a magnum opus made on a massive budget, should smaller films like Udta Teer and Prahaar get only 40% in the first week? He asked whether producers and distributors would accept such a system.

Second, if a film’s buzz and box-office performance determine the share, Vishek Chauhan argues that hit films should get 60%, while flop films should get only 40%. He pointed out that nearly 90% of films in India fail to make money, yet exhibitors pay the standard 50-52% share even for films that collect very little.

Third, he warned that Ramayana may not be the biggest film in the future. If distributors of bigger films start demanding 65-70%, changing the terms for every film could create more conflict across the industry. He believes the existing uniform revenue-sharing structure is better for everyone.

Finally, Vishek Chauhan highlighted India’s shortage of cinema screens compared with other major countries. He warned that pressuring exhibitors could discourage investment in new screens and even force some existing theatres to shut down. Fewer screens would ultimately hurt producers and content creators by reducing opportunities to showcase their films.

The debate over Ramayana’s distribution terms has now raised a bigger question: should a film’s scale determine its share, or should the industry retain a common revenue-sharing structure for all films?