Advance bookings for Ranbir Kapoor’s Ramayana are 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 underway. If both sides reach an agreement, bookings could open at these theatres as well.
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, and negotiations are continuing.
The demand has also triggered a debate over the revenue-sharing system in North India. Supporters of the distributors argue that multiplex sharing terms have been unfair for too long. They question why exhibitors should continue to retain such a large share of theatrical revenue while producers and distributors carry much of the financial risk.
Their argument is that after the fourth week, distributors and producers often receive only 30% or less of net collections. If exhibitors continue to take the lion’s share of revenue in the later weeks, what incentive do producers have to invest in ambitious films designed for a long theatrical run?
Considering Ramayana‘s reported Rs. 4000 crores budget across two parts, along with the enormous effort involved in creating such an epic, supporters believe Namit Malhotra and the distributors deserve a 60% share in the first week and better terms in subsequent weeks.
They argue that exhibitors also benefit when big films bring audiences to theatres, and better sharing terms could encourage more producers to invest in large-scale cinematic spectacles.
The exhibitors, however, have yet to accept the proposed terms. The outcome of these negotiations could affect not just Ramayana’s advance bookings but also the theatrical revenue sharing for big-budget films in the future.
