What is the reason for the strike?
Producers want a 50:50 revenue share from multiplex owners. Multiplex owners, on the other hand, say that they will agree to that kind of revenue sharing only if the film does well at the box office. If it flops, the concerned producer must bear the losses to a larger extent. So the revenue sharing could become 45:55 or even 40:60. What is the producers’ argument? They claim that they are the ones taking the risk in making films. They do the spending from the cost of production to the cost of marketing where as multiplex owners just have to showcase their films. So why should they have to take the entire brunt of the films’ failure? In Western countries, producers and multiplex owners have a 50:50 revenue sharing plan. What is the multiplex owners’ argument? Multiplex owners claim that the situation in the West cannot be applied here. Multiplexes are a relatively new phenomenon here, and yet to stabilise themselves in India. They need time to get the returns on their huge investments.
