The Hindu : Kerala News : Film industry heading for yet another crisis

Online edition of India's National Newspaper
Monday, Mar 21, 2005

Kerala

Kerala

Film industry heading for yet another crisis

By N.J. Nair

THIRUVANANTHAPURAM, March 20. The Malayalam film industry is heading for yet another crisis with distributors deciding against releasing new films in theatres which refuse to comply with their demands from Friday.

According to industry sources here, the Film Distributors' Association (Kerala) has decided to take a firm stand since the exhibitors turned down requests to hold discussions to sort out pending issues.

The industry had wrested major concessions from the Government last year. The service tax was hiked from Re.1 to Rs.2 per ticket and the entertainment tax was fixed at 25 per cent in corporation limits, 20 per cent in municipalities and 15 per cent in panchayats. The exhibitors are now collecting Rs.5 as reservation charge for a ticket. Following the tax revision, the distributors had urged the exhibitors to increase the daily allowance for film representatives from Rs.115 to Rs.125. They had also demanded to increase the exhibitors' share in publicity for all films in the corporation limits from 4.5 to 7.5 per cent and 10 per cent in municipalities.

Distributors' demand

The distributors have also demanded 50 per cent of the reservation charge levied by the exhibitors. The association has disputed the manner in which the exhibitors decide to hold over films. The distributors' demand is that till a Malayalam film gets held over due to fall in collection, their share should be fixed at 60 per cent in air-conditioned theatres and 65 per cent in non-A/C theatres. This should be fixed at 55 and 60 per cent respectively for all other films. Moreover, a film should not be held over on days when there is a vehicle bandh, bus strike or telecast of one-day cricket match as all these would have a direct bearing on the collection.

Though the industry has obtained concessions from the Government, the benefits have not been passed on to the public, producers or distributors. Immediately after granting concessions, it was decided that a system would be in place to monitor the upkeep of theatres. The 100 per cent hike in service charge was granted for the maintenance of the theatres. But the condition of most of the cinema houses is far from satisfactory. Hence, people, especially families, are reluctant to come to theatres, the sources said.

The repeated requests of the association to hold discussions have been turned down by the exhibitors, saying that all pending issues can be discussed only with the Kerala Film Chamber. But the distributors as well as the producers who support them are unwilling to involve the chamber for mediations.

Following a special general body meeting held on February 26, the association general secretary, Jose C. Mundadan, has issued a circular to the members not to give films to exhibitors who fail to comply with its demands. Mr. Mundadan has asked the members to present the daily collection report of new releases from Friday to the association.

He has also warned the members with disciplinary action and compensation if they fail to go by the directives.

Any delay in settling the row would affect the release of films during Vishu, the sources added.

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