The Hindu : Tamil Nadu / Chennai News : Theatre owners to approach government to urge film industry to bring down production cost

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Tuesday, Jun 29, 2010
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Tamil Nadu

Tamil Nadu - Chennai

Theatre owners to approach government to urge film industry to bring down production cost

S. Aishwarya

Cinema owners have the ability to lure audiences by providing new facilities
Weekends are the only time when the occupancy is high, says administrator of multiplex

CHENNAI: What happens when the much-hyped films of top-slot actors bomb at the box-office? Producers run the risk of heavy financial losses, while theatre-owners say that, with their livelihood closely linked to the fate of each film, the failures make them have a relook at their business strategies.

While there is not much that the theatres on their own can do to promote a film, what is within the grasp of the cinema owners is the ability to lure audiences by providing new facilities.

For various reasons, Chennai has been a witness to fast-disappearing theatres that were once celebrated for screening blockbusters. Owners of some of the theatres, who were able to see the writing on the wall, quickly went for a makeover of the facilities. Moving away from the single screen concept, a few opted for multi-screens and malls at the same location.

According to industry sources, a string of much-hyped films not faring up to expectations is only bound to fuel this trend further as production costs of movies with top slot actors soar.

Vijay-starrer ‘Sura' is one such film that saw theatre-owners demanding compensation for their financial losses.

Apart from triggering voices of protest, it also again turned the spotlight on the demand of theatre owners for a more realistic pricing of the films.

Distribution prices

R. Ramanujam, a member of the Tamil Nadu Theatre Owners Association, says the distribution prices for big-banner films are fixed based on 100 per cent occupancy in every theatre. “But on an average, the theatres only have 35 per cent occupancy. There are nearly 1,000 theatres in the State. Every single theatre suffers huge losses because of this,” he says.

While multiplexes make profits by their value-added services such as food court and game zones, single-screen theatres are the ones that are severely hit. “Providing free drinking water facility in theatres is mandatory as per government norms. But most of the multiplexes flout the rule and sell packaged drinking water at a premium. They are left with no options as the films, as such, earn no profit,” Mr. Ramanujam says.

As an administrator of a multiplex puts it: “Weekends are the only time when the occupancy is high. We run with 15 per cent occupancy on other days. Maintenance cost is also more for multiplexes than for single-screen theatres.”

The TN Theatre Owners Association has decided to approach the government to urge the film industry to bring down the production cost.

“By cutting down the production expenses, the rate of films would come down. A few lakh rupees less spent on each film could save our livelihood,” association secretary ‘Trichy' Sridhar says.

“There have been many cases like ‘Sura.' When we demand compensation from the heroes and producers after a film does badly, it is purely on humanitarian grounds,” says an office-bearer of the association.

“Actors such as Rajinikanth and Kamal Haasan, and directors such as Mani Ratnam have compensated us when their films did not do well,” Mr. Sridhar says. Considering that not all actors and producers can afford to do, the theatre owners continue to take risks.

For those on the brink of bankruptcy, the storyline waits for a white knight.

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