Multiplex war!

So what's happening in Bollywood land? I know I predicted that the multiplex owners are gonna give in a week after the boycott (or better known as the 'pipeline repair work') was announced by the producers, but it seems that the owners have more resilience than I thought they had. Or maybe the 2% extra is really a lot of money, since they're fighting tooth and nail for it. Now the producers are talking about returning to the single screens.

I wonder how this will change the landscape of the hindi film industry. Multiplex changed it before by doing a good job in bringing a lot of moollah for everyone. The fact that all parties are being stubborn about this suggests to me that there must be another story to it than just dollars and cents. But I'm an ardent subscriber to conspiracy theories and am paranoid by nature, so I might be wrong.

What these people need is a 3rd party at the negotiating table. I don't care how this silence will end but if I were deprived from watching MNIK, Ra-1, Happy New Year & Don 2 this year and next because the pipeline has to suffer more downtime, I'm not going to be very pleased.

By Bindu Rai on Saturday, May 09, 2009

It's been 38 days since Bollywood fans gorged on their weekly diet of high-laced drama and that seasonal mix of musical kitsch.

Any enterprising producer could build a big-budget movie based on such gripping circumstances. But unlike reel-life, reality bites and the world's biggest film industry is learning this the hard way.

Swallowing losses worth Rs500 million (Dh37m) since the April 3 production strike, new Bollywood releases have grinded to a halt in the war against India's multiplex cinema owners over revenue sharing; filmmakers are demanding a 50 per cent share in total profits, while multiplexes agree to that number for the opening week.

That figure increases two-fold when you factor in auxiliary industries like hoardings, public relations and television advertising. Analysts predict, if not resolved soon, the industry stands to lose over Rs2.5 billion in the upcoming high stakes game of summer blockbuster glory.

After a closed-door meeting between the warring parties went bust on Tuesday, Bollywood added this blow to the growing credit crisis that has crippled the industry with a drastic 30 to 40 per cent drop in new films being produced – a case of investors keeping their purses closed.

The question begs to be asked: Is it lights out for big-budget Bollywood glam?

Not quite yet. Producers will now take a cut in profit by releasing new films in single-screen theatres across India.

"Our talks have stalled," said Mukesh Bhatt, official spokesperson of the Producers and Distributors Forum, in a recent interview. "We are looking at releasing films in single screens and independent non-national multiplexes in two weeks."

When Emirates Business contacted Siddharth Roy Kapur, CEO of UTV Motion Pictures, India's largest production house, he confirmed the news, saying: "We are releasing our forthcoming productions in single-screen cinemas and plans are currently being drawn up."

Yet, Kapur denies any of their films have been stalled.

Single cuts a lonely figure, and for an industry that banks on the billions raked in by multiplexes, Bollywood may be in for a rough ride.

For UAE audiences though, this is certainly good news during the summer, where cinema features high on the list of "outdoor" activities.

"I wasn't sure what I would be doing for two months had they decided not to release any movies until this strike is resolved," says student Meenaxi Tandon. "I'm waiting to catch Kambakkat Ishq."

This Sajid Nadiadwala's mega-budget film is reportedly one such project affected by the strike. The film stars Akshay Kumar and Kareena Kapoor, along with Hollywood's Sylvester Stallone.

Yash Raj Films' John Abraham-Katrina Kaif starrer, New York, had also been put on the back burner.

Last month, actors Aamir Khan and Shah Rukh Khan held a joint press conference to request a dialogue between the producers and mutiplexes. But critics looked upon this as a shrewd publicity stunt to garner goodwill and ensure their own interests as independent producers.

Aamir went a step further on his blog, saying the strike will continue "until we get fair terms, and they stop bullying us, and stop all irregularities."

With these battle lines drawn, the ultimate loser appears to be the industry itself.


Dvd sales get a boost

With the ongoing boycott of multiplex cinemas by Bollywood producers, DVD sales and the video rental market in India have benefited.

Sangram Patil, a manager with online DVD rental company Seventymm in Mumbai, says: "The strike is working to our advantage ."

The DVD market was estimated to be worth Rs8.6 billion in 2008 and is forecast to double to Rs16bn by 2013, according to KPMG.

Reliance Anil Dhirubai Ambani's Big-flix.com and Moser Baer have ruled the home entertainment arena for three years. Long-term profits from the strike remain to be seen. (Reuters)