Theatre owners' sudden decision on collection sharing

With the date of release of Rajini-starrer "Sivaji" nearing (May 31), theatre owners in Tamil Nadu have come out with a new formula to share the collections with producers.

Under the formula, collections at theatres will be shared on a 60-40 per cent basis between producers and theatre owners respectively for the first week, 55-45 per cent for the second seek and 50-50 per cent from the third week.

The new formula, which has taken effect from May 16, would apply to all films, including "Sivaji'. A resolution to this effect was unanimously adopted at a meeting of the Tamil Nadu Theatre Owners Association on May 16.

The resolution, however, provides for flexibility. The percentage may vary from theatre to theatre and will also depend on the collection of a film.

Briefing media persons in Chennai after the meeting, Tamil Nadu Theatre Owners Association president Rama. Mu. Annamalai and general secretary R. Panneerselvam said that hereafter all films would be purchased only on a percentage basis and not on the existing system of MG (Minimum guarantee) or FH (Fixed Hire). According to Annamalai, as the production cost of films is increasing day by day, theatre owners are forced to pay a high rate. The MG or FH system results in losses for the theatre owners.

The resolution came as a surprise as it was adopted after the announcement of date of release of "Sivaji". Asked if the sudden decision was in view of the May 31 release of the much-hyped and eagerly awaited 'Sivaji' which is expected to set a box-office record, Annamalai said the new formula is applicable to all films, released from May 16, including "Sivaji". No particular film has been targeted and the resolution is aimed to safeguard the interests of theatre owners. Paying high rates for films by theatre owners only pushes up the remunerations of actors and actresses. Not even producers are benefited, Annamalai and Panneerselvam explained.

Replying to a specific query, Annamalai said the percentage system is not new. It had been in vogue prior to 1990 and the Minimum Guarantee (MG) came after 1990. The Theatre Owners Association has now decided to revert to the percentage system.

The meeting also adopted another resolution that the admission rates fixed by the DMK government be implemented all over the State for the benefit of the public. It was pointed out that the Collectors of some districts have not enforced the new admission rates. The meeting appealed to Chief Minister M Karunanidhi to direct these District Collectors to grant permission to the category of theatre owners to whom the minimum admission rate of Rs.10 and the maximum rate of Rs. 50 are applicable.