Shivaprasad T R A simmering dispute between the Malayalam film industry and PVR-INOX theaters has erupted, leading to a halt in screening Malayalam films across India. This article delves into the core issue, the involved parties, and the potential consequences for Malayalam cinema.
The Bone of Contention: Virtual Print Fee (VPF)
At the heart of the conflict lies the Virtual Print Fee (VPF), a charge levied by service providers like QUBE for enabling movie screenings in multiplexes. Malayalam film producers, represented by the Film Distribution Association of Kerala (KFPA) and the producers council, vehemently oppose the high VPF, arguing that it eats into their already strained profits.
Kerala Film Producers Association (KFPA): Champions of Malayalam Cinema
Established in 1961, the KFPA is a heavyweight organization safeguarding the interests of Malayalam film producers. Beyond financial concerns, the KFPA actively promotes Malayalam cinema on a national and international scale. Film financing schemes, better distribution deals, and film festival organizations are some of their noteworthy contributions to the industry’s growth.
PVR Cinemas: A Multiplex Giant
Founded in 1997, PVR Ltd. is India’s leading cinema exhibitor, boasting a vast network of 937 screens across 182 properties in 73 Indian cities (as of March 31, 2023). Renowned for their premium movie-watching experience, PVR theaters are prime locations attracting large audiences, making them a coveted platform for filmmakers.
Seeking a Solution: The Rise of PDC
To combat the burden of high VPF, the KFPA established their own content mastering unit called PDC, offering the service at a significantly lower rate. They proposed a shift towards PDC, benefiting producers struggling financially.
PDC Explained: A Producer-Driven Content Delivery Solution
The Kerala Film Producers Association’s (KFPA) response to the high Virtual Print Fee (VPF) was the establishment of their own content delivery system called PDC (likely meaning Producer Distribution Company or Producer Delivery Company).
Think of PDC as a competitor to service providers like QUBE. PDC’s role is to handle the content mastering and distribution for screening movies in theaters. The KFPA argues that PDC offers the same service at a significantly lower cost compared to traditional service providers. Here’s a breakdown of the estimated cost difference:
VPF with service providers like QUBE: The exact cost varies, but reports suggest it can be as high as Rs. 11,500 per week for a single screen and Rs. 24,500 per week for multiplexes with four or five screens. There are also charges per show.
PDC charges: The KFPA claims their PDC service is considerably cheaper. They offer a weekly rate of Rs. 3500, a lifetime service for Rs. 5500, and Rs. 7500 for multiplexes.
By advocating for theaters to adopt PDC, the KFPA aims to create a more cost-effective ecosystem for Malayalam cinema. The success of PDC, however, hinges on its ability to deliver high-quality service that meets the technical requirements of theaters while maintaining its cost advantage.
PVR-INOX’s Stand Contracts and Competition Concerns.
PVR-INOX, however, maintains existing contracts with service providers like QUBE, restricting them from using alternatives. Additionally, they perceive the KFPA’s demand to use PDC exclusively in new multiplexes as anti-competitive and a violation of law.
Kamal Gianchandani, the CEO of PVR-INOX, has released a statement in his X i.e. In his Twitter account and alleged that the Kerala film producers union is arm twisting the exhibitors by opting only PDC. The statement reads as follows.
At the outset, we would like to express our sincere appreciation to all our Producer and Distributor friends in Malayalam Film Industry for their unwavering support for the theatrical platform and their significant contribution to the revival of theatres post Covid-19. No one holds greater respect for all the Producers releasing their films in our theatres than all of us at PVRINOX.
Normally, we try to keep the industry related matters to ourselves, but we have come across several one-sided media reports regarding PVRINOX’s disagreement with the Producers Association on some commercial matters, and therefore it is important that we share our point of view.
Our newly inaugurated 9-screen cinema, PVR FORUM Kochi, has been advised by the Association to source Malayalam movie content exclusively through one channel i.e. through the content mastering and distribution network run by the Association. Such an action of forcing an exhibitor to procure content from only one source is anti- competitive in nature and prohibited under the law. As a law-abiding member of Indian Film Industry, we are unable to comply with this advice.
Just as the parents love their children equally, for us as a national cinema chain, every cinema is important and it’s incumbent on us that equal opportunity to showcase new movies is provided to all our newly opened cinemas.
We have always been a reliable partner to all Malayalam Film Industry Studios, Producers, Artists, and other creators. We will be delighted to have all Malayalam Films play at PVR FORUM Kochi and our other cinemas in Kerala as well as Pan- India. We would like to appeal to all the Producers and Film makers to constructively engage with us and help us make the Malayalam Film Industry bigger and better.
Cascading Impact: A Blow to Malayalam Cinema?
The current impasse has significant repercussions for the Malayalam film industry:
Reduced Revenue: The absence of PVR-INOX screens translates to potentially lower box-office collections for Malayalam films.
Limited Exposure: PVR’s prime locations and wide audience reach are inaccessible, hindering exposure for Malayalam films, particularly smaller productions.
National Impact: The dispute extends beyond Kerala, affecting the national audience reach of Malayalam cinema.
Negative Publicity: The ongoing conflict casts a shadow on both parties and the Malayalam film industry as a whole.
A Silver Lining?
While the immediate outlook seems bleak, there are potential positives:
* A robust content delivery system within the Malayalam film industry could emerge if PDC proves efficient and cost-effective.
* This situation might encourage other theater chains to negotiate fairer VPF deals.
Looking Ahead: Negotiation or Litigation?
A swift resolution, either through negotiation or legal recourse, is paramount to minimize the damage to the Malayalam film industry. Finding a middle ground that ensures fair pricing and flexibility in service providers is crucial for both producers and theater chains. The entire Indian film industry is watching this dispute unfold.
