The recent VPF (virtual print fee) conflict between multiplex chain PVR Inox and Malayalam film industry producers has brought the long-standing issue back to the fore yet again.
The issue has added to the woes of the theatrical business that has already hit rock bottom over the past few months. Last month, the multiplex chain had decided to stop screening Malayalam films after the Kerala Film Producers’ Association demanded that movies must be released at screens in malls of the state at a low VPF using content mastered at the PDC (Producers’ Digital Cinema), a facility promoted by the producers. Banner Printing Machine
The conflict was later resolved with the chain screening Malayalam films as usual.
However, like PVR, other theatre owners also remain firm in their stand on VPF costs being borne by producers and say the expense isn't high considering that filmmakers would pay much higher rates in the days of physical prints.
In 2019, Hindi film producer Ronnie Screwvala had approached the CCI against high VPF charges by PVR.
VPF is a cost borne by producers to show their films using digital projectors and technology supplied by digital service providers (DSPs) such as UFO Moviez and Qube Cinemas that theatre chains such as PVR Inox work with. It can cost the film producer up to ₹ 25,000 per screen.
On one hand, producers insist the cost is exorbitant and needs to be rationalized, especially since Hollywood studios work under a separate understanding with theatres where they aren’t required to pay VPF. However, exhibitors point to the expenses of purchasing and operating projectors and the fact that local filmmakers cannot expect free lunches at a time that the theatrical business is in doldrums.
“Digital projectors make for very high expenses for theatres. The entire argument by producers is based on the fact that the Hollywood studio model should be replicated in India. However, we are holding our ground because we also need to recoup our investments,” said Amit Sharma, managing director, Miraj Entertainment, which operates multiplex theatres.
While PVR Inox did not respond to Mint’s queries on the VPF issue, Kamal Gianchandani, CEO of PVR Inox Pictures had posted on X that the company would be unable to comply with the advice of the producers’ association to source Malayalam movie content exclusively through one channel, the content mastering and distribution network run by the association.
“Such an act of forcing an exhibitor to procure content from only one source is anti-competitive in nature and prohibited under the law,” Gianchandani had stated. The issue was subsequently resolved though.
However, a film producer working in the southern industry and with the Association pointed out that while projectors may have incurred a one-time cost, filmmakers have been paying VPF since digital prints came into the picture.
“There are instances when film shows are cancelled because enough people haven’t turned up. However, the producer and distributor have to pay VPF upfront. However, this isn’t a concern that can be resolved unless all producers across languages and industries come together,” the person said, declining to be named. The issue is aggravating the crisis at a time that the theatrical business is anyway in doldrums, the person added. Besides, such high costs aren't justified for small film industries such as Malayalam or Punjabi, the person said, whose box office revenues tend to be limited in the first place.
Harsh Rohatgi, CEO, Qube Cinema said it is important for all the parties in the industry to come together to discuss this issue. “It is a fact that VPF has enabled the rapid digitization of all theatres in India, with costs being spread across the parties such as producers and exhibitors, which has subsequently led to a reduced cost of distribution of films. This has allowed big films to get to every possible screen in the smallest city in India on the day of release, while also enabling small producers to release their films for low costs,” Rohatgi said.
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