Multiplex chain stops screening of Malayalam movies over conflict with film producers

Malayalam cinema has been on a roll, packing theatres with stellar releases like Manjummel Boys, Bramayugam, Premalu and Aadujeevitham. Now, with three releases for Eid, namely Aavesham, Varshangalkku Shesham, and Jai Ganesh, box office numbers were supposed to do well, but multiplex chain PVR-INOX has stopped screening Malayalam movies across the country, due to a dispute between them and the Kerala Film Producers Association (KFPA). Here’s a lowdown of the situation:

The issue began after film producers set up an Exclusive content mastering unit: SourceService providers like QUBE, UFO, and Sony provide virtual print for theatres like PVR INOX, and according to sources, they allegedly charge a virtual print fee (VPF), which is said to be priced anywhere between Rs 12,000 to Rs 25,000 per week for screening. “Film producers found this price to be exorbitant. As a solution, producers in Kerala came up with a content mastering unit called PDC. Now, producers have been urging theatres to switch to this particular content mastering scheme as it is cheaper on their pockets. However, the multiplex chain is not willing to make the switch, thus leading to the conflict,” explains our source.

Forcing an exhibitor to procure content from only one source is prohibited by law: PVR-Inox
Kamal Gianchandani, PVR-INOX CEO, said in a statement on social media, “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.”

This ban will turn out to be a bigger loss for the multiplex chain, states Malayalam film producer
A producer, on condition of anonymity, told us, “Rather than within Kerala, the issue has an effect outside the state, because in Chennai and Bengaluru, most of the screens are run by the multiplex chain. While a producer faces a loss, so do the theatres; in fact, they face a bigger loss, particularly during the festive season. They’re losing a huge number of centres - about 100 theatres in Kerala and in South India - in a day.”

What is a VPF?
VPF, or a Virtual Print Fee, is a subsidy paid by a film distributor to purchase equipment for digital cinema projection which a film exhibitor uses to present the motion picture. This was introduced when commercial-grade digital projectors were introduced and theatre owners resisted changing their film projectors. Since there was a lot of money being made by the distributors and not the theatre owners, the concept of VPF was introduced.