Hollywood studios will not release movies in multiplexes

Hollywood studios in India have decided not to give in to the demands of multiplex owners, and will not be releasing their films in Indian multiplex chains till “further decisions are made” on the profit-sharing issue between them.

The last Harry Potter film almost didn’t get released when plex owners demanded a greater share of the profit pie which Hollywood studios in India declined.

Though the film got released after much deliberation, the issue cropped up again during the release of Rise of the Planet of the Apes.

“No Hollywood films are getting released in the multiplex chains right now. If the multiplex owners can gang up against us, then we too will fight it. We won’t give in to their demands anymore, and have decided to release films in double the number of single screens than in multiplexes,” says a senior official of a prominent Hollywood studio.

The multiplexes too are not budging. “We have asked for a greater pie because we are not making the required profit. We are not going to budge this time,” says a multiplex owner.

Reputed studios like Fox and Warner brothers admitted having trouble releasing their films.

“We are working with each of our multiplex partners to find the best possible way to resolve the revenue sharing issue for Harry Potter and the Deathly Hallows, Part Two (an old issue) as well as our forthcoming release on August 12,” says Denzil Dias, Deputy Managing Director (Theatrical), Warner Bros.

Says a spokesperson from Fox, “Despite our best efforts, we were unable to come to an appropriate commercial arrangement with our exhibition partners as we were offered terms that were not consistent with other recent Fox films of a similar scale. 

So we have released Rise of the... in close to 400 screens — largely constituting single screens and a few multiplexes.” The question is who will blink first: multiplex or the Hollywood studios?