Multiplexes snap ties with Yash Raj

Owners say they have had enough with the haggling on revenue

MUMBAI: The bubble was just waiting to burst.  Multiplex owners and Yash Raj Films (the production company of filmmaker, Yash Chopra and his son, Aditya) have decided to go through the divorce they have been contemplating for so long. The acrimony could extend to the next five films of the banner.

Multiplexes have decided not to buckle under Yash Raj pressure which has led to a total continued ban on Tashan. This has even led to a movie hall in Bandra, Globus, downing its shutters for a week! And Suburbia, again in Bandra, has actually put up a disgruntled board near its ticket counter saying “Please don’t ask us for Tashan tickets. Ask Yash Raj movies!”

Each time a Yash Raj film is ready for release, a tug-of-war erupts between its representatives and multiplex owners. While the latter feel that the banner asks for an excessive revenue share, Yash Raj representatives think that any film from the banner justifies this.

Multiplexes generally offer 48% of revenue to the distributor for the first week but Yash Raj’s demand is 55%. They went a notch higher for Tashan with 60% and this did not go down well with multiplex owners who decided not to release the film.

This was not the case earlier when they would virtually beg for a compromise with the banner and bury the hatchet as was the case with Fanaa, Dhoom 2 and Aaja Nachle.
Things have clearly gone out of control. Sources say Aditya Chopra apparently told the owners that even if they came with bended knees again, he wouldn’t accept their attempt at compromises.

A multiplex owner, on condition of anonymity (the association of multiplex owners has asked members not to speak to the media) said, “Earlier they demanded 60% and we agreed for 55% which does not make business sense.  

We agree that it is a loss for us as Tashan would have brought in a good opening but buckling down at this point doesn’t work for us.”

The film, however, released to just 70% opening, the lowest for any Yash Raj movie. Trade Analyst Amod Mehra says, “Yash Raj movies have incurred a loss of net Rs8-10 crore all over India, of which Mumbai alone accounts for Rs3-4 crore. I don’t see any compromise happening as the multiplex owners are really upset this time.”

There is more bad news. The banner was supposed to work out a pact with the multiplexes for their next five films, which include Thoda Pyar Thoda Magic with Rani Mukherji and Saif Ali Khan, an animation flick, Roadside Romeo and Bachna Ae Haseeno with Ranbir Kapoor and Deepika Padukone.

“Now that multiplex owners are not so kicked about releasing Tashan, since it has not been received well, Thoda Pyar Thoda Magic will also face a slight problem as no multiplex owner will give the quoted price. The ball is in Aditya’s court,” Mehra says.

Aditya Chopra was not available for comment. Sanjeev Kohli, CEO of Yash Raj Films only said, “YRF has not asked the multiplexes for any incremental terms from those concluded last year. As done in the past, it would compensate the multiplexes in the event that a film does not perform to expectations. We have done that last year as well.”