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Producers of Gujarati films seek reduction in service charge on movie tickets

Multiplex owners say charge necessary to maintain viability of business

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Producers of Gujarati films demanded that the service charge levied by the multiplex and theatre operators should be abolished as, they claim, it is nothing but a loot.

On the other hand, multiplex operators say that the producers should first try to improve the quality of Gujarati films so that it becomes a viable business, or else multiplexes will have to shut down. As of now, a fixed amount of Rs 25 is charged per ticket irrespective of the cost of the ticket.

Talking to media persons in the city, leading film actor Manoj Joshi said that multiplex and theatre owners are charging Rs 25 as service charge, which does not have legal backing. "There is no government notification or resolution which allows them to levy such charges. Such charges are not a norm in most states. In Maharashtra, service charge is only Rs 7 per ticket," said Joshi. He termed this charge as a loot by the operators and said that they have urged the state government to ensure that it is being abolished. "A film producer gets only Rs 20, while theatre owners get Rs 42 over a ticket of Rs 100," he said warning that if this charge is not abolished, Gujarat Film Producers Association will start an agitation. "They charge for parking, they overcharge for food and beverages, they charge producers for putting film posters and also for advertisement before the start of the film and during the interval," he said.

Since the demand for Gujarati films is very low compared to other regional language films, he said that there is no earnings from satellite, music, overseas or digital medium rights and the box office is the only source of earnings for the filmmakers. "Average cost per film turns out to be Rs 3.5 crore and even after subsidy from the state government, most films are not able to break even. So there are not repeat producers for Gujarati films," he said.

Countering Joshi's arguments, Rakesh Patel, director of Wide Angle multiplex said that the Service Charge is for maintenance as overheads are very high and warned that if this charge is abolished, it would be difficult for theatres and multiplexes to survive. "Instead, film producers should try to improve the quality of films to ensure footfalls. It is only about two years that the charge has been raised from Rs 14 to Rs 25. We had to fight for it to ensure our survival," said Patel.

POINT OF ARGUMENT

  • Multiplex owners say if the service charge is abolished, their earnings per ticket would restrict to just 23%, which according to them is not sustainable 
  • They claim government levies 18% GST over their earnings, so the net earning per ticket is just around Rs 20 
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