Why multiplexes are nervous

If big films release directly on OTT, what are the multiplex chains to do? An insider explains the anxiety

Multiplexes understand the plight of small film makers, but expect big producers not to ditch them.

Showtime spoke to a high-ranking official of a major multiplex chain, who, on condition of anonymity, explained the threats theatre and multiplex owners were facing.

He says his company can tide over the losses. “When revenues are absolutely zero, things can’t be good, but fortunately, we are a zero-debt company. There is also sufficient capital from the owners. We should be able to sustain ourselves for a good six to seven months, by which time things should be back to normal,” he says.

This chain of multiplexes has not cut salaries or laid off employees. The OTT platforms, on the other hand, are a bigger worry than the current lockdown, the business insider says.

“There are theatrical window systems in film industries across the world. In every country, films have to run in theatres for a couple of months before they can be released on another platform. America has a 90-day window system. Europe has it for 60 days. India has it for 60 days,” he says.

Ever since OTT platforms launched in India, theatres and producers have been talking to decide how much time is allowed before a film goes online. He says if the window is right, it can benefit all parties involved.

“Research shows that a movie that has run well at the theatres has brand value. Which would mean that it does well in the OTT space as well. It’s a win-win situation. There is no law enforcing this but this was agreed upon in the industry,” he says.

Rumours have added to the theatre owners’ worries. Recently, Bollywood actor Arjun Kapoor had said that he sees nothing wrong in releasing films on OTT platforms given the current state of affairs. He was responding to a question about the release of his film ‘Sandeep Aur Pinky Faraar’.

A top OTT platform has approached the producers of ‘83’, the big-budget production about India’s cricket World Cup win, with Ranveer Singh starring as Kapil Dev. The platforms are also eyeing other big films like ‘Gulabo Sitabo’ and ‘Laxmmi Bomb’.

“The industry completely accepts a smaller producer can’t hold on to his movie. But it’s not like that when it comes to a big film. Everybody is in it together. If one person breaks the chain for money, that means the rest of us will fall into a pit,” he says.

Don’t bypass multiplexes to go to OTT, say owners

Multiplexes are asking filmmakers not to bypass them in favour of streaming platforms.

The Multiplex Association of India this week released a statement demanding that films respect multiplexes, which they describe as an “exclusive theatrical window”.

The statement begins with a grand claim: “The Indian Film Industry is the most popular, if not virtually the only source of entertainment in the country.”

The most important part of the two-page document comes a couple of paragraphs later, and is written in bold and italics: “We urge all studios, producers, artistes and other content creators, to kindly respect the exclusive theatrical window, which has been a time-tested industry practice, agreed to by all stake-holders, not just in India, but also globally for several decades.”

This is a response to a change not just in India, but the world over, since the lockdown began. Theatres are shut and OTT platforms have been busier than ever. Producers, trying to save their movies amid uncertainties about how the industry will be able to bounce back, have been talking to OTT platforms to strike release deals.

A week ago, American theatre giant AMC banned Hollywood giant Universal Studios after it decided to release its film ‘Trolls World Tour’ directly on an OTT platform.

Closer home, the decision to release Jyothika’s Tamil film ‘Pon Magal Vandaal’ directly on an OTT platform has led to the Tamil Nadu Theatre and Multiplex Owners’ Association calling for a boycott of the actor’s husband Suriya’s films.