Why 'Ramayana's advance booking hasn't begun at single screens
What's the story
The highly anticipated film Ramayana, starring Ranbir Kapoor, Yash, and Sai Pallavi, is facing a hiccup in its advance booking due to a revenue-sharing dispute between Dharma Productions and single-screen theaters. While Dharma has reportedly agreed to standard industry terms with national cinema chains, it has demanded a 60:40 revenue share from non-national chains and single-screen theaters, reported Variety India. However, single-screen exhibitors have refused to accept this demand.
Dispute details
Why single screens can't accept the 60:40 revenue share
G. Dhananjheyan, a prominent distributor from South India, explained, "The main point of contention is the revenue-sharing arrangement."
"Given that Ramayana has roughly a three-hour, 15-minute runtime, along with a 30-minute interval, single-screen theaters will be able to accommodate only four shows a day instead of the usual five."
"This directly affects our business, as we lose one show and the revenue that comes with it."
"There are also electricity costs to consider."
Ongoing negotiations
'They cannot afford to offer a higher share'
Dhananjheyan further revealed, "The distributor initially demanded 65% and has now brought it down to 60%, while single-screen exhibitors have offered to go up to 55% from their initial offer of 50%."
"So, the difference is now just five percentage points."
"Exhibitors feel that the film's length affects their ability to generate revenue, and they cannot afford to offer a higher share under these circumstances."
Negotiation progress
'Local multiplexes are also asking for same...'
Dhananjheyan revealed, "There is no such dispute with the national multiplex chains."
"A national-level agreement with PVR and other chains exists, under which the standard terms of 55% and 52.5% apply."
"Local distributors are negotiating separately with single screens and local multiplexes."
"The local multiplexes are also asking for the same terms as the national chains."
Meanwhile, the film will be released on November 5.