Producers shocked by theatre owners’ decision

Chennai: The recent announcement by Tamilnadu Multiplex and Theatre Owners Association (TMTOA) on new share percentage for films featuring popular actors has shocked producers and distributors. They are afraid that it may affect their overall revenue.

In a press release here, the association said they have devised a three tier strategy according to which they will share the revenue with producers and distributors.  Artistes like Rajinikanth, Ajith and Vijay will come under Tier 1. Their films will enjoy comparatively higher percentage. Suriya, Jayam Ravi, Dhanush, Simbu and Vijay Sethupathi will come under Tier 2. The rest of the stars including Kamal Haasan, Vikram, Vishal, Karthi fall under Tier 3.

What it means?
In the first week, theaters in ‘A’ centers will give 60 per cent of the revenue to the distributors who release films of Rajini, Ajith, and Vijay whereas theaters in ‘B’ and ‘C’ centers will give 65 per cent revenue. For the films featuring tier two heroes, ‘A’ centre theaters’ share is 55 per cent and the rest of theaters will provide 50 per cent in the first week.

Interestingly fans of Kamal Haasan, Vikram, Karthi and Vishal are shocked as their favorite actors were not in the race and they have been ranked below many actors who entered into the industry much later. Sources say that the association took the decision to streamline the revenue sharing between stakeholders. They say that maintenance cost of running theatres is going up so they are forced to revise revenue sharing agreement.

NT Bureau