Monday, October 22, 2007
Eros, Sony demand more from multiplexes
While film production company Eros International and Hollywood’s Sony Pictures are still battling to grab as many of the 800-odd single screens in the country - for their upcoming films Om Shanti Om and Saawariya - the same isn’t true when it comes to multiplexes.
The two have come together and are jointly negotiating with leading multiplex owners for higher revenue share.
This is the first time that the two production houses are jointly negotiating with theatre chains for a percentage share, which even veteran filmmakers such as Yash Chopra, promoter of Yash Raj Films, has never been able to command.
Sources said that Sony Pictures and Eros International are demanding 50 per cent of the ticket sales in the first two weeks and 40 per cent in the third and fourth weeks.
“Production houses are aware that multiplexes cannot ignore the two biggest films of the year. Therefore, they are in a position to command a high revenue share,” said an top executive of a leading multiplex.
Till date, only Chopra has used his muscle with cinema hall owners while asking for higher revenue share. Early this year, Yash Raj Films struck a deal with movie exhibitors under which the company will get 50 per cent of the revenue earned through ticket sales in the first week, 45 per cent in the second and 40 per cent in the third and fourth week, for five films under the banner of Yash Raj Films.
Industry sources added that the representatives from the two production companies would meet leading multiplex owners on Monday to negotiate revenue sharing terms.
While Sanjay Leela Bhansali’s Saawariya marks Sony Pictures’ foray into the Bollywood industry, Om Shanti Om’s worldwide distribution rights were bought by Eros International for around Rs 74 crore from Shah Rukh Khan’s Red Chilies Entertainment.
The two films are slated to hit the screens on November 9. Recently, Eros International and Sony Pictures announced their alliance to jointly produce and acquire Hindi films.
While Sony Pictures will distribute some of the films in the US, Eros International will make use of its presence overseas to distribute movies in other territories. The two production companies will jointly work in India.
BusinessStandard
The two have come together and are jointly negotiating with leading multiplex owners for higher revenue share.
This is the first time that the two production houses are jointly negotiating with theatre chains for a percentage share, which even veteran filmmakers such as Yash Chopra, promoter of Yash Raj Films, has never been able to command.
Sources said that Sony Pictures and Eros International are demanding 50 per cent of the ticket sales in the first two weeks and 40 per cent in the third and fourth weeks.
“Production houses are aware that multiplexes cannot ignore the two biggest films of the year. Therefore, they are in a position to command a high revenue share,” said an top executive of a leading multiplex.
Till date, only Chopra has used his muscle with cinema hall owners while asking for higher revenue share. Early this year, Yash Raj Films struck a deal with movie exhibitors under which the company will get 50 per cent of the revenue earned through ticket sales in the first week, 45 per cent in the second and 40 per cent in the third and fourth week, for five films under the banner of Yash Raj Films.
Industry sources added that the representatives from the two production companies would meet leading multiplex owners on Monday to negotiate revenue sharing terms.
While Sanjay Leela Bhansali’s Saawariya marks Sony Pictures’ foray into the Bollywood industry, Om Shanti Om’s worldwide distribution rights were bought by Eros International for around Rs 74 crore from Shah Rukh Khan’s Red Chilies Entertainment.
The two films are slated to hit the screens on November 9. Recently, Eros International and Sony Pictures announced their alliance to jointly produce and acquire Hindi films.
While Sony Pictures will distribute some of the films in the US, Eros International will make use of its presence overseas to distribute movies in other territories. The two production companies will jointly work in India.
BusinessStandard
Labels: Deepika Padukone, Eros International, Farah Khan, Om Shanti Om, Ranbir Kapoor, Red Chillies Entertainment, Saawariya, Sanjay Leela Bhansali, Shahrukh Khan, Sonam Kapoor, Sony Pictures
Posted By Ivan Me ... at 8:14 PM
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