Corporate3Idiots may pinch as producer seeks higher ticket prices
The Aamir Khan-starrer 3Idiots is the most-awaited Bollywoood film of 2009. Producer Vidhu Vinod Chopra is banking on this to bargain for an exceptionally good financial deal.
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Sources said Chopra is negotiating with multiplex and theatre owners to raise ticket prices almost 35 per cent for evening shows and over 100 per cent for morning shows, the highest-ever rate increase for any Bollywood film. The movie releases on December 25.
Multiplexes charge an average of Rs 250 for afternoon and evening shows. Morning shows are priced between Rs 80 and Rs 100. “Vidhu Vinod Chopra is insisting that theatres must increase prices to Rs 300-350 for evening shows and Rs 200 for morning shows,” said a source. However, owners believe this may not be taken too well by the audience.
For the movie, the producer also expects multiplexes to maintain uniform prices through the week, rather than the staggered pricing followed now. “Most families are out, since it’s the Christmas weekend. It wont be affordable. Imagine a family of four paying Rs 2,000 to watch a movie,” said a multiplex source. For ‘Gold class seats’, a ticket will cost Rs 800, from the usual 500. In the past, movies like Om Shanti Om, Ghajini and Kambaqt Ishq have witnessed an increase in ticket pricing. Analysts say this is a new strategy by the producer after attempts to squeeze a higher revenue share from multiplexes did not materialise. Business Standard had earlier reported that the production house was demanding a revenue share of 52 per cent of total box-office collections in the first week, 47.5 per cent in the second week, and 40 per cent in the third and fourth weeks.
Since the multiplex-producer standoff was resolved in June this year for a performance-based revenue sharing agreement (binding for two years), Chopra may have little choice, but to go by the agreement signed then. The agreement says producers would get 52.5 per cent in the first week, 45 per cent in the second week, 37.5 per cent in the third week and 30 per cent in the fourth week if the movie earns over Rs 17 crore at the box office. The producer’s share decreases by 2.5 per cent in week 1 and 2 if the movie earns between Rs 10-17 crore. If the movie does a business of less than Rs 10 crore— producer’s share is 50 per cent for week 1, 40 per cent for week 2, 35 per cent for week 3 and 30 per cent for week 4.