Ronnie Screwvala takes multiplexes to task, demands to scrap VPF

One has often seen small and medium-sized producers complaining about the exorbitant cost of releasing their films. In a major development, Ronnie Screwvala has declared war on multiplexes, similar to how the South film industry had gone on strike last year over the same issue.

Ronnie who founded UTV Group (now Walt Disney India) and now runs Ronnie Screwvala Productions (RSVP) that has recently produced films like Uri: The Surgical Strike and Sonchiriya.

In a 153-page informative note addressed to PK Singh, Secretary of the Competition Commission Of India, Ronnie has asked them to intervene and stop major players like PVR Ltd, Inox Leisure Ltd, Cinepolis India Pvt. Ltd and Carnival Motion Pictures Pvt Ltd along with FICCI – Multiplex Association of India from charging the Virtual Print Fee (VPF) which amounts to Rs 20,000 per screen when a producer or a film studio releases their film through the digital service provider. UFO, Scrabble and Real Image are some of the digital service providers who beam the films to the theatres.

In his note, Ronnie has also mentioned that the multiplexes should take care of the exhibition and the producers should not be charged as they would  recover their investments (multiplexes had to change their systems to accommodate the digital prints) in five years.

“Earlier there were film prints, which used to be shown at every screen. Now, it is a virtual print which is beamed via satellite to the screens that are showing the films. When the change occurred, every multiplex had to get their systems changed to accommodate the digital prints and spent between Rs 35-50 lakhs. Even though a sunset clause was discussed to stop charging the VPF from December 2017, the multiplexes continue to charge the same from the Indian producers but have stopped taking it from the Hollywood studios who are well aware of the norms. Ronnie, in fact, did not want to pay the VPF for Sonchiriya as well, but then paid it under protest because he did not want his film to suffer. “It is only a matter of time before other big Bollywood producers join in and make life easier for Bollywood and other regional films like Marathi as well. It is a no brainer. They have to stop charging the VPF and decide on a new sunset period as it is pure extortion now,” says a senior trade source.

If the Competition Commission has its way, Bollywood and other regional industries too can breathe a sigh of relief as it would bring down the releasing costs of films by a huge margin.

— Sanskriti Media