The stand off between South Indian film producers and Digital Service Providers (DSP)'s is over in Andhra and Telangana, where a settlement has been reached.
The theatres will reopen from Friday (March 9) and there will be new releases in the coming weeks. Digital Service Providers(QUBE and UFO) have proposed a revised Virtual Projection Fee(VPF) to producers and distributors in South. As per the new model, distributors and producers have two options—either they can accept flat VPF (Rs 21,750 for D Cinema and Rs 20,000 for E Cinema) or opt to pay on per show basis.
However in Tamil Nadu the stand off between TFPC and DSP's continue. SR Prabhu a leading producer and one of the key members is quoted in The Hindu as saying : " We are not happy with the terms and conditions offered by the DSP's. They have offered a marginal reduction and are not saying anything about the sunset clause.We have made it clear that there will be no new releases till the matter is sorted out."
Meanwhile Tamil Nadu theatres are bleeding without new content.80 to 90 percent of the screens in the state depend on Tamil content to keep their screens running. Among the older releases it is 2018 releases like Kalakalappu2 and Naachiyaar which is being played, but the occupancy is poor. Most of the screens across Tamil Nadu have cancelled the day time - Noon and Matinee shows.
The theatres association in Tamil Nadu have called for an emergency meeting tomorrow to discuss the issue. They feel it is difficult to come out of agreements that they have signed with DSP's. At the same time they need new releases to survive in the business.
Sources say that Telugu Film Producers have agreed to this revised rate for the time being but we have to wait and see to know the final decision to be taken by Tamil Film Producers.Unless Tamil film producers and theatres do not thrash out an agreement, the strike cannot be said to have been called off.