‘Content’ providers are big losers:TFCC?

With strike looming large over T-town, the apex body is planning to hold negotiations with digital service providers with some stern conditions. Apart from seeking reduction in hefty processing fee, producers will ask for a cut in ad duration in theatres. On the other hand, negotiating with a new service provider

T-town producers, exhibitors and distributors are facing a piquant situation for the last four to five years. However, they have joined hands under Telugu Film Chamber of Commerce to break the hegemony of digital service providers in TS and AP who hold control over 1,800-odd theatres. 

“Frankly, it is a very shameful and disgusting scenario, where content providers are at the mercy  of digital service providers who have been looting content providers in an unprecedented manner,” rues producer-distributor P Bharat Bushan who supports the apex body’s decision to shut down industry from March 1. “TFCC has no other choice than to wriggle out of monopolistic hegemony who plundered hundreds of crores with exorbitant charges and one-sided rules,” he adds. 

It is reliably learnt that Telugu Film Chamber of Commerce has reportedly drafted a proposal with stern conditions and planning to meet the digital service providers for negotiations shortly. The apex body would be seeking a reduction in hefty processing fee of Rs 11,800 per week, into various slabs like Rs 7,500, Rs 2,500 with a gap of six months to make if affordable for producers and distributors. 

“Particularly, in C centres, collections are dropping alarmingly due to poor turnout at theatres. Hence, distributors are unable even pay rent  and processing fee is out of their reach. Initially, service providers assured to offer a moderate fee for  small centres, but they are charging the same from A to C centres, which has to be addressed forthwith,” says a theatre owner from Vizag who also prefers a cut in ad duration in theatres to eight minutes including three minutes for film trailers “free of cost”. 

Apart from attempts to resolve the present stalemate, TFCC is holding talks with a new digital service provider. “We have alternative plans and negotiating with a new entrant who is willing to set up servers/projectors at a cheaper cost of Rs 2,000 to Rs 2 lakh against Rs 15 lakh charged by existing providers. 

Besides a affordaqble processing fee of just Rs 2,000. They are well-equipped to establish projectors in 1,000-odd theatres in AP through State government’s Fibregrid Project. Even TRS  government assured to lay fibregrid very soon which will enable us to push existing providers out of business in 500-odd theatres in TS as well,” adds distributor Ramakrishna.