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Producers preferring exhibitors to distributors
A majority of producers believe that doing business directly with exhibitors is more profitable to them, than going by the old practice of selling their films to distributors who, in turn, used to negotiate with exhibitors \"It is high time for a course correction,\" said leading producer Anil Sunkara who released his latest film \'Kirrak Party\' directly in theatres.
A majority of producers believe that doing business directly with exhibitors is more profitable to them, than going by the old practice of selling their films to distributors who, in turn, used to negotiate with exhibitors "It is high time for a course correction," said leading producer Anil Sunkara who released his latest film 'Kirrak Party' directly in theatres.
"We skipped the distribution mode of business and released on our own after negotiating with the exhibitors. By that, I could get more money on hands and the collection figures were more transparent, unlike distributors who fudged the figures and showed less collections, In fact, more than 10 producers are willing to follow my path this summer," he added.
According to trade circles, a producer makes a film and sells it to a distributor who in turn will talk to exhibitors for release. A distributor takes advances from exhibitors and releases the film only in those theatres, rather than arranging funds on his own. "It has become easier to do business in distribution these days because it brings more profits than losses.
For instance, if a producer demands Rs 1 crore for Hyderabad region for a film, the distributor collects advances of Rs 20 lakh each from 10 theatres and adds Rs 20 lakhs from his pocket and hands over Rs 1 crore to producer.
Despite the reduced risk, the distributor begins to pester and trouble the producer if the film flops and warns of halting his subsequent releases until the dues are cleared. Apparently, making filmmaking business risky and unviable," rues Pupalla Ramesh.
Even exhibitors are willing to negotiate with producers directly, by skipping distributors chain. "Most of the exhibitors in TS and AP are now giving theatres advance in crores and stuck in the business. Hence, they would prefer to negotiate with producers to make the collections more transparent.
In case of losses, if any, they can be adjusted in their subsequent films to ensure the hassle-free releases of big films every week.
By adopting this route, a producer can also save 20% commission that he has pay to a distributor, which will add upto crores of rupees, in case if it happens to be the film of a superstar.
The direct contact between a producer-distributor will be mutually beneficial and may revive the interest in film-making among producers," concludes Teja, who runs a swanky theatre in Vizag.
