Under the new model, revenue will be shared with producers on the basis on the 'bankability' of male stars.
Tamil Nadu exhibitors announce new model for sharing revenue with producers
Chennai - 28 May 2019 21:49 IST
In a shocking move, the Tamil Nadu Theatre and Multiplex Owners’ Association today announced a new revenue-sharing model based on the market value of male stars in Tamil cinema.
According to a statement released by the association, a discussion regarding the new revenue model took place at a meeting last Friday.
“To combat various factors such as taxation regulations, maintenance cost, increase in personal tax and increase of employee salaries, which have become a major burden for theatre owners, the association has decided to streamline its regulations,” read the statement.
The new model suggests that nett box-office revenue (minus 18% goods and services tax and 8% local bodies tax levied in Tamil Nadu) will be shared with producers on the basis on the 'bankability' of male stars.
While superstar Rajinikanth, Ajith and Vijay constitute tier A, Suriya, Jayam Ravi, Dhanush, Simbu, Sivakarthikeyan and Vijay Sethupathi have been put in tier B as far as bankability, or the ability to command an opening at the box office, is concerned. The rest have been plonked in tier C.
The new model suggests that producers and theatre owners share profits on a 60:40 basis for the first week collections in A centres for Rajinikanth, Ajith and Vijay films. In the second week, the ratio will be 55:45.
This move, according to a source from the theatre owners' association, will streamline revenue and give producers the best picture about the market value of any actor.
The step is likely to face stiff opposition from producers who are yet to comment on the revised revenue-sharing model.