PVR-INOX has ceased its decision to not screen any Malayalam films following a tiff with the Kerala Film Producers' Association (KFPA) over the issue of content sharing.
Amid the dispute, on 13 April, the Film Employees Federation of Kerala (FEFKA) had reportedly threatened to stage protests against the company's multiplexes until the management compensated for the loss incurred after it pulled out new Malayalam releases like Fahadh Faasil’s Aavesham, Vineeth Sreenivasan's Varshangalkku Shesham, and Unni Mukundan’s Jai Ganesh, from its theatres.
What were the disagreements between PVR and the producers' association? What's FEFKA's role in this? Here's all you need to know about the controversy:
Explained: PVR-INOX to Now Screen Malayalam Films Following Tiff With Producers
1. Film Exhibition in the Digital Era
Before we get into the dispute between the PVR group and the producers' union, it's important to understand how film exhibition works in the digital era. Unlike earlier, when film reels were used for projection in theatres, producers now use virtual prints to digitally project their films.
This requires a technology and system to ensure seamless sharing without piracy issues.
Content sharing companies or service providers like QUBE, TRS, Sony, and UFO provide encrypted, high-quality films that can be easily accessible through satellite, server, or hard disks.
These films are protected, encrypted, and accessible through a key that works only for a limited time.
For this, producers have to pay a virtual print fee.
But, what's a Virtual Print Fee (VPF)?
The Virtual Print Fee (VPF) is a subsidy paid by film distributors to film exhibitors for purchasing projection equipment for digital cinema. This fee is paid per movie booking to match the savings from not shipping a film print and redistribute the savings realized by studios using digital distribution instead of film print distribution.
The producers' council and the PVR INOX group had disagreements over the cost of VPF.
Expand2. Dispute Between PVR INOX & KFPA
Two years ago, the KFPA launched a facility called the Producers Digital Cinema (PDC) to avoid the high fees charged by existing service providers like QUBE, UFO, and Sony, which negatively impact the producers' revenue. PDC, on the other hand, charges reasonable fees for the service, benefiting them.
Although the association has been attempting to reach several theatres to use their technology, large multiplexes like PVR-INOX, which have contracts with existing service providers, are unable to work with them.
According to reports, the dispute escalated when the newly-opened PVR-INOX theatre at Kochi's Forum Mall refused to use PDC, citing a contract with QUBE.
The multiplex chain stopped screening Malayalam films across the country after the KFPA stuck to its position that their content should be released at the screens in Forum Mall at a low VPF using the films mastered at the PDC.
In an interview with The Indian Express, Subramanian, aka Evershine Mani, the Secretary of the Film Distribution Association of Kerala, criticized the PVR INOX group for stopping the screening of Malayalam films, and explained how service providers like QUBE, UFO and Sony charge exorbitant fees (VPF) from producers for virtual print services for theatres and multiplexes.
"For one week, they charge Rs 11,500. If it is for multiplexes with four or five screens, they charge Rs 24,500. For one show, Rs 450… like that, they have many schemes," he told the publication.
"We started our own content mastering unit two years back called PDC. Gradually, we are asking all theatres to change to our content mastering scheme because our charges are just Rs 3500 per week, Rs 5500 for a lifetime, and in multiplexes, it will be Rs 7500. This will hugely benefit the producers, who are already losing money while making the film and distributing it."
Subramanian added.In addition to new releases, the multiplex chain also pulled out running Malayalam hits like Blessy’s Aadujeevitham, AD Girish’s Premalu, Mammootty's Brahmayugam, and Chidambaram’s Manjummal Boys from its theatres. Moreover, the company has also stopped showing dubbed Malayalam movies.
Expand3. PVR-INOX'S Statement Amid Tiff
Amid the dispute, Kamal Gianchandani, the CEO of PVR-INOX, had claimed that the KFPA is forcing them to opt for PDC, which he believes is against the law and is prohibitive under it.
Gianchandani released an official statement on X (formerly Twitter) on 11 April, which said, "At the outset, we would like to express our sincere appreciation to all our Producer and Distributor friends in Malayalam Film Industry for their unwavering support for the theatrical platform and their significant contribution to the revival of theatres post Covid-19. No one holds greater respect for all the Producers releasing their films in our theatres than all of us at PVRINOX.”
The statement also addressed the issue with the newly-launched PVR-INOX theatre in Kochi. "Our cinemas have been advised by the Association to source Malayalam movie content exclusively through one channel i.e. through the content mastering and distribution network run by the association. Such an action of forcing an exhibitor to procure content from only one source is anticompetitive in nature and prohibited under the law. As a law-abiding member of Indian Film Industry, we are unable to comply with this advice," it further read.
Have a look at it here:
Expand4. KFPA to Hold Talks With PVR-INOX
According to The Hindu, KFPA secretary B Rakesh announced that PVR INOX will resume screening Malayalam movies and is ready to hold talks within a week to resolve the pending issues.
In continuation of the report, FEFKA's general secretary B Unnikrishnan also expressed his gratitude to MA Yusuff Ali, chairman of the Lulu Group, who intervened to resolve the deadlock as the multiplex player has multiple screens in Thiruvananthapuram and Kochi.
As per The Hindu, filmmaker Blessy said that FEFKA's intervention was crucial in resolving the conflict, as the FEFKA suffered considerable loss after their films were pulled out from PVR's screens.
He added that a planned protest in front of PVR Cinemas in Lulu Mall was called off following the truce.
(With inputs from The Indian Express, The Hindu, and The Telegraph.
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)
Expand
Film Exhibition in the Digital Era
Before we get into the dispute between the PVR group and the producers' union, it's important to understand how film exhibition works in the digital era. Unlike earlier, when film reels were used for projection in theatres, producers now use virtual prints to digitally project their films.
This requires a technology and system to ensure seamless sharing without piracy issues.
Content sharing companies or service providers like QUBE, TRS, Sony, and UFO provide encrypted, high-quality films that can be easily accessible through satellite, server, or hard disks.
These films are protected, encrypted, and accessible through a key that works only for a limited time.
For this, producers have to pay a virtual print fee.
But, what's a Virtual Print Fee (VPF)?
The Virtual Print Fee (VPF) is a subsidy paid by film distributors to film exhibitors for purchasing projection equipment for digital cinema. This fee is paid per movie booking to match the savings from not shipping a film print and redistribute the savings realized by studios using digital distribution instead of film print distribution.
The producers' council and the PVR INOX group had disagreements over the cost of VPF.
Dispute Between PVR INOX & KFPA
Two years ago, the KFPA launched a facility called the Producers Digital Cinema (PDC) to avoid the high fees charged by existing service providers like QUBE, UFO, and Sony, which negatively impact the producers' revenue. PDC, on the other hand, charges reasonable fees for the service, benefiting them.
Although the association has been attempting to reach several theatres to use their technology, large multiplexes like PVR-INOX, which have contracts with existing service providers, are unable to work with them.
According to reports, the dispute escalated when the newly-opened PVR-INOX theatre at Kochi's Forum Mall refused to use PDC, citing a contract with QUBE.
The multiplex chain stopped screening Malayalam films across the country after the KFPA stuck to its position that their content should be released at the screens in Forum Mall at a low VPF using the films mastered at the PDC.
In an interview with The Indian Express, Subramanian, aka Evershine Mani, the Secretary of the Film Distribution Association of Kerala, criticized the PVR INOX group for stopping the screening of Malayalam films, and explained how service providers like QUBE, UFO and Sony charge exorbitant fees (VPF) from producers for virtual print services for theatres and multiplexes.
"For one week, they charge Rs 11,500. If it is for multiplexes with four or five screens, they charge Rs 24,500. For one show, Rs 450… like that, they have many schemes," he told the publication.
"We started our own content mastering unit two years back called PDC. Gradually, we are asking all theatres to change to our content mastering scheme because our charges are just Rs 3500 per week, Rs 5500 for a lifetime, and in multiplexes, it will be Rs 7500. This will hugely benefit the producers, who are already losing money while making the film and distributing it."Subramanian added.
In addition to new releases, the multiplex chain also pulled out running Malayalam hits like Blessy’s Aadujeevitham, AD Girish’s Premalu, Mammootty's Brahmayugam, and Chidambaram’s Manjummal Boys from its theatres. Moreover, the company has also stopped showing dubbed Malayalam movies.
PVR-INOX'S Statement Amid Tiff
Amid the dispute, Kamal Gianchandani, the CEO of PVR-INOX, had claimed that the KFPA is forcing them to opt for PDC, which he believes is against the law and is prohibitive under it.
Gianchandani released an official statement on X (formerly Twitter) on 11 April, which said, "At the outset, we would like to express our sincere appreciation to all our Producer and Distributor friends in Malayalam Film Industry for their unwavering support for the theatrical platform and their significant contribution to the revival of theatres post Covid-19. No one holds greater respect for all the Producers releasing their films in our theatres than all of us at PVRINOX.”
The statement also addressed the issue with the newly-launched PVR-INOX theatre in Kochi. "Our cinemas have been advised by the Association to source Malayalam movie content exclusively through one channel i.e. through the content mastering and distribution network run by the association. Such an action of forcing an exhibitor to procure content from only one source is anticompetitive in nature and prohibited under the law. As a law-abiding member of Indian Film Industry, we are unable to comply with this advice," it further read.
Have a look at it here:
KFPA to Hold Talks With PVR-INOX
According to The Hindu, KFPA secretary B Rakesh announced that PVR INOX will resume screening Malayalam movies and is ready to hold talks within a week to resolve the pending issues.
In continuation of the report, FEFKA's general secretary B Unnikrishnan also expressed his gratitude to MA Yusuff Ali, chairman of the Lulu Group, who intervened to resolve the deadlock as the multiplex player has multiple screens in Thiruvananthapuram and Kochi.
As per The Hindu, filmmaker Blessy said that FEFKA's intervention was crucial in resolving the conflict, as the FEFKA suffered considerable loss after their films were pulled out from PVR's screens.
He added that a planned protest in front of PVR Cinemas in Lulu Mall was called off following the truce.
(With inputs from The Indian Express, The Hindu, and The Telegraph.
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)