The Kannada Film Producers Association has threatened to stop film releases as well as production activities from January 1, 2010, if the exhibitors do not switch over to the percentage system from the existing rental system for film exhibition.
This decision was taken by the Kannada Film Producers Association in an emergency meeting, which was held at Sadashivanagar Club in Bangalore on Friday. More than 100 members were present at the meeting.
The industry switched over to the rental system way back in 1975 following demands from the producers and distributors. In the rental system, the producer or the distributor had to pay a certain amount of rent on a weekly basis. The producer or the distributor is bound to pay the rent irrespective of the collections made by the film. At present, as the audiences are dwindling, it has become tough for the producers to release their films and pay the rent.
In percentage system, a mutually agreed portion of the total collections per week is kept by the theatres and the rest will be paid to the producers or distributors. This type of system is prevailing in Kerala and some parts of Tamil Nadu and Andhra Pradesh. The multiplexes in Bangalore also are following this system.
The Association has already written a letter to the Karnataka Film Chamber of Commerce, demanding the implementation of percentage system, but the Chamber has not responded positively. So, the Association has taken the decision to stop all the production activities and film releases from January 1until the old system is back. A core committee has been set up with Rajendra Singh Babu as the President to look after the affairs in this regard.
"We are in a dire situation and have to take several decisions to cut production costs. Changing to percentage system is one among that. As the Chamber of Commerce has not responded positively to our demand, we have taken the decision to stop the screening of the films to safeguard our interests," says Producers Association president K C N Chandrashekhar.
However KFCC president Dr. Jayamala has called a meeting of all wings of the film industry on November 16 to discuss this issue.
Source: FilmySouth
