MUMBAI (Reuters) - Bollywood could face a virtual shutdown after a dispute on revenue sharing between multiplex owners and film producers, leading to a freeze on marketing and release of all films after April 4.While film producers are demanding a 50:50 share in box office revenues, multiplexes favour a performance-linked revenue sharing model, based on the film's budget, star-power and other such criteria.
"Marketing and distribution of all new films set to release from April 4 onwards has been suspended," producer Mukesh Bhatt, told reporters on Monday, on behalf of Mumbai's film producers.
On Tuesday, multiplex owners responded to the freeze, saying the producers were being unreasonable in their demands, and that grading a film on the basis of its box office performance was the best revenue-sharing model.
The city's Hindi film industry produces around 1,000 films a year.
Several big budget films were set to release in that period, and as much as 2.5-3.0 billion rupees riding on the first quarter on these films, Priti Shahani, Vice President of Indian Films, said.
Trade analyst Komal Nahta said the two sides had no choice but to reach a settlement on the issue.
Tushar Dhingra, chief operating officer of Big Cinemas, said he was hopeful of a solution to the problem soon.
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