TFPC Strike Explained | We haven’t increasing the prices in 10 years: Digital Service Providers


TFPC StrikeTFPC Strike The TFPC has deserted a new offer from a Digital Service Providers, going forward with a strike from Mar 16.

In a strike of outrageous proportions, a Tamil Film Producers Council have announced a finish shutdown where prolongation and post-production work has been stalled completely. The TFPC has deserted a new offer from a Digital Service Providers, going forward with a strike from Mar 16. The shutdown comes during a indicate where there hasn’t been any new releases for dual weeks. In an progressing report, we had reported a side of a Producers charting out their reasons behind a strike. In this piece, we pronounce to Jayendra Panchapakesan, co-founder, Qube Cinemas to get Digital Service Providers’ side of a story.

The producers have claimed that differential rates are charged for Hollywood films, that Hollywood films get a reduce one-time assign than Tamil films.

It is not loyal that we assign reduce rates for Hollywood films. Our rate for Hollywood films is Rs 1000 per show/per shade since it is Rs 500 (Rs 450 in a new tariff) for Tamil films. Also, they compensate charges alone for mastering, pivotal government that are supposing giveaway to a producers. Thus, a smallest billing generally tends to come adult to Rs 10,000 irrespective of their run duration in a theatres.

I am not certain how producers found out that we levied a prosaic assign of usually Rs 10,000 as there are trusted contracts that even other Hollywood studios are not arcane to. Also, we did uncover invoices of a charges we levied for Hollywood to Vishal, SR Prabhu and a members of a council. But to no effect.

Also Read | TFPC strike explained: Why Tamil film producers are refusing to behind down

Why are a producers being asked to compensate for a record up-gradation in theatres?

Earlier, a projectors used to cost usually a integrate of lakhs and a producers used to compensate a aloft cost for any imitation (around Rs 60,000 per print). But now, interjection to a costly apparatus commissioned in theatres, cost per imitation has come down to Rs 15,000. Isn’t it satisfactory for a entertainment owners to ask producers to share my projector cost in a prolonged term? As a singular producer, they spend a partial of what they save from regulating digital prints as VPF.

And distinct film projectors that have a prolonged shelf life and need low maintenance, these projectors need to be updated frequently. The E cinema projectors had to be altered each 3-4 years. While D cinemas have a partially longer shelf life, they still don’t have a life of a film projector.

(In turn, Theatre owners compensate their grant to a Digital Service Providers with a share in their promotion revenue. This varies with opposite theatres in suitability to a agreement they have with a DSPs)

You have mentioned that we yield several associated services for free. Can we explain what these are and because it is of substantial value?

We also offer mastering, calm duplication, security, debate watermarking, pivotal government and logistics. If we have to play a film 5 years down a road, how are we going to play it? In this case, there is no need to remaster it. Our network and bandwidth also concede producers to revise their calm after release. Furthermore, Qube has archived each singular film finished digitally — if a producers have a lifetime license, there is not most cost when it needs to be re-released. Take Mersal for example, a film has been re-released in 30-40 screens with no additional cost as even a changeable assign (change in screens) is included. No other use provider has given this for free.

Also, we are a usually ones who offer debate watermarking in E cinema. If a video is being shot on a Handycam, from a assembly we have ways of anticipating out that entertainment it was shot in. We have identified such theatres several times and a theatres have been closed. This watermark can’t be fudged with even after a film is pirated.

Producers have claimed on several occasions that a VPF charges are unreasonable and there has been a cost hike.

We haven’t increasing a rates in a past 10 years. In fact, they have usually reduced.

On a other hand, a cost of digital prints is 0.5-1.7% of a cost of a film depending on a bill of a film. No matter a rebate we give, this cut will not change a fortunes of a film. In fact, around 108 films, final year have paid us an normal VPF (per screen) of reduction than Rs 10,000. The sum perceived by Qube from these films would Rs 5.66 crores for screening them over 8140 screens.

Some lifetime run VPF averages (per screen)

A film runs for reduction than dual weeks: Rs 6,000 to Rs 7,500
A sincerely behaving film: Rs 10,000-13,000
An unusually behaving film: Rs 15,000-18,000

So a boost in cost due to a change from E Cinema (1k projectors) to D cinema (2k cinema)?

It is an attention up-gradation. Technology is constantly changing these days. In a time of Netflix and Amazon Prime, if we don’t give them quality, it will be tough to move a assembly to a theatres.

It is pronounced there are going to be new players who are brought in.

In a final 3 years, 3 new players have come in. When we are new, we apparently wish to constraint a market. But have they been means to offer cheaper prices? With a kind of investment in play, it is not possible. If they move in a actor who is not in a DCI space and functions in a E cinema space who competence be means to offer most reduce rates — is that a need of a industry? Nobody wants to go back in time. We are fine with new players. But have their confidence levels been checked?

Was there a nightfall proviso that was mentioned to a producers before?

No decisive time support was mentioned by us. It is a preference that a attention and a exhibitors have to take. Either they should confirm to not ascent anymore or exhibitors contingency come to an agreement to not get a assistance of a producers henceforth. We aren’t a people to confirm this. The producers have to lay down with a exhibitors and DSPs to speak about it. They can’t make an overnight preference to stop profitable VPF — what about a crores of income we have invested?

The lapse on investment prescribed by Hollywood standards is 7% and this is with a low cost of credit accessible in a United States. Keeping in mind a borrowing rates, we are nowhere even tighten to a 7% returns. We have invited a producers to reason an review and check a earnings that we are making. See if we are creation income palm over fist, and afterwards decide. They aren’t prepared to mind to reasonable arguments.

However, Andhra Pradesh and Telangana have concluded to a negotiated price.

All a 5 southern states got together and set adult a Joint Action Council to negotiate rates. Andhra Pradesh and Telangana concluded to a negotiated prices, Kerala didn’t have an emanate from a commencement and have agreed. Karnataka, as of Tuesday, has concluded to recover films. The talks are still going on though they have motionless to recover films. That usually leaves Tamil Nadu — who have their possess reasons for it.

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