OSO beats Saawariya in revenue stakes

The first round in the cracker of a battle this Diwali may well go to Eros International, the distributor of Shah Rukh Khan-starrer Om Shanti Om.

In an agreement to be finalised tonight, it is likely to eke out a higher revenue share from multiplexes than Sony Pictures' Saawariya managed.

Eros, which acquired the worldwide distribution rights of Om Shanti Om from SRK-Farah Khan co-owned Red Chillies Entertainment, is expected to settle for a revenue share of 50 per cent in the first week, 45 per cent in the second, 35 per cent in the third and 30 per cent in the fourth, across the country.

Last week, Sony agreed to release Saawariya in Mumbai's multiplexes for 50 per cent of the revenue in the first week, 40 per cent in the second and 30 in the third.

However, in Delhi, the revenue share is at par with 50 per cent, 45 per cent and 35 per cent for week one, two and three, respectively.

But in case of Saawariya, the share for the fourth week will be decided on the basis of the film's box office performance.

Cinema hall owners are likely to open bookings of Om Shanti Om starting Wednesday. "We are hoping to finalise the deal today.

Multiplexes will then have two days for advance booking," said Ashish Saxena, COO (films cell), PVR Cinemas. Meanwhile, Inox Leisure, which had bought distribution rights of Om Shanti Om for Kolkata from Eros International, was the first to sign up for the movie.

However, the revenue sharing terms were not finalised then. It is believed that Inox Leisure will go by what other multiplexes have agreed to.

Sources said negotiations have been delayed also because the revenue sharing terms proposed by Eros International were not accepted by theatre chains in Gujarat.

However, industry players are certain that the production company and multiplex owners will reach common ground by Tuesday night.

A few days ago, Sony Pictures and Eros International had informally come together to negotiate with multiplexes for higher revenue share (50 per cent for the first and second weeks, and 40 per cent for the third and fourth weeks), this did not go down well with theatre owners who pulled down publicity material of both the films.

Later, the unwritten alliance between Sony and Eros broke, with Sony giving in to pressure and agreeing to lesser revenue sharing terms.