Sony settles for lower share

Eros still at the negotiating table.

The informal alliance between Sony Pictures and Eros International in their parleys with multiplex owners for their Diwali releases - Saawariya and Om Shanti Om, respectively - has broken down. Sony has reached an agreement to release its film at multiplexes for a lower revenue than it had sought earlier

Sony and Eros had a few days back approached theatre chains together, demanding 50 per cent of the ticket sales in the first two weeks and 40 per cent in the third and fourth.

After much haggling, Sony has 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.

In Delhi, the revenue share will be the same in the first week, but a little higher in the second and third, 45 per cent and 35 per cent, respectively. The share for the fourth week will be decided on the basis of the film's box office performance.

When contacted, Sony Pictures managing director Uday Singh confirmed the development.

Eros, on the other hand, is still at the negotiating table and is learnt to have signed up only with Inox Leisure so far, but revenue sharing terms have not been finalised as yet.

"Eros International is a long-term player and we are hoping to sign a deal which is a win-win situation for both," said Tushar Dhingra, COO, Adlabs Cinemas.

Despite putting up a united front in the beginning, Sony has now broken away as it would stand to lose more than Eros.

Sony decided to deal with multiplex owners directly, while Eros has re-sold Om Shanti Om's distribution rights to individual distributors in some territories, after it acquired the worldwide distribution rights from Shah Rukh Khan's Red Chillies Entertainment.

With this deal, Hollywood's Sony Pictures, which marks its entry into Bollywood with Saawariya, has failed to match filmmaker Yash Chopra's revenue share terms.

Early this year, Chopra had reached a deal with movie exhibitors for 50 per cent of the revenue earned from ticket sales in the first week, 45 per cent in the second and 40 per cent in the third and fourth week, for five films under the banner of Yash Raj Films.

Meanwhile, theatre chains are readying Saawariya's show schedule. While Shringar Cinemas and Adlabs Cinemas are hoping to open advance booking on November 3, PVR Cinemas will open advance bookings early next week.

"We need time to finalise programming schedules. Also, negotiations with Eros International are still on and things should materialise by early next week," said Gautam Datta, chief - marketing, PVR Cinemas.