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India's Multiplex Giant May Scrap Film Producer Fees
12 Sep
Summary
- PVR INOX proposed ending Virtual Print Fee charges for film producers.
- The proposal was submitted to the Competition Commission of India.
- New payment options include weekly service charges or revenue share adjustments.
PVR INOX Limited has proposed to completely discontinue the Virtual Print Fee (VPF) charged to film producers, submitting this proposal to the Competition Commission of India (CCI). The CCI has invited public comments until October 1, 2026. This action stems from a CCI investigation initiated in September 2025 regarding alleged contraventions of the Competition Act by PVR INOX.
To address the CCI's concerns about inconsistent VPF application and potential burdens on smaller producers, PVR INOX offered to cease all VPF and upfront payments within 120 days of commitment acceptance. Producers can instead choose between a weekly Exhibition Service Charge (ESC) or a Revised Revenue Share (RRS).
The ESC option offers tiered weekly rates for standard and premium screens, decreasing after 60 shows. Alternatively, the RRS allows producers to reduce their existing net box-office collection share by no more than 7.5%. PVR INOX has committed to maintaining this framework permanently, with potential reviews every three years.
VPF is a charge levied by multiplex chains to cover technology upgrade costs, typically around Rs. 20,000 per screen. Producers have long argued for its indefinite removal. Previous disputes, including a 2025 incident involving 'Jolly LLB 3', highlighted industry tensions over VPF, leading to the CCI's intervention.
