PRODUCERS PETITION THE CCCA...

Winds of change in business patterns, likely
By MSM Desai
The entire business pattern in the film industry may soon see a sea change if the producers have their way. The executive committee of the Central Circuit Cine Association is meeting in Mumbai on June 19 to discuss the producers’ demand for reduction in the period of distribution rights and sale of cable and satellite rights.

The CCCA stamp for changes in the pattern of business practice is essential since it represents one of the biggest territories, encompassing entire Rajasthan, Madhya Pradesh and Vidarbha and parts of North Maharasthra. If the CCCA agrees to a change, other constituents of the Film Distributors Council, Motion Picture Association of Delhi, Eastern India Motion Picture Association of Calcutta, and the distributors association of Punjab will have to fall in line, since the CCCA chief, Santosh Singh Jain happens to be a powerful force behind the FDC.

Tilak Raj Magan, general secretary of the Film Federation of India said the suggestion was part of the follow-up to the recent FICCI Conference. "We are trying to bring all the three sectors together, by establishing links between the producers, distributors and exhibitors to remove irritant issues hanging fire for the last few years, in the changing economic scenario. We have to address these issues and sort out our grievances amicably. Since the members of the CCCA are meeting in Mumbai, we will hold talks with them to see if the business patterns can be changed in the present context. We will hold another meeting with other groups of distributors to eliminate any irritants and create a climate of inter-sector co-ordination," he explained.

The need for a re-think on the pattern of business is being felt not only by the producers but also the distributors because satellite and television rights have begun to fetch more revenue than ever before. What has shaken the distributors is the ratio of failures which has increased over the years, resulting in heavy losses to them. Despite this, some producers have been selling the satellite rights of their films within the stipulated period of five years as per the agreement signed between the FDC members and the Film Makers Combine, ten years ago.

Since then, the whole economics of film business has seen drastic changes. The run of films has been reduced to two to three weeks in the case of a flop or average film. Unlike in the past, the recovery of films has been faster, and the distributor can recover his investments within a month if a film is a superhit or hit.

The agreement has almost become null and void, because the FMC has become defunct now that the Film Producers Guild of India and the Association of Motion Picture & TV Programme Producers have walked out of it. What remains of the FMC are the constituents, Indian Motion Picture Producers Association and Western India Film Producers Association in which very few producers are active.

Meanwhile, the Guild and the AMPTPP have together revived the dormant All India Film Producers Council whose members are powerful and more active. It is this section of producers who seek a fresh look at the business pattern.

There was a time when distributors used to sign films for a duration of seven to ten years, depending upon the relationship between producers and distributors. This was when films used to run for a minimum of ten to 25 weeks on merit, since they did not have any competition from satellite and cable TV.

Over the last six years, film business has been reduced to the first three weeks. If a film becomes a hit, the distributors recover their share within that period but if a film fails at the box-office, the recovery of investments takes longer.

And distributors who have suffered losses obviously expect a share in the sale of satellite rights. Distributors claim that most producers do not share the losses with them.