The Tamil Nadu Film Exhibitors’ Association and the Chennai, Chengalpattu, Kancheepuram and Tiruvallur Distributors’ Association said on Friday that they had decided to purchase theatrical rights of ‘big-budget’ movies only after watching their previews.
The decision reportedly comes after distributors of Rajinikanth’s Darbar , produced by Lyca Productions, said that they had suffered significant losses.
The federations also urged the State to remove the entertainment tax of 8% levied by local bodies, and ensure that new Tamil releases are broadcast on satellite channels and OTT platforms after 100 days and 8 weeks, respectively.
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T. Rajendar, president, Chennai, Chengalpattu, Kancheepuram and Tiruvallur Distributors’ Association districts, said that they would insist on watching the preview of the film if the producers insisted on selling the movie on a ‘minimum guarantee’ or ‘outright basis’.
“We have taken the decision due to an extraordinary situation. We are seeking support from Lyca Productions on a humanitarian basis, not on a legal basis. Many exhibitors were affected. Lyca Productions have said that they would look into the issue,” he said. Mr. Rajendar said that there would be an 18-member committee (9 each from both associations) to re-negotiate the financial terms between the two stakeholders.