CCI seeks comments on PVR INOX proposal to end VPF and upfront producer payments
PVR INOX has proposed replacing virtual print fees and upfront producer payments with either per-show exhibition charges or a revenue-share model. The commitments would take effect 120 days after CCI acceptance, with pricing reviewed every three years.
What happened
CCI has sought public comments on PVR INOX’s proposal to end VPF and all upfront producer payments. Producers could instead choose per-show exhibition fees or a
Key facts
- 120 days
- Rs 450 per show on standard screens
- Rs 600 per show on premium screens
- Rs 250 per show after 60 shows on standard screens
- Rs 350 per show after 60 shows on premium screens
- 7.5% maximum reduction in producer net box-office share
- three-year review cycle
- October 2026 comment deadline
Why this matters
The proposed producer-payment overhaul may reshape multiplex bargaining power and partnership structures, creating opportunities to reassess distribution alliances, content commitments, and consolidation economics.
What to watch
- CCI comment deadline, identities of submitting stakeholders and whether producer associations jointly oppose fixed per-show charges.
- Whether CCI acceptance includes monitoring, non-discrimination, publication or audit requirements.
- Final choice between per-show fees, revenue share, or a hybrid model, including treatment of regional and small-budget films.
- Producer revenue-share percentages, minimum guarantees, settlement timing and any caps on exhibition charges.
- Changes in screen allocation or showtime access for smaller films following implementation.
- PVR INOX commentary on EBITDA impact, other operating income, film-rental costs and pricing actions in post-implementation earnings calls.
- PVR INOX is likely to engage major studios, producer bodies and regional distributors to build support for a preferred revenue-share or per-show structure before CCI's final decision.
- The company may publish standardized rate cards, title-performance thresholds or dispute-resolution mechanisms to demonstrate that the replacement model is transparent and non-discriminatory.
- Producers may push for differentiated terms for small, regional and non-star-driven films, including lower minimum charges or release-window protections.
- Rival multiplex chains may reassess their own VPF, marketing-support and settlement practices if CCI establishes an industry benchmark.
- Studios could accelerate direct negotiations around screen allocation, showtimes and promotional commitments, as the loss of upfront payments increases the importance of opening-weekend execution.