Tamil Nadu Theatre and Multiplexes Owners Association has proposed a new set of regulations as part of a revised revenue-sharing model among producers, distributors and theatre owners.
In a statement, the association said, “At a time when we are growing joyously, things like taxation regulations, increase in maintenance costs, increase in personal tax, increase in employee salaries, are a big burden to the management and operation of theatres.”
As per the new model, theatre owners and producers would divide revenues based on the collections of a film across various audience centres, week by week.
The new model states that producers and theatre owners share profits on a 60:40 ratio for the first week collections in ‘A’ centres for Rajinikanth, Ajith and Vijay films. In B, C and D centres, the margin would be 65:35.
Surya, Dhanush, Jayam Ravi, Simbu, Sivakarthikeyan and Vijay Sethupathi are in tier 2 and the rest of the actors fall in tier 3 segment.
Tirupur Subramaniam, president of Tamil Nadu Theatre Owners Association, “It was a private memo meant only for the members of our association. But, it got leaked.”