Harry Potter: How Multiplexes-Distributors Stalemate Was Broken

Harry Potter And The Deathly Hallows Part 2 and its dubbed Hindi version almost did not release in the six national multiplex chains last Friday (15th July). Since the agreement for revenue-sharing terms between the multiplexes and the distributors expired on 30th June 2011 and since a new agreement has not yet been signed, the Multiplex Association of India (MAI) wanted to part with a lower percentage of revenue to the distributor of Harry Potter. Although the distributors of Zindagi Na Milegi Dobara are being given 50% of net collections (as per the expired agreement) in the first week, it is for the Hollywood films that the MAI wanted to increase the share of its members while giving lesser amounts to the distributors of the films.

There was tension and high drama till the eleventh hour with Warner Bros. insisting that it wouldn’t release the film in the multiplex chains if it was not given 50%

There was tension and high drama till the eleventh hour with Warner Bros. insisting that it wouldn’t release the film in the multiplex chains if it was not given 50% of the net collections in the first week and, likewise, the same percentage share as given to distributors of Bollywood films in the subsequent weeks too. Ultimately, a middle route was adopted on Thursday night and the impasse was broken. The MAI decided to pay to Warner and its distributors the same percentage share which it would pay to the distributors/studios of the Hollywood films in the next four weeks. Due to all this tamasha till Thursday night, there was no advance booking for Harry Potter in a single property of the national multiplex chains. Also, since the stalemate was reported in the press, the public assumed, the film would not be screened in the multiplexes.  This did affect collections on the first day.