Jana Nayagan, starring Vijay, and Sivakarthikeyan's Parasakthi are among the major releases for the festive release of Pongal. While both films are creating strong pre-release interest, the film is reportedly facing issues with theatrical revenue distribution, underscoring the wider challenges facing exhibitors.
Tiruppur Subramaniam, president of the Tamil Nadu Theatres Owners Association, told Puthiya Thalaimurai that exhibitors are under strain due to aggressive revenue-sharing terms. He said the makers of Jana Nayagan are demanding as much as 75 to 80 per cent of the theatre collections, adding that a similar 75:25 sharing model for Vijay's earlier film The Greatest of All Time (GOAT) had led to losses for theatre owners. He maintained that a 50:50 or 60:40 split would be a more sustainable model for industry.
Elaborating on the issue, the producer broke down the economics of a single ticket to highlight the pressure on exhibitors. He said that while Jana Nayagan and Parasakthi are seeing strong audience interest, a ticket priced at Rs 190 carries a tax component of Rs 42. If producers take 75 per cent of the remaining amount, theatres are left with just Rs 37 per ticket. Questioning the sustainability of such a model, he asked how exhibitors are expected to run theatres, pay staff salaries, and meet electricity and maintenance costs with such slim margins.
Tiruppur Subramaniam stressed that theatre owners are not opposed to revenue sharing, stating that exhibitors are willing to part with as much as 70 per cent of collections. However, he said producers are demanding 75 to 80 per cent even in centres such as Tirunelveli, questioning the viability of such arrangements. "What do we get in return?" he asked, adding that the terms offer little incentive for exhibitors. Jana Nayagan has around 60 per cent audience interest in Kerala and Palakkad, rising to about 75 per cent in Coimbatore, he revealed. He further added that such revenue is rare even in Kerala and argued that a 75 per cent share is abnormal demand contributing to the financial strain on theatres in Tamil Nadu.
He attributed the slow pace of advance booking to the demand for a 75 to 80 per cent revenue share. Rejecting claims of political or external pressure, he said no government or corporate entity was involved, emphasising that the issue is purely business-driven.
While Jana Nayagan is slated for release on January 9, Parasakthi will hit theatres a day later on January 10.
