With Ramayana: Part One nearing a pre-Diwali release, its distributor is using the film’s scale to reopen a debate Bollywood has avoided since 2009: how theatrical net collections are split between distributors and exhibitors.
The ask is layered, not one blanket deal
According to a Pinkvilla opinion piece, the distributor has tabled multiple proposals rather than a single term.
- 55% distributor share for the first 11 days, then a reversion to the existing structure.
- 60% in week one and 50% in week two, before standard slabs resume.
- Flat revenue-sharing terms linked to lifetime gross benchmarks instead of the week-wise model.
The 55% option is framed around the pre-Diwali period being soft for theatrical business, so a higher early share would help offset lower opening potential.
Why the 2009 slabs look outdated
The current arrangement dates to 2009. Distributors receive 50% in week one, 42.5% in week two, 37.5% in week three and 30% from week four onward, with a 2.5% incentive or penalty in the first two weeks depending on collection thresholds.
That structure was built to support multiplex expansion. The logic was that exhibitors needed a larger share to recover heavy capital investment in new cinemas. Historically, distributors had commanded 60-75% of net box office, sometimes up to 80%.
That expansion has plateaued. At the same time, theatrical business has become more backloaded. Films such as The Kashmir Files, Chhaava, Mahavatar Narasimha, Hanuman Ansh and Dhurandhar have earned a significant share after the third week. Under the current slabs, a film that holds strongly is effectively rewarded with a smaller distributor share.
Tentpole leverage is already normal elsewhere
Big films negotiating premium terms is not new. Avengers: Endgame reportedly secured around 65% of gross in the United States, against a typical studio share of 45-50%. In India, the same national chains already give major South Indian releases 55-60% in week one, and they allow South Indian films to release with four-week OTT windows while holding Hindi films to eight weeks. The inconsistency makes the Hindi distributor’s ask harder to dismiss.
What could replace the weekly slabs
The piece argues that one film, even one as big as Ramayana, may not have enough leverage this close to release. A collective push from Hindi producers and distributors would matter more. The cleaner fix would be flexible flat-sharing linked to lifetime gross, negotiated film by film: a Rs 300 crore net film could take a flat 50% through its run, while a Rs 500 crore-plus blockbuster could take 55%. That would reward staying power instead of penalising it.
Whether Ramayana changes the system or not, the conversation is long overdue.
Source: PINKVILLA
