PVR INOX Limited has recently proposed a major change for the Indian film industry by suggesting the elimination of the Virtual Print Fee (VPF) that producers currently pay. This proposal has been sent to the Competition Commission of India (CCI), which is asking for feedback from the public and industry members until October 1, 2026.
The background of this proposal is linked to a case involving PVR INOX and The Film and Television Producers’ Guild of India Limited. Last year, the CCI initiated an investigation into allegations that PVR INOX was violating competition laws by continuing to charge the VPF. Some filmmakers raised concerns that this fee unfairly affected smaller producers, as it was not applied uniformly across all film projects.
In an effort to address these issues, PVR INOX has suggested that the VPF, along with any upfront payments from filmmakers, be completely removed within 120 days after the CCI accepts their commitments. Instead of the VPF, producers will have two options for covering exhibition costs. They can either pay a weekly charge per show for movie screening based on the type of screen (Rs. 450 for standard screens and Rs. 600 for premium screens), which would drop to Rs. 250 and Rs. 350 after the film has shown 60 times, or they can opt for a Revenue Share model where their existing box office share would decrease by a maximum of 7.5%. Both options would not require any upfront payment.
PVR INOX also plans to make this new framework permanent, although the rates could be reviewed every three years based on costs and discussions with producers. If approved, this change could significantly impact the ongoing debate over VPF and how films are distributed theatrically in India.
VPF has been a contentious issue in the industry. It is a fee multiplexes charge producers to help cover the costs of improving technology for better audience experiences, generally amounting to around Rs. 20,000 per screen. While some producers have argued against the indefinite charging of VPF, exhibitors maintain its necessity for maintaining and upgrading cinema technology.
In 2019, the concern over VPF gained more attention when producer Ronnie Screwvala filed a complaint against several multiplex chains, including PVR, alleging unfair practices related to the fee. While the CCI ruled in favor of the multiplexes, tensions continued, especially after incidents like the booking suspension of “Jolly LLB 3” when Viacom18 declined to pay the VPF.
This proposal arrives amidst various developments involving major film productions, revealing an evolving landscape for cinema distribution in India. The industry is hopeful that these changes will lead to fairer practices and a more equitable environment for all filmmakers.
