Dispute with Multiplex Chains Resolved


 

TIDMUMP 
 
RNS Number : 7279T 
UMP PLC 
11 June 2009 
 
 
UMP Plc 
                                                                    11 June 2009 
Dispute with Multiplex Chains Resolved 
Further to the announcement on 7 May 2009UMP Plc (AIM: UMP, the 'Company')is 
pleased to announce that the discussions between the United Producers and 
Distributors Forum ('UPDF') and the National Multiplex Cinema Chains ('NMCC') in 
India regarding the revenue sharing model have concluded and it is expected that 
producers will start releasing new Bollywood films in theatres across India on 
12 June 2009. 
Pursuant to the two month long negotiations between UPDF and MMCC, it has been 
agreed that:- 
Revenue Sharing Model 
·Producer and distributor revenue share of the net box office collections 
('NBOC') will be as follows - 50 per cent. in week 1, 42.5 per cent. in week 2, 
37.5 per cent. in week 3 and 30 per cent. from week 4 onwards. 
·Producers and distributors will be entitled to a bonus of 2.5 per cent. for 
week 1 and week 2 if NBOC exceeds Rs 175 million (approximately GBP 2.26 
million) in the lifetime of the film during its first theatrical release, across 
multiplex properties owned and operated by the six  national multiplex chains 
(Big, PVR, Fame, Fun, Inox and Cinemax). The NBOC threshold of Rs 175 million 
will be reviewed every six months. 
· Multiplex operators will be entitled to a rebate of 2.5 per cent. for week 2 
and week 3 if NBOC of any film released with more than 500 prints, is less than 
Rs 100 million (approximately GBP 1.29 million) across multiplex properties 
owned and operated by the 6 national chains (Big, PVR, Fame, Fun, Inox and 
Cinemax). The NBOC threshold of Rs 100 million will be reviewed every six 
months. 
·All Hollywood releases with more than 30 prints will be subject to the terms as 
stated above and Hollywood releases with 30 prints or less the will have the 
following revenue sharing terms - 45 per cent. in week 1, 35 per cent. in week 2 
and 30 per cent. from week 3 onwards. 
Distribution Strategy 
·Producers and distributors will be entitled to control the distribution 
strategy whilst multiplex operators will be entitled to control the showcasing 
rights (subject to show timings being mutually agreed for shows before 10am and 
after 11pm and a 40 min break between performances where there are  less than 7 
shows per day). 
·For limited releases (less than 500 prints), 5 per cent. of the prints will be 
made available as a discretionary quota to enable multiplex operators to feed 
strategic properties across all multiplexes. The cost of these prints will be 
borne by the exhibitor. 
 
The two month long negotiations have had no impact on UMP's release calendar. As 
announced on 7 May 2009, the Company will commence its 2009-2010 film releases 
in July 2009. 
 
 
This new revenue share model will help the Company to achieve increased 
theatrical revenues and the Directors believe that this will enhance earnings 
across the film slate. 
 
 
Enquiries: 
+----------------------------------+---------------------------------+ 
| UMP Plc                          |                                 | 
+----------------------------------+---------------------------------+ 
| B L Gautam - COO                 |                     +2307882715 | 
+----------------------------------+---------------------------------+ 
| Grant Thornton UK LLP (Nomad)    |             +44(0) 207 383 5100 | 
+----------------------------------+---------------------------------+ 
| Fiona Owen                       |                                 | 
+----------------------------------+---------------------------------+ 
| Jermyn Capital (Broker)          |            +44 (0) 207 399 2020 | 
+----------------------------------+---------------------------------+ 
| Vishal Sodha                     |                                 | 
+----------------------------------+---------------------------------+ 
|                                  |                                 | 
+----------------------------------+---------------------------------+ 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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