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AMC-Carmike deal a mighty blow to TFI
By: Tupaki Desk | 22 Dec 2016 9:09 AM
Tollywood is already facing lots of hardships due to demonetisation in the domestic circuit. Now, Even the revenue in the Overseas market is likely to fall.
Recently, China-based AMC Entertainment Holdings, which is already known as World's largest chain with as many as 5,426 screens under it control, cracked a huge deal. AMC will be acquiring 2,954 screens of Carmike in USA by shelling out 1.2 billion. This deal is expected to close even before Donald Trump's swearing-in ceremony on January 20th, 2017.
Usually, Carmike offers 65-70 percent of the revenue to the Overseas Distributors if their film grosses over $1 million. The percentage will vary for films grossing less than $1 million and more then $1.5 million. Whereas, AMC offers anywhere between 45-50 percent of revenue to the Distributors. The percentage even goes down further in places such as New York.
Distributors are hesitating to offer fancy prices for even crazy projects. This downward trend will have a major impact on the pre-release business of Telugu films. A lot depends on whether or not Sankranthi releases fetch profits for the Overseas Distributors.
Recently, China-based AMC Entertainment Holdings, which is already known as World's largest chain with as many as 5,426 screens under it control, cracked a huge deal. AMC will be acquiring 2,954 screens of Carmike in USA by shelling out 1.2 billion. This deal is expected to close even before Donald Trump's swearing-in ceremony on January 20th, 2017.
Usually, Carmike offers 65-70 percent of the revenue to the Overseas Distributors if their film grosses over $1 million. The percentage will vary for films grossing less than $1 million and more then $1.5 million. Whereas, AMC offers anywhere between 45-50 percent of revenue to the Distributors. The percentage even goes down further in places such as New York.
Distributors are hesitating to offer fancy prices for even crazy projects. This downward trend will have a major impact on the pre-release business of Telugu films. A lot depends on whether or not Sankranthi releases fetch profits for the Overseas Distributors.