Film

Local filmmakers pay cinemas 50% to play their movies – is that too much?

Exhibitors and producers find themselves on opposite sides, in a debate sparked by the success of Mat Kilau

Updated 4 years ago · Published on 05 Jul 2022 5:00PM

Local filmmakers pay cinemas 50% to play their movies – is that too much?
The success of the local film industry appears to be hamstrung by various taxes, such as the 50% charge paid to exhibitors by local film producers. – Vibes file pic, July 5, 2022

by Wafa Aula

RECENTLY, to the amazement of netizens, actor and producer Asmawi Ani (Mawi) revealed the truth of the percentage amount that producers have to pay for film screenings on each cinema exhibitors.

Not only that, if the producer wants to extend the screening period, or how long their movie is in the cinemas, they have to agree to giving the exhibitors an even higher percentage.

The question is, is 50% the right amount to be given to exhibitors? Or is the figure too large to be borne by local producers, who often do not have the large capital required to make a film?

Review payment charges to exhibitors

President of the Association of Malaysian Artists (Seniman), Zed Zaidi thinks the percentage of payment given to exhibitors should be reduced to ensure that local producers are not required to pay such large amounts. 

"In my opinion, the amount of 50% payment to the cinema needs to be reviewed because the amount is quite large. It is not fair to the publishers while the 'tycoon' above is happy to make a profit.”

Seniman president Zed Zaidi. – File picture
Seniman president Zed Zaidi. – File picture

"That is not to mention the hidden charges by the exhibitors that will increase if the screening time is extended. That's why our local films can't survive. 

“Since the exhibitors will be dealing with the National Film Development Corporation (Finas) to obtain a licence, I think Finas can intervene on this issue.

"What are their actions against exhibitors who impose high charges on our film producers?" he asks.

Datuk Freddie Fernandez from Persatuan Karyawan Malaysia (Karyawan) also agreed with the proposal, feeling that exhibitors should reduce the percentage charge as they did not have to bear the cost of losses that film producers had to face.

Persatuan Karyawan Malaysia chief Datuk Freddie Fernandez. – Alif Omar/Vibes pic
Persatuan Karyawan Malaysia chief Datuk Freddie Fernandez. – Alif Omar/Vibes pic

“I also think that the total percentage given by the exhibitors should be reviewed. 50% is actually too much while they only bear the operating costs.

"If it can be reduced, it will give an advantage to our local artists to produce and screen their films in cinemas," he added.

Business remains business

However, producer and actor Raja Azmi believes that cinemas are businesses that have the right to put policies in accordance with their profit targets.

“I support the stage to take 50% of the total collection. If a production wants to make a film, they should be prepared for the risks that need to be taken. Only the exhibitors must also help promote our local films. 

“We have to understand that this is a business. The cinemas are also liable if they want to screen a film. 

“Imagine if the capacity of one hall is more than 100 people, but only 10 people come. They have taken a loss there," she said.

Producer and actress Raja Azmi. – Pic courtesy of Instagram @rajaazmi
Producer and actress Raja Azmi. – Pic courtesy of Instagram @rajaazmi

Speaking about the higher fee if a production wants to extend its screening period, Raja Azmi said the scenario could change if a film makes it to the box office charts. 

"Indeed, the cinema fee will increase by a small percentage if they want to screen the film for another week. For me, that is still worth it because at least our film is still being screened.

“However, the situation is different if your film enters the box office charts. The producers can discuss with the exhibitor for show times and the percentage taken. 

“Discussions can be done. Maybe compared to the 60% requested by the exhibitors, the producer can make a request to just pay 50% of the amount,” she said. 

Earlier, when the hit film Mat Kilau Kebangkitan Pahlawan recorded encouraging box office figures every day, producer and actor Asmawi Ani revealed the percentage of charges that have to be paid by local producers if they want to screen a film on cinema screens. – The Vibes, July 5, 2022

*this story originally appeared in our Malay-language sister portal Getaran

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