Tamil film industry in crisis after standoff with service providers

Rajinikanth

The Tamil film industry has suffered a major setback following its standoff with Digital Service providers (DSPs) in the state, which eventually culminated into an indefinite strike from March 1. The ban on new releases has posed a financial crisis for the industry in Tamil Nadu, with theatre owners now releasing old outings to keep cinema halls running.

The Tamil Nadu Film Producers Council (TFPC) and DSP are at loggerheads over the pricing of the Virtual Print Fee (VPF). DSPs supply equipment to project films in theatres, using satellites, and levy a charge (VPF) for this service, which is borne by producers and theatre owners. The TFPC has been protesting against the monopoly of DSPs like the UFO Moviez and QUBE Cinemas Technologies, which apparently levy exorbitant VPF.

In addition to the ongoing protest by the TFPC, the Tamil Nadu Film Exhibitors Association (TNFEA) which has been urging the state government to remove the eight per cent Local Body Entertainment Tax levied along with the goods and services tax (GST), also shut down theatres yesterday.

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