Amid the legal battle over the attempt by the National Film Corporation to take over distribution from the private sector, a bitter dispute between film exhibitors and importers has plunged the film industry into further turmoil. At the centre of the dispute is the distribution of English language films by importers, with some exhibitors alleging [...]

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Exhibitors, English film importers standoff continues

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Amid the legal battle over the attempt by the National Film Corporation to take over distribution from the private sector, a bitter dispute between film exhibitors and importers has plunged the film industry into further turmoil.

At the centre of the dispute is the distribution of English language films by importers, with some exhibitors alleging that two particular importers were illegally trying to dictate terms to exhibitors by not distributing English films to their cinemas.

The crisis, which involves the NFC, film importers and exhibitors has already pushed back the release dates of two English films, namely the action thriller “The Equalizer 2,” starring Oscar winner Denzel Washington, and the science fiction / fantasy thriller “The Darkest Minds’’.

Anura Jasenthuliyana, managing director of Movie Works (Pvt) Ltd, told the Sunday Times that he owns 10 cinema halls; six of which have the latest technologies including 3D. He alleged that two particular importers of English films have not given films to his halls and to several others for the past one-and-a-half years. He claims discrimination and attempts by importers to put him and others out of business.

This month, Movie Works secured a temporary injunction from the District Court of Colombo against the two importers barring them from distributing any print of an English film imported with the approval of the NFC without giving a print to Movie Works. On Thursday, the court further extended the injunction order until August 30.

Mr Jasenthuliyana said that as the films are distributed using a national quota, every cinema that wishes to screen films that they wish to should be able to do so. The English film belt helps in supporting local films to sustain themselves even on a weaker run since the income from the English belt could be supplemented to make the cinema halls survive, he further claimed.

His views were echoed by Buddhi Keerthisena, president of the Film Exhibitors Association of Sri Lanka. He alleged that importers were making profits, but were not doing anything to uplift the local film industry. “We don’t want to fight each other and we also don’t oppose liberalisation. We would rather we come to an amicable settlement. But the importers have been creating problems by demanding that we enter into agreements illegally,” he claimed.

One importer at the centre of the controversy, who has been in the industry for over 65 years, however, strongly refuted the allegations.

He claimed that auditors hired by film companies had found that certain cinemas had understated their daily ticket sales revenue by several million rupees over time.

“The companies have asked us to collect the money that is due from these cinema halls. Most have now fallen in line and paid up, but several have not done so. The companies have told us not to give films to such halls. It is purely a commercial decision,” he insisted.

He also claimed that these cinema halls had charged patrons extra for 3D glasses, though they are not supposed to do so.

While questioning why the government would want to take over film distribution from the private sector suddenly after 18 years, the importer accused the NFC of trying to interfere in the distribution of films in a bid to protect wrongdoers.

Mr Jasenthuliyana however, pointed out that the NFC had noted in a letter to all English film importers, distribution circuits and exhibiters in March this year that the procedure for the charges for 3D glasses from 2015 to December 2017, had not been clearly communicated to the cinemas and had been considered as a grey area. As such, “importers should not hold any dispute on the levy of 3D glasses against supplying of English films to the English film exhibiting cinemas,” the letter sent by the NFC chairman stresses.

Meanwhile, the Colombo District Court has further extended an enjoining order against the decision by the NFC to allow it to distribute films. The enjoining order was issued last month in response to a petition filed by four film importers.

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