The Hindu : 'Video piracy throwing cinemas out of business'

Online edition of India's National Newspaper
Saturday, Jun 21, 2003

Southern States

Southern States - Tamil Nadu

'Video piracy throwing cinemas out of business'

By T.S. Shankar

CHENNAI June 20. The increasing incidence of theatres being pulled down has not only shaken movie makers but also rattled the Kollywood stars, who are convinced that the "VCD and CD piracy" has ruined the Tamil film industry. At least 797 theatres have been closed in less than a year now.

Captains of the industry are struggling to keep the film cans away from "unscrupulous VCD operators", whose activities have resulted in closure of 2,400 cinema houses all over South India, 1,000 of them in Tamil Nadu alone, during the past five years.

While varied segments of the industry have made representations, at many seminars and public meetings, on how Tamil cinema is being ruined, the apex body, South Indian Film Chamber of Commerce, with more than 3,500 members, has also time and again urged the Governments to initiate concrete and urgent steps to save the film industry from an impending "total closure".

While the VCD menace plays the lead role in ruining the industry, entertainment and compounding tax, maintenance charges, screening of films aboard buses have compounded the crisis, what with dwindling attendance at theatres. Satellite channels are also telecasting films round-the-clock without paying any tax.

"The entire industry has to rise as one man and resolve to put up a stiff fight against the VCD menace and provide a new lease of life to the Tamil film industry", says Mohan Sharma, SIFCC president.

Appealing to the State Government to declare a five-year tax holiday, he sought tax exemption for films which were more than five years old.

Pointing out that under Sections 4 and 5 of the Tamil Nadu Cinematograph Act, cinema theatres fell under two categories for purposes of taxation — compounding and non-compounding systems — Mr. Sharma noted that in theatres in `B' and `C' groups in suburbs, the collection had fallen so drastically they were unable to meet even the compounding tax requirements.

Theatres in mofussil areas sought permission to pay tax on the basis of tickets sold and not at fixed rates. "This will go a long way in avoiding further difficulties to small theatre owners, who will otherwise be compelled to seek other business enterprises", he said.

Apart from seeking restoration of maintenance charges levied at Re. 1 per ticket in non-airconditioned theatres and at Rs. 2 in airconditioned cinemas, without attracting entertainment tax, so that facilities could be improved for viewers, Mr. Sharma wanted the "illegal practice" of screening of films aboard buses banned. "None of the Tamil film producers has given any right to anyone, other than theatre screening rights. Playing of video cassettes is totally illegal and against the Copyrights Act", Mr. Sharma said demanding that bus owners violating this rule be made liable for severe punishment.

He also urged sales tax exemption for outdoor units, equipment hirers, audio and video studios, laboratories and recording theatres. Mr. Sharma sought the help of the Chief Minister, Jayalalithaa, to redress the problems faced by the film industry. It hoped that being an "insider" herself, she could appreciate the problems.

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