1 week ago
CCI Seeks Public Comments on PVR INOX VPF Proposal
PVR INOX charges film producers a fee called the Virtual Print Fee for showing digital movies.
The Competition Commission of India is examining whether this practice could be an abuse of market power.
PVR INOX has proposed ending this upfront fee for every producer.
Instead, producers could pay a charge for each screening or use a revenue-sharing option.
The screening charge would depend on whether the cinema is standard or premium.
The charge would become lower after a film reaches 60 shows.
Under the other option, producers’ existing share of box-office revenue could fall by up to 7.5%.
The new system would begin 120 days after approval and could be reviewed every three years.
The Competition Commission of India invited public comments on PVR INOX’s proposal to discontinue Virtual Print Fee charges.
PVR INOX would stop collecting VPF or other upfront payments from all film producers, regardless of film language.
The proposed change would take effect 120 days after the CCI accepts the commitments.
Producers could choose exhibition service charges or a revenue-sharing model with a maximum 7.5% reduction in their existing box-office share.
Stakeholders can submit objections and suggestions by October 2026, while the arrangement would be reviewed every three years.
- Who
- The Competition Commission of India and PVR INOX are central to the proposal, which affects film producers.
- What
- PVR INOX has proposed ending Virtual Print Fee and other upfront payments, replacing them with alternative payment models.
- Where
- The proposal concerns film screenings at PVR INOX cinemas.
- When
- The CCI issued a prima facie order in September 2025; comments are invited until October 2026, and any accepted changes would begin after 120 days.
- Why
- The proposal follows CCI concerns about an alleged abuse of dominant position linked to Virtual Print Fee charges.
Regulatory concerns
PVR INOX proposal
Treatment of VPF charges
Regulatory concerns
The CCI’s September 2025 prima facie order directed an investigation into whether PVR INOX abused a dominant position in connection with VPF.
PVR INOX proposal
PVR INOX has proposed eliminating VPF and all other upfront payments from film producers.
Payment structure
Regulatory concerns
Stakeholders may submit objections and suggestions on whether the proposed replacement system is appropriate.
PVR INOX proposal
PVR INOX has offered a choice between per-show exhibition charges and a revenue-sharing model.
Key facts
- Standard-screen charge
- Rs 450 per show, falling to Rs 250 after 60 shows.
- Premium-screen charge
- Rs 600 per show, falling to Rs 350 after 60 shows.
- Revenue-sharing option
- A producer’s share of net box-office collections would be reduced by no more than 7.5% from the existing rate.
- Implementation timeline
- The changes would take effect 120 days after CCI acceptance.
- Duration
- PVR INOX proposed keeping the arrangement in place indefinitely.
- Review cycle
- The charges would be reviewed every three years to account for cost changes.
- Comment deadline
- Stakeholders can submit objections and suggestions by October 2026.
Sources
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