BIG DEVELOPMENT: PVR INOX proposes to SCRAP VPF for all films; move comes a year after Jolly LLB 3 controversy; Saiyaara, War 2 ‘sunset clause’ revelations
Here's the latest update from the Bollywood world:
The matter relates to Case No. 42 of 2023 involving The Movie and Television Producers’ Guild of India Limited and PVR INOX Limited. In September 2025, the CCI had directed an investigation into alleged contravention of Section 4 of the Competition Act. PVR INOX subsequently filed a commitment application under Section 48B of the Act.
Adding to this, As per the non-confidential summary, the CCI had prima facie raised concerns over PVR INOX's continued levy of VPF. Among the allegations were that certain Hollywood and Hindi movie producers were not required to pay VPF while others were, that the upfront payment could pose difficulties for small and medium-sized producers to be rolled out in cinemas, and that the charge was allegedly not linked to any specific service provided by PVR INOX.
Meanwhile, To address these concerns, PVR INOX has proposed that VPF – and, importantly, any upfront payment from movie producers irrespective of the language of the movie – will cease within 120 days from the date the CCI accepts the commitments.
Notably, Instead, producers would be given two choices. Under the first option, they can pay a weekly per-show Exhibition Service Charge (ESC) of Rs. 450 for standard screens and Rs. 600 for premium screens. After the movie completes 60 shows, the rates would fall to Rs. 250 and Rs. 350 respectively. Premium formats include IMAX, 4DX, Screen X, Luxe, etc.
As per the latest buzz, Alternatively, producers can opt for a Revised Revenue Share (RRS), under which their existing share of net box-office collections can be reduced by not more than 7.5% of the existing rate. The proposal stresses that neither option would involve an upfront payment.
In further updates, PVR INOX has offered to keep the framework in place permanently, though the ESC and RRS quantum may be reviewed every three years based on objective cost data and consultation with producers.
On top of that, If accepted, the proposal could mark a major change in the long-running debate over VPF and the economics of theatrical distribution in India.
What is VPF? VPF is a charge that big multiplex chains in India take from producers or distributors to help cover the cost of upgrading their technology, which is meant to give audiences a better movie experience. On average, this fee is around Rs. 20,000 per screen. For smaller cinema chains and non-2K theatres, this fee is collected by companies like UFO, Scrabble, Qube, etc., which provide digital cinema services.
Source: Bollywood Hungama