Cinema VinesIn a move that could reshape the economics of film distribution in India, PVR INOX Limited has announced its intention to abolish the Virtual Print Fee (VPF) it currently levies on film producers. The company has filed a proposal with the Competition Commission of India (CCI), inviting public and industry feedback until October 1, 2026. The VPF, a fee that has long been a point of contention between multiplex chains and production houses, would be eliminated within 120 days of the CCI accepting the commitments.
The proposal follows a 2023 investigation by the CCI, under Case No. 42, into alleged breaches of Section 4 of the Competition Act by PVR INOX. In September 2025, the commission had directed an inquiry into the company’s VPF practices and subsequently received a commitment application from PVR INOX under Section 48B. The CCI’s preliminary findings highlighted that the fee was inconsistently applied, with some Hollywood and Hindi producers exempt while others were charged, and that it could hinder smaller and medium‑sized producers from securing theatrical releases.
Under the new structure, producers would no longer face an upfront VPF payment. Instead, they can choose between two alternatives. The first option is a weekly Exhibition Service Charge (ESC) of ₹450 for standard screens and ₹600 for premium screens, which would reduce to ₹250 and ₹350 respectively after the film has completed 60 shows. Premium formats such as IMAX, 4DX, Screen X, and Luxe would be included in the higher rates. The second option offers a Revised Revenue Share (RRS) model, allowing producers to reduce their share of net box‑office collections by up to 7.5% of the existing rate, again without any upfront payment.
PVR INOX has indicated that the new fee framework could be maintained indefinitely, with the ESC and RRS rates subject to review every three years based on objective cost data and consultations with producers. The company’s move comes a year after the Jolly LLB 3 controversy and follows revelations about “sunset clauses” in the Saiyaara and War 2 agreements, which had sparked debate over the fairness of VPF and related charges.
Industry observers see the proposal as a significant shift in the long‑running debate over VPF and theatrical distribution economics in India. By removing the upfront fee and offering flexible, performance‑linked alternatives, PVR INOX aims to level the playing field for all producers while ensuring that multiplex chains can continue to invest in technology upgrades and improved audience experiences.
