UTV head sends out email asking producers to band together to decide on the best means to curb rising expenditures while making films

UTV head honcho Ronnie Screwvala sent out an e-mail on November 11 inviting the most powerful producers of B-Town Aamir Khan and Shah Rukh Khan included for a meeting at Yash Raj Studios on Tuesday, November 16 at 11 am.

Taking up Yash's mantle

Ronnie's mission is to discuss escalating costs of producing and marketing Hindi films and arriving at some sort of consensus for remedying that. Earlier, Yash Chopra took the initiative for such a meeting, but lack of solidarity in the industry aborted any plans for a meeting on the subject. Now, Screwvala has taken up the matter.

His main areas of concern are the spiraling expenditure on marketing a film which he thinks is money being splurged on (see box), "assuaging ourselves (the producers' fraternity) rather than money being spent to enlarge a market and grow the theatrical audience."

Aamir's in!

Realising the gravity of the endeavour, Aamir immediately agreed to be present at the meeting saying, "Count me in, Ronnie. 16th 11 am at Yashraj." Shah Rukh Khan is expected to fly back from Berlin where he's shooting to attend the meeting in Mumbai on Tuesday.

The whole endeavour of the meeting is to discuss areas where money is being unnecessarily spent in the filmmaking process.

Every leading producer from Karan Johar and Ekta Kapoor to Sajid Nadiadwala and Ramesh Taurani have agreed to attend the meeting, thereby making this the most collaborative attempt in B-Town among producers to meet and discuss budgetry hazards on an organised and coherent forum.

When contacted about this milestone meeting and asked if such a unified effort at economising on filmmaking costs was possible or even practical, Ronnie Screwvala replied, "Collectively and constructively, all is possible."

Ronnie Screwvala's E-mail

Dear All,

Yashji tried a month back to get all into one meet. I am once again writing to all that it would be indeed important for us to meet and we need owner/promoters and CEOs all to attend otherwise we should not make the effort.

The Key agenda point for discussion and if all share the same concern that yashji and I shared --that our marketing costs are soaring + we seem to be marketing --to ourselves and to assuage our own concerns --rather than money being spent to enlarge a market and grow the theatrical audience.

Also most are now spending more --as they seem to compete with each other --for noise level --rather than again --to get audiences in.

1 We now spend between a minimum of 15% - 100% of our COP on India marketing alone --(small movies marketing is 100% of COP).

2 If you apply the % spend to actual Nett Distributor share to each of us we spend close to 50% of our own theatrical revenue for domestic marketing ( not counting prints and overseas P&A).

3 If our single largest revenue stream has such a large direct cost --how do we see any commercial sense.

4 Some of you in this mail --may feel a little far removed --as you sell at premiums to Acquiring /Distribution companies --but it's a matter of less than 6 mths to one year when that also catches up --like the last year has caught up wth all on all their excesses --as finally no business can be sustanined long term with Cash Profits to all in value chain.

5 We can take a leaf of what the South industry does - you will be amazed and its just cause the audience gets used to it once we collectively decide on the decibel level of marketing.
I have three other equally important points --but this needs to be the focus.

I am happy to confirm --if we all confirm --to meet.
Yashji has kindly consented to have it at his venue.

However I must say --I am happy to lead this initiative for discussion provided we have the full quorum support and its not "delegated".

I need Karan (Johar), and Apurva (Mehta, CEO: Dharma) to attend.
Yashji, it is and Adi (Chopras) its critical you attend too.

I need Ekta Kapoor to come. Puneet (Kinra; CEO Balaji), I don't have her email, so please forward this to her and Tanuj (Garg; COO).

I need Dhilin (Mehta; Shree Ashtavinayak) to be there.

As also Sajid (Nadiadwala), please.

Ajay and Sanjeev (Bijli; PVR Pictures) --you get down from Delhi enough times now to sign your slate --to ensure you time this and be there with Kamal (Gianchandani).

Sunil and Jyoti you both need to be there and Vandana (Malik) please you too along with your colleague and ceo Sanjeev and Preeti please (Network 18).

Aamir (Khan) --you too have been a strong champion of this and so am suggesting this date --post you back from States this weekend.

Ritesh (Sidhwani) --I smsed you and you are back Saturday --so you need to be there.
Vidhu (Vinod Chopra) --We need the final voice and trust your not in LA next week when we can do this meet.

Madhu (Mantena) --We need your presence.

Kumarji and Rameshji (the Tauranis; TIPS) - we have discussed this and I think u share the same view and its
time we all meet to say the same thing.

Sanjay Bhansali - You represent a fund and this is an IMP one for them and you.
Shailendra (Singh; MD - Percept) --It may be a long drive from Lower Parel --but you need to be there and as an adv person I think you get the point.

I AM PROPOSING WE DO THIS NEXT TUESDAY 16TH NOV AT 11AM AT YRF AND SEEK ALL YOUR CONFIRMATIONS PLEASE BY RETURN MAIL AND HOPEFULLY WITHOUT AN SMS FOLLOW-UP. --Ronnie