PVR INOX Proposes Eliminating Virtual Print Fee in Major Deal Submitted to CCI
In a major shift for the Indian film exhibition sector, PVR INOX Limited has formally proposed to completely scrap the Virtual Print Fee (VPF) charged to film producers. The proposal was submitted to the Competition Commission of India (CCI) following an investigation into allegations of unfair market dominance and selective fee structures. The CCI has now invited public and industry feedback on the proposed commitment application until October 1, 2026.
The long-standing conflict over VPF—a digital transition fee averaging ₹20,000 per screen—reached a breaking point after high-profile distribution disputes in recent years. Industry controversies involving major releases like Jolly LLB 3, Saiyaara, and War 2 brought intense regulatory scrutiny to PVR INOX’s practices. Concerns were raised over mandatory upfront payments for smaller producers and hidden “sunset clauses” granted selectively to major studios, prompting the CCI to intervene.
Under the new proposal, PVR INOX will permanently phase out all upfront VPF payments across all film languages within 120 days of CCI approval. Instead, producers will be offered two alternate revenue models. The first option is a weekly Exhibition Service Charge (ESC) per show, set at ₹450 for standard screens and ₹600 for premium formats like IMAX and 4DX, which drops after 60 shows. Alternatively, producers can opt for a Revised Revenue Share (RRS), reducing their net box-office collection share by no more than 7.5%.
Neither option requires initial cash outlays from producers, eliminating financial entry barriers for mid-budget and independent regional films. The service rates will remain locked for review every three years through collaborative cost assessments between exhibitors and filmmakers.
If accepted by the CCI, this commitment will mark the end of the multi-decade VPF debate in India. The transition promises a fairer theatrical playing field, reshaping distribution economics for producers, distributors, and multiplex chains nationwide. Stay tuned to know more about it and others only with us and if you have anything to share do comment below and share your thoughts.
