PVR INOX Aims to Eliminate VPF for All Films Following Jolly LLB 3 Controversy
In a pivotal move for the Indian film exhibition industry, PVR INOX Limited has proposed to eliminate the Virtual Print Fee (VPF) charged to film producers. This proposal has been submitted to the Competition Commission of India (CCI), which is currently seeking comments, objections, and suggestions from the public and industry stakeholders until October 1, 2026. The decision could significantly impact the financial dynamics between producers and exhibitors in the country.
Background of the Proposal
The proposal is linked to Case No. 42 of 2023, which involves The Film and Television Producers’ Guild of India Limited and PVR INOX Limited. In September 2025, the CCI initiated an investigation into potential violations of Section 4 of the Competition Act. Following this, PVR INOX filed a commitment application under Section 48B of the Act.
The CCI’s non-confidential summary indicated concerns regarding PVR INOX’s ongoing imposition of the VPF. Allegations included that some Hollywood and Hindi film producers were exempt from paying the fee while others were not. Additionally, the upfront payment requirement was seen as a barrier for small and medium-sized producers seeking to release their films in cinemas. Critics argued that the charge was not directly linked to any specific service provided by PVR INOX.
New Payment Options for Producers
To address these issues, PVR INOX has proposed that the VPF, along with any upfront payments from film producers, will be discontinued within 120 days of the CCI accepting the commitments. Instead, producers will have two options for payment.
The first option is a weekly per-show Exhibition Service Charge (ESC) of Rs. 450 for standard screens and Rs. 600 for premium screens. After the film has completed 60 shows, these rates would decrease to Rs. 250 and Rs. 350, respectively. Premium formats include IMAX, 4DX, Screen X, and Luxe.
Alternatively, producers can choose a Revised Revenue Share (RRS), which would allow a reduction of no more than 7.5% from their existing share of net box-office collections. Importantly, both options would eliminate the need for any upfront payment.
PVR INOX has committed to maintaining this framework permanently, although the ESC and RRS amounts may be reviewed every three years based on objective cost data and consultations with producers.
Understanding the Virtual Print Fee
The Virtual Print Fee is a charge imposed by major multiplex chains in India on producers or distributors to cover the costs of upgrading technology for an enhanced movie experience. Typically, this fee averages around Rs. 20,000 per screen. Smaller cinema chains and non-2K theatres collect this fee through companies like UFO, Scrabble, and Qube, which provide digital cinema services.
Producers have long contended that the VPF should not be charged indefinitely, arguing that it was initially intended to be a temporary measure. Conversely, exhibitors maintain that the VPF is essential for covering the costs associated with showcasing films using the latest technology.
The issue gained widespread attention in 2019 when producer Ronnie Screwvala filed a case with the CCI against PVR, Inox, Cinepolis, and Carnival Cinemas regarding the VPF. However, the CCI ruled in favor of the multiplexes.
In 2025, the industry was shaken when PVR INOX suspended bookings for “Jolly LLB 3” twice after Viacom18 refused to pay the VPF. The booking was halted just a night before the film’s release, leading the makers to pay the fee under protest. Following this incident, the CCI directed an investigation into PVR INOX for allegedly abusing its dominant position by continuing to levy the VPF on film producers.
The CCI’s order revealed that PVR INOX had entered into agreements with Yash Raj Films (YRF) and Viacom that included “sunset clauses,” which would phase out the VPF payment by December 2024. If implemented, these agreements could have allowed YRF’s 2025 releases, “Saiyaara” and “War 2,” to be released without the VPF.
In a related development, during the release of “Single Salma” in 2025, PVR INOX agreed to release the film without the VPF, marking a rare instance for a Hindi film. Meanwhile, the Gujarati film “Laalo – Krishna Sada Sahaayate” experienced significant success, leading distributors to demand that the VPF not be charged. Although multiplexes initially agreed to this condition, reports indicate that the VPF was later paid by the film’s makers, adjusted from its substantial revenue.
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