In a significant development for the Indian film exhibition sector, PVR INOX Limited has proposed to completely discontinue the Virtual Print Fee (VPF) charged to film producers. The proposal has been submitted before the Competition Commission of India (CCI), which has now invited comments, objections and suggestions from the public and industry stakeholders until October 1, 2026.
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The matter relates to Case No. 42 of 2023 involving The Film 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.
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 film 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 released in cinemas, and that the charge was allegedly not linked to any specific service provided by PVR INOX.
To address these concerns, PVR INOX has proposed that VPF – and, importantly, any upfront payment from film producers irrespective of the language of the film – will cease within 120 days from the date the CCI accepts the commitments.
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 film completes 60 shows, the rates would fall to Rs. 250 and Rs. 350 respectively. Premium formats include IMAX, 4DX, Screen X, Luxe, etc.
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.
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.
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.
For a long time, producers have argued that the VPF shouldn’t be charged indefinitely and it was supposed to have been imposed only for a certain time. The exhibitors, on the other hand, feel that VPF is necessary as it helps bear the cost of playing the film using the latest technology and has many advantages.
In 2019, the matter became widely known and discussed after producer Ronnie Screwvala filed a case with the CCI against PVR, Inox, Cinepolis and Carnival Cinemas over VPF. However, the CCI ruled in favour of the multiplexes.
In 2025, there were shockwaves in the industry after PVR Inox suspended the bookings of Jolly LLB 3 twice after Viacom18 refused to pay VPF. The booking was, in fact, halted a night before the release. As a result, the makers chose to pay VPF but under protest.
Two weeks after this episode, the CCI stepped in and directed an investigation against PVR INOX Limited over allegations of abusing its dominant position by continuing to levy VPF on film producers. The CCI order, published at that time, revealed that PVR INOX entered into arrangements with YRF and Viacom that included “sunset clauses”, that is, agreements to phase out the payment of VPF by December 2024. It further stated that as per PVR INOX, Yash Raj Films (YRF) and Viacom are eligible for sunset clauses only if they stop paying VPF to other exhibitors/DCE providers.
Interestingly, had those agreements been implemented, YRF’s 2025 releases, Saiyaara and War 2, could have enjoyed VPF-free releases. Bollywood Hungama was among the first ones to report about it, and this piece of information was widely discussed in the industry.
Meanwhile, Viacom18 aka Star Studio18 again locked horns with PVR Inox over VPF during the release of Single Salma (2025). Since the CCI investigation was undergoing at that time, PVR Inox agreed to release the Huma Qureshi-starrer without VPF, a rare Hindi film to have this feat.
Around the same time, the Gujarati film Laalo – Krishna Sada Sahaayate (2025) started doing miraculous blockbuster business, just like Hanuman Ansh. The distributor, Rupam Entertainment, was flooded with requests to screen the film. Realizing that they had the upper hand, the distributors agreed to supply the film, provided VPF was not charged from them. Since multiplexes were desperate to screen the devotional drama, they reportedly agreed to this condition. This development also raised a lot of eyebrows.
However, as per trade sources, the VPF was later paid by the makers of Laalo – Krishna Sada Sahaayate and it was adjusted from the immense revenue generated by the film.
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