Film Corperation takes over from private distributors

• Minister says monopoly hurt local industry 
• Film Cooperation to keep only 5% commission 
• Industry cautiously optimistic, stresses need to ensure efficient distribution 

By Chathuri Dissanayake

The Ministry of Cultural Affairs yesterday took over the distribution of films to the National Film Corporation, reversing agreements with private sector companies that previously handled distribution. 

The decision was taken to protect the local film industry which was adversely affected by the manner in which the private sector handled distribution, Higher Education and Cultural Affairs Minister Wijeyadasa Rajapakshe told the Daily FT. 

“There was a monopoly in distribution and the local film industry was affected by the situation. A lot of the producers, directors and other stakeholders in the industry lobbied for the change,” Rajapakshe said.

The Film Cooperation will carry out all distribution keeping only a 5% commission with the rest of the income being distributed between the producer and the theatre owners, the Minister said. 

Four private entities - Lanka Film Distributors Ltd. (LFD), E.A.P. Films and Theatres Ltd. (EAP), Movie Producers and Importers Ltd. (MPI), Cinema Entertainment Ltd. (CEL) and Rithma Circuit (NFC) handled the film distribution for the entire industry. However, the conduct of the companies has come in for severe criticism from industry stakeholders due to their preference to give more airtime to foreign films over local productions. 

“The situation has been very dire; over 70 odd cinema halls have closed over the years. The Film Cooperation took over distribution as it was empowered through the Act,” Rajapakshe said. 

According to the Minster although the agreements were signed with the companies, the Act was not amended to legalise distribution by private entities. A clause to amend the Act has been in entered in the agreements with the companies when giving them the rights for distribution. However, the Act has never been amended to legalise the procedure, the Minister said. 

“Now the distribution will happen as per the regulations in the Act,” Rajapakshe said. 

Veteran Film Producer Renuka Balasooriya was cautiously optimistic of the move, explaining that the industry would benefit if the corporation was able to streamline distribution. 

“The private distributors often ignored local films and preferred foreign films. So most of the small-time producers were affected. Although this has no personal bearing for me, it will be a good move and will help the industry in the long run,” she explained. 

The lack of monitoring and proper regulation to govern private sector distribution has caused issues in the industry, she explained. 

“After the industry went digital there was no monitoring. Earlier when it was 35mm films the importer needed letters from the Treasury and the Film Cooperation to be produced at Customs. There is no longer such a requirement which resulted in no monitoring or regulation of the industry,” she explained. 

The situation had resulted in local film producers being side-lined, with their films not being picked by distributors. 

However, she stressed that the Film Corporation should ensure that distribution was handled with the same efficiency as the private sector. 

“If there is a need then they should recruit more staff for the work and ensure that efficiency is maintained,” she said.