Bollywood Industry in Turmoil: The Ongoing VPF Dispute Between Theatrical Chains and Producers
The Bollywood entertainment industry, renowned for its glitz, glamour, and blockbuster hits, is currently embroiled in a significant financial and operational dispute that threatens to reshape the landscape of film distribution and exhibition. Central to this controversy is the contentious issue of the Virtual Print Fee (VPF), a fee paid by producers to multiplex chains such as PVR, Inox, and Cinepolis for the digital distribution and exhibition of films. This ongoing clash has implications not only for the release schedules of upcoming movies but also for the broader ecosystem of Bollywood cinema and its theatrical business model.
The Origins of the VPF Controversy in Bollywood
The VPF model emerged as a pragmatic solution during the digital transition of Indian cinemas, allowing multiplex chains to recover their investments in digital projection equipment. However, over time, it evolved into a complex financial instrument that often sparks disagreements between producers and exhibitors. While initially seen as a necessary cost for digital cinema, the dispute over VPF payments has now become a flashpoint for larger industry tensions, especially as Bollywood shifts towards the digital-first release paradigm and balances traditional theatrical revenues with other distribution channels.
Recent Developments: The Jolly LLB 3 and Single Salma Saga
In the past month, the Bollywood industry witnessed a dramatic escalation of the VPF dispute, with serious repercussions for upcoming releases. Notably, the release of Jolly LLB 3, starring Akshay Kumar and Arshad Warsi, faced a major setback when PVR Inox suspended advance bookings for the highly anticipated film. This decision was directly linked to the film’s producer, Star Studio18, refusing to pay the VPF, citing financial constraints and ongoing negotiations.
Sources confirm that the studio paid the VPF but did so under protest, signaling a broader discontent with the terms imposed by multiplex chains. The suspension of bookings occurred twice—once just 12 hours before the film’s scheduled first show—highlighting the volatility of the current situation. Industry insiders suggest that the producers are signaling their dissatisfaction with the VPF structure and are demanding a review of the fee’s applicability and calculation.
The Impact on Upcoming Films: The Case of Single Salma
Building on the controversy, the new film Single Salma, starring Huma Qureshi, has become the latest casualty in the VPF stand-off. Produced by Star Studio18, the film’s release strategy has been disrupted due to the refusal of PVR Inox and Cinepolis to waive the VPF, despite repeated requests from the studio. An industry insider revealed to Bollywood Hungama that if a resolution isn’t reached soon, Single Salma may only release in non-national, smaller theatres—potentially limiting its box office potential.
Expected to release across approximately 200 screens, Single Salma features Huma Qureshi in a leading role, alongside Shreyas Talpade and Sunny Singh. The film’s release delay underscores the wider implications of the VPF impasse, which threatens the release schedules of multiple Bollywood projects and could influence the future of theatrical distribution in India.
Legal and Regulatory Perspectives: The Role of the Competition Commission of India
The controversy surrounding VPF payments has not gone unnoticed by regulatory authorities. On September 30, 2025, the Competition Commission of India (CCI) announced an investigation into PVR Inox over allegations of abusing its dominant market position by continuing to levy VPF on film producers, despite existing agreements to phase out such fees.
According to documents revealed during the investigation, PVR Inox had signed agreements with major production houses like Yash Raj Films and Viacom18 that included so-called “sunset clauses”—provisions promising to sunset or phase out VPF payments by December 2024. However, PVR Inox contended that these clauses had not yet been implemented and remained subject to renegotiation, arguing that YRF and Viacom18 only qualify for the sunset clauses if they cease paying VPF to other exhibitors or digital content providers.
This legal tussle highlights the broader issues of market dominance, fair pricing, and contractual transparency within Bollywood’s theatrical distribution network. The CCI’s investigation signals a potential shift towards regulatory intervention that could redefine the terms of exhibitor-producer relationships in Bollywood.
Industry Stakeholders’ Perspectives and Future Outlook
The VPF dispute has polarized industry stakeholders. Multiplex chains argue that VPF is essential for maintaining the quality and modernization of cinema infrastructure, while producers and studios claim that the fees are excessive, arbitrary, and stifle creative and commercial flexibility. The ongoing negotiations and legal proceedings suggest that a resolution may require regulatory oversight, contractual reforms, or even industry-wide standards for VPF calculations and payments.
Experts believe that this controversy could accelerate the digital transformation of Bollywood’s distribution model, pushing producers to explore alternative avenues such as direct-to-digital releases or hybrid models to bypass traditional multiplexes’ financial demands. It may also lead to a reevaluation of the long-term viability of the VPF system and prompt reforms aimed at ensuring a more equitable and transparent framework for all stakeholders.
Implications for Bollywood’s Future and Industry Dynamics
The current VPF crisis underscores a critical juncture for Bollywood, which is navigating the evolving landscape of film distribution amid technological advances and changing consumer preferences. The dispute highlights the importance of balancing the interests of multiplex chains, which invest heavily in infrastructure, with those of producers seeking fair and sustainable revenue models.
In the short term, upcoming releases like Jolly LLB 3 and Single Salma face uncertainties, which could impact box office collections and promotional strategies. Long-term, this controversy may catalyze structural reforms within Bollywood, fostering greater transparency, contractual clarity, and regulatory oversight—ultimately shaping a more resilient and equitable industry ecosystem.
Conclusion: A Turning Point for Bollywood’s Theatrical Ecosystem
The ongoing VPF dispute exemplifies the complex interplay of economics, regulation, and creative enterprise that defines Bollywood. As the industry grapples with these challenges, stakeholders are at a crossroads—either to find common ground and stabilize the ecosystem or risk further fragmentation and uncertainty.
With regulatory agencies stepping into the fray and producers asserting their rights, the coming months will be crucial in determining the future course of Bollywood’s theatrical business model. One thing remains clear: the industry’s resilience and adaptability will be tested, and the resolution of this dispute could set important precedents for the entire Indian film industry.
