Bollywood’s Film Industry Faces New Challenges: VPF Disputes and the Unexpected Success of Regional Cinema
The Bollywood industry, renowned for its glitz, glamour, and blockbuster hits, is currently navigating a complex web of financial disputes and evolving release strategies. Recent developments highlight how the ongoing Virtual Print Fee (VPF) controversy continues to impact Bollywood films, alongside a surprising success story from regional cinema that could reshape industry norms. This article delves into the latest updates, exploring the intricacies of Bollywood’s VPF conflicts, the strategic moves by multiplex chains, and the rising tide of regional films breaking traditional barriers.
Understanding the Virtual Print Fee (VPF) Controversy in Bollywood
At the heart of Bollywood’s current industry turbulence lies the contentious practice of the Virtual Print Fee (VPF). This fee is essentially a charge levied by film distributors on multiplex chains for the digital print of a movie. While VPF was introduced as a way to recover costs associated with digitization, it has become a hot-button issue, with many producers and exhibitors questioning its fairness and long-term implications.
On Thursday, October 30, Bollywood Hungama exclusively reported that tensions flared once again between Star Studio18 and major multiplex chains over the payment of VPF, this time concerning their latest release, Single Salma, starring Huma Qureshi. This incident marks a continuation of the industry’s ongoing struggle, following the earlier dispute over Jolly LLB 3.
Recent Developments: The Dispute Over Single Salma
Sources close to the matter revealed that negotiations stretched into late Thursday night, reflecting the high stakes involved. Star Studio18 reminded multiplex chains of their existing agreement that stipulated VPF payments would cease after 2024. Although the producer had paid VPF “under protest” for Jolly LLB 3, it was clear they would not make the same concession for Single Salma.
For context, during the Jolly LLB 3 release, PVR Inox, one of India’s leading multiplex chains, responded by suspending advance bookings, signaling their discontent with the VPF demands. However, in the case of Single Salma, PVR Inox chose not to object, largely due to ongoing investigations by the Competition Commission of India (CCI) into multiplex practices. As a result, Single Salma was released in PVR Inox properties without the VPF, a rare occurrence for a Hindi film, highlighting the shifting dynamics of Bollywood distribution.
CCI’s Role and Industry Implications
On September 30, 2025, the CCI directed an investigation into PVR INOX Limited, accusing the company of abusing its dominant market position by continuing to impose VPF on film producers. The CCI’s directive calls for a thorough probe into whether these practices distort fair competition and burden film producers unfairly. The agency has tasked its Director General with submitting a detailed report within 90 days, which could potentially lead to regulatory reforms impacting the entire industry.
This investigation is a significant development for Bollywood and the broader Indian film industry, as it challenges the entrenched model of VPF collection, which many industry insiders argue is a barrier to fair profit-sharing and independent film production.
Standoff with Cinepolis and the Power Play of Hollywood Blockbusters
The dispute with Cinepolis, another major multiplex chain, further underscores the industry’s tense climate. Unlike PVR Inox, Cinepolis refused to release Single Salma without VPF, prompting Star Studio18 to deploy a strategic counter-move — leveraging their upcoming Hollywood film, Avatar: Fire And Ash.
The studio warned Cinepolis that if they didn’t agree to release Single Salma, they would only screen the blockbuster in Cinepolis theatres if the chain agreed to a revenue-sharing split of 65%, significantly higher than the industry-standard 52.5% for the first week. This move was a clear message: Star Studio18 was willing to prioritize Hollywood releases over Bollywood films, asserting their influence and negotiating power. Despite the hefty demands, Cinepolis chose to hold firm, likely hoping to find a resolution by the time Avatar: Fire And Ash hits theatres on December 19.
This high-stakes game illustrates the shifting power dynamics within Bollywood’s distribution landscape, where big-budget Hollywood films are increasingly used as bargaining chips to secure favourable terms for local productions.
Regional Cinema’s Unexpected Rise: The Case of Laalo
While Bollywood faces its share of challenges, regional cinema continues to surprise industry observers with its resilience and innovative strategies. The Gujarati film Laalo – Krishna Sada Sahaayate exemplifies this phenomenon, securing a VPF-free release despite a modest budget of just Rs. 50 lakhs.
Released on October 10, during a dull pre-Diwali period, Laalo initially struggled to attract an audience, hampered by low awareness and the presence of new faces. However, in an almost miraculous turn of events, positive word-of-mouth spread rapidly through social media, leading to a surge in viewers. Videos of audiences dancing and celebrating during screenings went viral, transforming the film’s fortunes almost overnight.
Remarkable Box Office Performance and Industry Impact
The unexpected success of Laalo has set new benchmarks for regional cinema, particularly in Gujarat. The film became the highest-performing release in the region, with cinemas like Rajhans Cinema at Precia, Surat, planning to run a record 20 shows daily starting November 3. Other theatres across Gujarat are reportedly playing more than ten shows per day, reflecting an unprecedented demand for the film.
In Mumbai, the film also performed well, demonstrating that regional stories can resonate beyond their traditional markets. Made on a shoestring budget, Laalo is projected to earn over Rs. 5 crore, far exceeding expectations and proving that regional cinema can be both commercially viable and culturally significant.
How a Modest Gujarati Film Achieved VPF-Free Release
Behind this success lies a strategic negotiation by the distributor, Rupam Entertainment. Initially, theaters rejected Laalo due to low buzz. However, as demand surged, multiplex chains scrambled to acquire the film, which had become a hot commodity in Gujarat. The distributor capitalized on this desperation, insisting on two key conditions: first, that the film be given a higher revenue share during its initial week, and second, that VPF not be levied.
While multiplexes were willing to accept the first condition, they hesitated on the VPF issue. Ultimately, the distributor’s firm stance on waiving VPF was accepted, as they recognized the film’s low-budget nature and the risk of losing the opportunity altogether. This negotiation underscores a broader shift where regional films, especially those made with modest budgets, are gaining leverage to bypass traditional industry fees and barriers.
Broader Industry Implications and Future Outlook
The recent incidents involving Bollywood films and regional successes like Laalo signal a potential turning point in Indian cinema. Producers and exhibitors are increasingly questioning the fairness of the VPF model, which many argue stifles independent filmmaking and consolidates the power of large multiplex chains.
The ongoing CCI investigation could catalyze regulatory changes, encouraging a more equitable distribution landscape. If the authorities decide to curb or regulate VPF practices, Bollywood and regional cinema alike might benefit from a more level playing field, fostering diverse storytelling and supporting smaller producers.
Moreover, the success of regional films like Laalo demonstrates that audiences are eager for authentic, local stories, even during low-profile release windows. This trend suggests that Bollywood and regional filmmakers should explore innovative release strategies, including VPF-free models and grassroots marketing, to maximize reach and profitability.
Conclusion: A New Dawn for Bollywood and Regional Cinema
The current landscape showcases a dynamic industry at a crossroads. While Bollywood continues to grapple with financial disputes and industry regulations, regional cinema is proving its resilience and potential for growth. As the debate over VPF persists, industry stakeholders must adapt to emerging realities—embracing transparency, fair practices, and diverse content that resonates with audiences nationwide.
Ultimately, these developments could lead to a more inclusive, competitive, and innovative Indian film industry, where both Bollywood and regional cinema thrive side by side, offering viewers a richer tapestry of stories to enjoy.
Stay tuned for further updates on the evolving Bollywood industry landscape and the future of Indian cinema as regulatory and market forces continue to shape its trajectory.
