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PVR INOX Proposes to Eliminate Virtual Print Fee for All Films, CCI Opens Comment Period
PVR INOX Limited has filed a proposal with the Competition Commission of India (CCI) to scrap the Virtual Print Fee (VPF) it has long charged film producers and distributors. The company says the fee—originally meant to cover digital projection equipment—will be withdrawn within 120 days of CCI approval.
The move follows a 2025 CCI investigation into PVR INOX’s VPF practices. In September 2025 the CCI ordered an inquiry under Section 4 of the Competition Act after concerns were raised that the fee was applied inconsistently and that it imposed an upfront burden on smaller producers. PVR INOX then filed a commitment application under Section 48B, offering to replace the VPF with two alternative payment models.
Under the first model, producers would pay a weekly Exhibition Service Charge (ESC) of ₹450 per show on standard screens and ₹600 on premium screens. After a film completes 60 shows, the rates would drop to ₹250 and ₹350 respectively. Premium formats such as IMAX, 4DX, Screen X and Luxe would be included in the higher rate.
The second model is a Revised Revenue Share (RRS). Producers would retain their existing share of net box‑office collections, but the share could be reduced by no more than 7.5 % of the current rate. Both options eliminate any upfront payment.
PVR INOX has stated that the ESC and RRS rates would be reviewed every three years, with adjustments based on objective cost data and consultations with producers. The company says the framework would remain in place indefinitely if accepted.
The proposal comes a year after the high‑profile Jolly LLB 3 controversy, when PVR INOX suspended bookings twice after Viacom18 refused to pay VPF. The film’s release was delayed by a night, prompting the makers to pay the fee under protest. The incident led to the CCI investigation and the discovery of “sunset clauses” in agreements with Yash Raj Films (YRF) and Viacom, which were intended to phase out VPF by December 2024.
If the sunset clauses had been implemented, YRF’s 2025 releases, Saiyaara and War 2, could have been released without VPF. Similar arrangements were reportedly reached for the Gujarati devotional film Laalo – Krishna Sada Sahaayate, although the fee was later paid from the film’s revenue.
The CCI has invited comments, objections and suggestions from the public and industry stakeholders until October 1, 2026. The commission’s decision will determine whether the VPF can be permanently eliminated or whether the proposed ESC and RRS models will be adopted.
The proposal is significant because VPF has been a long‑standing point of contention between multiplex operators and film producers. While exhibitors argue that the fee helps cover the cost of digital projection, producers contend that the fee should not be charged indefinitely and that it creates a barrier for smaller productions.
PVR INOX’s announcement follows a broader trend of scrutiny over the fee. In 2019 a case filed by producer Ronnie Screwvala against PVR, INOX, Cinepolis and Carnival Cinemas was dismissed by the CCI, which found the fee to be lawful. However, the 2025 investigation has renewed debate over the fee’s fairness and its impact on competition.
The outcome of the CCI review will have implications for the economics of theatrical distribution in India. If the VPF is scrapped, producers may benefit from lower upfront costs, while exhibitors will need to adjust their revenue models. The ESC and RRS options, if adopted, would shift the cost structure from a flat upfront fee to a per‑show or revenue‑share basis.
PVR INOX has not yet announced a timeline for the implementation of the new model beyond the 120‑day period after CCI acceptance. The company has said it will keep the framework in place permanently if the commission approves the commitments.
Industry observers will watch the CCI’s decision closely, as it could set a precedent for other multiplex operators and influence the future of digital projection subsidies in India.
The commission’s comment period closes on October 1, 2026. Stakeholders are encouraged to submit their views to the CCI’s public portal.
The move follows a 2025 CCI investigation into PVR INOX’s VPF practices. In September 2025 the CCI ordered an inquiry under Section 4 of the Competition Act after concerns were raised that the fee was applied inconsistently and that it imposed an upfront burden on smaller producers. PVR INOX then filed a commitment application under Section 48B, offering to replace the VPF with two alternative payment models.
Under the first model, producers would pay a weekly Exhibition Service Charge (ESC) of ₹450 per show on standard screens and ₹600 on premium screens. After a film completes 60 shows, the rates would drop to ₹250 and ₹350 respectively. Premium formats such as IMAX, 4DX, Screen X and Luxe would be included in the higher rate.
The second model is a Revised Revenue Share (RRS). Producers would retain their existing share of net box‑office collections, but the share could be reduced by no more than 7.5 % of the current rate. Both options eliminate any upfront payment.
PVR INOX has stated that the ESC and RRS rates would be reviewed every three years, with adjustments based on objective cost data and consultations with producers. The company says the framework would remain in place indefinitely if accepted.
The proposal comes a year after the high‑profile Jolly LLB 3 controversy, when PVR INOX suspended bookings twice after Viacom18 refused to pay VPF. The film’s release was delayed by a night, prompting the makers to pay the fee under protest. The incident led to the CCI investigation and the discovery of “sunset clauses” in agreements with Yash Raj Films (YRF) and Viacom, which were intended to phase out VPF by December 2024.
If the sunset clauses had been implemented, YRF’s 2025 releases, Saiyaara and War 2, could have been released without VPF. Similar arrangements were reportedly reached for the Gujarati devotional film Laalo – Krishna Sada Sahaayate, although the fee was later paid from the film’s revenue.
The CCI has invited comments, objections and suggestions from the public and industry stakeholders until October 1, 2026. The commission’s decision will determine whether the VPF can be permanently eliminated or whether the proposed ESC and RRS models will be adopted.
The proposal is significant because VPF has been a long‑standing point of contention between multiplex operators and film producers. While exhibitors argue that the fee helps cover the cost of digital projection, producers contend that the fee should not be charged indefinitely and that it creates a barrier for smaller productions.
PVR INOX’s announcement follows a broader trend of scrutiny over the fee. In 2019 a case filed by producer Ronnie Screwvala against PVR, INOX, Cinepolis and Carnival Cinemas was dismissed by the CCI, which found the fee to be lawful. However, the 2025 investigation has renewed debate over the fee’s fairness and its impact on competition.
The outcome of the CCI review will have implications for the economics of theatrical distribution in India. If the VPF is scrapped, producers may benefit from lower upfront costs, while exhibitors will need to adjust their revenue models. The ESC and RRS options, if adopted, would shift the cost structure from a flat upfront fee to a per‑show or revenue‑share basis.
PVR INOX has not yet announced a timeline for the implementation of the new model beyond the 120‑day period after CCI acceptance. The company has said it will keep the framework in place permanently if the commission approves the commitments.
Industry observers will watch the CCI’s decision closely, as it could set a precedent for other multiplex operators and influence the future of digital projection subsidies in India.
The commission’s comment period closes on October 1, 2026. Stakeholders are encouraged to submit their views to the CCI’s public portal.
