Kannada film producers have been suffering huge losses for long time. In order to avoid this problem, the KFPA had urged the theatre owners to release the movies based on percentage system last week. When the theatre owners expressed their opposition and insisted to follow the present rental system, the general body meeting of KFPA on Friday resolved to stop Kannada film production activities and new releases from January 1, 2010.
Now, with intervention of KFCC, the problem has been solved and percentage system will be applied to release Kannada and non-Kannada movies in the state. Both the groups have bid good bye to the rental system of movie release.
President Dr. Jayamala said that the percentage system was being followed some two decades ago. Now, the exhibitors will constitute a committee in a week's time and decide on the percentage that needs to be followed. However, the percentage will be shared on the basis of fixed rates, which will be finalised after a discussion with producers.