BMS challenged the termination of the agreement in the Bombay High Court, which asked both parties on September 18 to start arbitration on the matter and reach a decision in four weeks.
The issue started earlier this month, when Inox sought more money from BMS for the rights to sell its tickets, people familiar with the matter told ET. BMS refused, citing the clauses within the contract signed in 2016 that’s valid until 2023. The disagreement led Inox to scrap the deal, citing alleged breach of terms by BMS.
“BookMyShow had to pay a larger sum to PVR Cinemas when it renewed the deal with the multiplex chain last month to sell its tickets on the platform. Inox demanded similar terms and sought an extremely high price from BMS to continue the partnership, which they refused,” said one person.
“We don’t have a contractual relationship with BMS at present,” an Inox spokesperson said in response to ET’s email query. The company did not offer more details. BMS declined to comment on the matter.
BMS agreed to pay Rs 235 crore to PVR, India’s largest multiplex chain, while Paytm agreed to pay over Rs 175 crore to sell tickets, ET reported on August 3. Those three-year accords were reached after Paytm failed to clinch an exclusive contract with PVR.
Industry experts said that by going off the BMS platform, Inox’s ticket sales may suffer. BMS alone generated over 32% of Inox’s box-office revenue. Online channels including BMS, Paytm and its own website and mobile app contribute about 44% of Inox’s revenue, according to Inox officials who spoke under the condition of anonymity.
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