Bollywood film producers went on strike Saturday, refusing to release new movies because of a row with multiplex cinema owners over box office takings.
The producers are standing firm until big cinema chains across the country agree to equal revenue sharing in line with practices in other countries.
But multiplex owners insist they will only agree to an even split if a film does well and have urged producers to improve the quality of their films. At present, the balance is tipped in their favour as much as 60:40.
"The strike is on for new releases. "However we are discussing with the multiplex operators to try to reach some agreement."
Industry figures said the strike could not have come at a worse time for India's 2.1-billion-dollar-a-year Hindi-language film industry, which is feeling the effects of the global economic slowdown and dwindling audiences.
Bollywood has had a dire 2009 first quarter and is in desperate need of a hit movie.
A number of new releases have already been put back, including Mukesh Bhatt's "Jashn," Yash Raj's "New York" and Anil Kapoor's "Short Kut." Other studios have shelved promotional work and publicity because of the uncertainty.
Cinemas are likely to see more empty seats when the Indian Premier League Twenty20 cricket tournament starts next month in South Africa.
IPL matches will be shown on television in the afternoon and early evening, meaning cricket-mad Indians will likely stay at home to watch rather than go to the cinema.
"So strong has been the outlook of producers towards the entire issue, rightly so, that there are no promos of any upcoming movie which is currently on air,"
"This means that the makers are more than 100 percent convinced that the standoff is not expected to end before the month of May begins."