Bollywood producers are set to strike in a dispute over their share of box office revenue from India's multiplex cinemas.

Screens across India could go dark as soon as Saturday, because producers have vowed not to release new films.

"It is unfortunate and a reality now. We are going on strike from April 4," said producer Mukesh Bhatt, quoted by Agence France Press.

"We have been discussing with [the multiplex owners] to sort out this issue for the last two months but no solution has been found."

The producers have demanded half the revenue earned from their titles at the cinema box office — a level equivalent to what Hollywood producers make from cinema sales.

That would mark a departure from Bollywood's old business model, with productions financed by family dynasties and sometimes, underworld money.

Producers are trying to adopt a business model similar to that used in Hollywood, to boost flagging revenues and operate more transparently.

Currently, multiplex cinema owners take two-thirds of the box office and say they cannot afford more.

Theatre chains say they are unwilling to pay more because Bollywood, India's vibrant film industry which generates about $2 billion in revenue annually, has delivered a string of flops in recent months.

"When the producers started giving bad films to us, the audiences ran away. So, we are saying to them in simple words: give us good films and we are ready to pay you good money," said Shravan Shroff, the managing director of the Fame Cinema chain.

The dispute has threatened to delay the release of dozens of titles, including Bhatt's most recent film Jashn, Yash Raj's New York and Anil Kapoor's Short Kut.

The cinemas have vowed to show old movies.

About 3.7 billion cinema tickets are sold in India every year.