Entrepreneur Stelios Haji-Ioannou is behind the plan

A company aiming to slash the cost of cinema admissions says it could be heading closer towards a showdown with major film distributors.

Easycinema - run by Easyjet airline entrepreneur Stelios Haji-Ioannou - plans to offer film tickets for as little as 20p.

It has already struck a deal to show "second-run" movies - popular titles available for screening a few weeks down the line from their release date.

But it has been unable to agree on a formula to show the big blockbusters as soon as they hit the screens.

It wants to pay distributors a flat rate in return for being able to show first-run films for an agreed period.

Easycinema hopes to revolutionise the cinema industry in the same way its airline arm has introduced cheap international flights.

Mr Haji-Ioannou wants to revolutionise film-going

But it says it has met resistance from the main film distributors - Columbia Tristar, Warners, Universal Paramount, Fox and Disney - whom it accuses of operating a cartel.

The company said it was aiming to reach an agreement before it opens its first cinema in Milton Keynes on 23 May.

It said it would consider going to the High Court to challenge the distributors' stranglehold on showing blockbusters.

Asked whether a legal challenge was now likely, Easycinema spokesman James Rothnie said: "It's heading that way."

He said: "We are continuing to talk to distributors and they are not giving us offers or straightforward replies.

The Milton Keynes cinema will employ 12 staff

"When you have got a cosy situation you don't want it to change."

The company has leased a loss-making 10-screen cinema in Milton Keynes from the UCI chain as its test venue for the project.

Its opening second-run films include Bulletproof Monk, Evelyn, The Heart of Me and L'homme du Train.

Easycinema plans to charge between 20p and �5 per film, with an average price of about �1.50, depending on what day and time of the week the film is shown.

It will encourage customers to book online days and weeks in advance to keep costs down.

None of the distributors contacted by BBC News Online was available for comment.