Occupancy in multiplexes, which has been lagging behind pre-Covid levels, is expected to pick up in FY25.
Over the past one to two years, multiplexes have shown growth in both revenue and profitability, thanks to a steady increase in the number of film releases and a notable rise in the average ticket price (ATP) and spend per head (SPH).
However, occupancy levels still fall short of pre-pandemic figures. India Ratings predicts that occupancy will improve in FY25, supporting further revenue and profitability growth for multiplexes.
Despite the rise of over-the-top (OTT) platforms, they are expected to coexist with multiplexes without posing an immediate threat.
Broadcasters and newsprint companies are also likely to see continued improvement in advertisement revenue, while cable companies diversify into broadband services.
Cable TV companies are combining their TV services with broadband internet to make more money and reduce financial stress from their TV business. This means they use their existing equipment better to offer customers packages with both TV and internet, which are more profitable.
Meanwhile, companies that offer both cable TV and broadband are spreading out to new areas. This helps them avoid losing customers to other companies that are also trying hard to get customers.
By doing this, these companies hope to keep making money steadily even in tough competition.
