Multiplex chains in the Hindi markets are refusing to show films from southern India that are released on OTT platforms in less than 8 weeks.
This decision has significant consequences for fans and premium cinema formats like IMAX, which have been impacted by this trend.
Recent Tamil films like Leo and GOAT did not get screened in IMAX theaters in the Hindi belt. Of the more than 30 IMAX screens in India, only eight are located in the southern regions.
Industry experts highlighted that IMAX can’t directly intervene in these issues because it operates through theater chains that have licensing agreements, but it’s clear they are missing out on potential business.
It is observed that not screening these films means losses on multiple fronts, including lower foot traffic in malls, reduced food and beverage sales, and diminished advertising opportunities.
He estimates that GOAT and Leo could have collectively earned an additional ₹30-50 crore at the box office if they had been shown in northern theaters.
To make up for these losses, IMAX screens these films in overseas markets, but the situation in India remains challenging.
Other premium formats like EPIC are also trying to enter the market, but currently, multiplexes have the upper hand in the north, deciding what films to show.
Despite the interest in expanding premium cinema formats like IMAX and 4DX, trade analysts note that there aren’t enough suitable Indian films to keep these screens busy.
Most films shown in these formats are Hollywood titles, forcing theaters to focus on them for longer periods.
Although Hindi and regional films are starting to be shot or converted for premium formats, they only account for about 15-20% of revenue for major multiplex chains.
Many industry experts summarized the situation, saying that when films move to OTT too soon, everyone suffers.
The exhibitors lose the opportunity to screen them, producers miss out on broader audiences, format owners like IMAX lose business, and ultimately, the audience loses access to these films.
