In its latest announcement, PVR Inox has announced that it will shut down 50 cinemas due to accelerated depreciation on cinemas lined up for shutdown. The 50 cinemas are in malls that have reached the end of their life cycle with little hope of revival.
The chain added 168 screens in FY 2023 and 79 screens in Q4 FY23. However, the cinema-goers need not worry. PVR Inox will make up by opening 150-157 screens in FY24. While nine have already opened, 152 are in various stages of design. Also, the chain has a robust development plan for the next five years.
The chain is confident that people are returning to cinemas, and the merger only added to the number of screens. They will be looking to add 180 more screens in the next fiscal year as well. Also, it is working on the economics of revenue from ticket prices, food & beverage, advertising, and operating costs.
The year started with a bang with Shah Rukh Khan’s Pathaan. James Cameron’s Avatar: The Way Of Water also did very well. And the latest sensation, The Kerala Files, has turned out to be a blessing for the multiplex owners. But all other biggies have fallen flat on their face.
This has sparked a discussion on social media. With Netflix and YouTube, there is a lot of competition for audience attention, and the chains need more blockbusters to push profits. People are saying that the biggest hindrance could be people getting used to their own versions of home theatres.
Even the younger couples who came to the theaters to enjoy some intimacy have moved on to OYO. The audience is also frustrated that they have to pay the same amount to watch an Rs. 250 crore spectacle like PATHAAN or an Rs. 25 crore film like Selfiee.
The ecosystem of high-cost cinema rentals/sharing has led to higher ticket prices. On top of that below-par content, the fast availability of content on OTT keeps the audiences away from theaters. Another factor of “STARS” on OTT losing their sheen at the box office is very critical too. An entire overhaul is needed from all film sectors.
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