OTT Shocker: Largest Multiplex Chain Shutting Down

PVR INOX is adjusting its strategy in response to the growing popularity of OTT platforms. The company plans to shut down 70 underperforming cinema screens in FY’25, having already shut down 85 this year. These screens were either unprofitable or located in outdated malls.

To manage its debt, PVR INOX aims to use cash flow from operations and is considering selling off non-essential real estate.

The company reported a significant loss of Rs 136.6 crore in Q1 FY25, up from Rs 44.1 crore the previous year, partly due to delays in film releases caused by events like the Lok Sabha elections and the IPL.

Despite these challenges, PVR INOX is hopeful about the second half of FY25, expecting improvements with films like Singham Again, Bhool Bhulaiya 3, Devara, and Pushpa 2.

The rise of OTT platforms, which are growing rapidly in India, presents a challenge for theaters. However, theater attendance in India has increased, with a 29% rise in 2023.

To attract more viewers, PVR INOX is introducing new incentives like cinema lovers’ days, discounted tickets, and alternative content such as film festivals and sports events.

PVR INOX is also focusing on expanding its presence in the South Indian film market, which has high demand and fewer multiplexes.

Zomato has entered the movie ticketing space by acquiring Paytm’s movie and ticketing platform, aiming to challenge BookMyShow’s dominance and offer more competitive pricing.

As the media landscape evolves, consumer preferences will continue to drive changes in both OTT and theater experiences.