Mall developers are reducing multiplex spaces in new projects. This is due to declining footfalls and revenues in cinemas.
Multiplexes now contribute only 6-7% of mall traffic, compared to 10% earlier. Rising OTT platforms and poor film content are key reasons for this shift.
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Developers are now focusing more on food courts, gaming zones, and other entertainment options.
Multiplexes pay a fixed minimum amount to mall operators and share revenue. In 2023, they met the minimum guarantee for 8-9 months. This year, they could do so only for 4-5 months. This shows their struggle to stay profitable.
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Ticket prices are high, and audiences are turning to streaming platforms. Weak scripts and flops at the box office are further reducing interest in theatres.
Box office collections dropped from ₹13,161 crore in 2023 to ₹7,811.8 crore so far in 2024. Occupancy rates have also fallen from over 30% pre-pandemic to 25.8%.
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Southern cinemas perform better due to regional language films. However, even here, multiplexes are losing space to other revenue-generating options.
Developers like DLF and Prestige Group are cutting cinema spaces and investing in food, gaming, and retail businesses. Unity Group has already reduced cinema areas in their new malls.
Watching films in theatres is no longer a regular habit. People now prefer streaming or other experiences.
The declining interest in theatres should alarm Bollywood, Tollywood, and other film industries. This trend shows a clear need for innovative distribution and operating models to attract audiences back to cinemas.
However, expecting such innovation might be overly optimistic. Many filmmakers are already struggling to bring fresh ideas into their storytelling and content.
Without bold steps to adapt to changing audience preferences, the situation may worsen, further challenging the future of theatrical releases.
