🍿🥤Is the Indian Cinema/Multiplex industry showing signs of recovery?🎭👀

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This newsletter will cover the following sections:-

• Top OTT Shows & Movies (don’t miss the new entrants)

• Are we witnessing recovery in the Cinema/Multiplex business?

• Weekly Box Office figures.

• Weekly Puzzle

• News Buzz

Top watched OTT Shows this week

Top Releases this week

PVR INOX celebrated a record weekend footfall in their cinemas. Could this be a sign of recovery for the Cinema /Multiplex industry?

PVR is one of the largest multiplex Cinema hall chains in India. They recently acquired INOX and now own 1708 screens in 115 cities in India. Its started it’s operation in the year 1997 and the big news is that in the past 26 years of its existence, PVR INOX clocked its biggest ever footfall of 3.3 million visitors in its cinema halls, generating a revenue of over ₹100 Crore of $12.5 Million during the weekend of 11th-13th August 2023. Such was the weekend sale that the company's shares jumped by almost 4% on the stock exchanges.

Indian Cinema Exhibition business- Data Points

Let's look at the cinema scene in India. According to Ormax, there are 122 million people in India who go to the movies now, compared to 145.7 million before the pandemic. On the other hand, India has about 8700 screens all over the country, which can fit around 3.15 million viewers. This is a small number compared to the number of people who watch movies.

Surprisingly, 48% of these cinemas are mostly found in just five states: Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, and Telangana. These states have around 58% of the total seats. The rest of India has only about 3000 screens. This means that in India, there are only 7 cinemas for every one million people who watch movies. In contrast, the USA has 111 cinemas for every one million people.

Statewise Cinema hall Distribution in India (year 2022)

Although the potential for the cinema business is huge in India, existing multiplexes and cinemas are still facing losses. This is mostly because the movies released in the past few years have not been of good quality or quantity, except for some popular southern movies. These southern movies have provided relief to the cinema owners due to their appeal across India, strong storytelling, and impressive performances.

Factors Contributing to the recent sales

1. More number of Hit Movies

PVR Inox has shown a 30% uptick in its stock value since the beginning of the year. Let’s look at the number of hits this year.

PVR Inox's stock value has surged by 30% since the start of the year. Now, let's consider the successful movie releases in this period. We've witnessed over 12 blockbuster movies, significantly contributing to the resurgence of cinema-goers.

2.More movie releases & Better Content

The data speaks for itself. When you compare the quantity of movies released before COVID to those released after the pandemic, it's clear that the cinema exhibition industry was directly impacted by the decrease in releases. But the situation is evolving. This year, we're set to have a higher number of theatrical releases compared to the previous year. Moreover, the content quality has improved. In 2023, we've already seen 13 blockbuster releases, and we still have four months left before the year concludes.

3. Other Factors

The resurgence of interest in theatres is not solely attributed to the triumph of Bollywood films. Regional and Hollywood movies have also significantly contributed to the renewed enthusiasm of movie enthusiasts for theatre experiences. The triumph of movies like Oppenheimer, Barbie, Jailer, and Lost in the Stars signifies a noticeable shift in content consumption trends. This quarter, the growth in average ticket prices (ATP) could be substantial, given that Oppenheimer experienced substantial demand in IMAX format, and advertising revenue is anticipated to perform well due to robust box office collections.

Viewpoint

Cinemas across the globe are undergoing a resurgence, thanks to a lineup of hit movies that have drawn audiences back to the big screen. Nevertheless, relying solely on popular films isn't enough for the movie theatre industry to thrive. Theatre companies must also focus on cost efficiency, enhancing their average ticket prices compared to the average spending per hour. This adjustment ensures that profitability remains achievable even with fewer patrons in the theatres.

The ongoing discussion centres on whether Over-The-Top (OTT) platforms will render traditional theatrical releases unfeasible, leading to a decline in cinema attendance over time. From my perspective, theatres and OTT platforms will coexist harmoniously. The allure of watching a movie on a large screen cannot be equated with viewing the same content on a smaller device. Furthermore, going to the movies offers patrons an opportunity to enjoy an outing while also watching a film. In essence, both mediums can complement each other, contributing to the overall entertainment experience.

Box Office Collection Report

Quiz Time

Q- In which year the first Multiplex in India opened and which part of the country did it open? 🍿🎬

Hint: It was opened by PVR

Last Week’s QnA

Q- Which superhero movie, released around Valentine's Day in 2016, cleverly employed marketing strategies to present itself as a romantic film, despite not actually falling into that genre?

A- Deadpool

News Buzz

• Popular US show hosts Stephen Colbert, Jimmy Fallon and Jimmy Kimmel come together for strike-focused podcast. Read here 

• Analyst predicts that pressure will eventually build at Disney to break up if stock doesn’t improve. Read here 

Thanks for reading and see you next week!

Vipul