Sooryavanshi, the Akshay Kumar-starrer that was slated for release in March, 2020, finally made it to the theatres in November, 2021. This has brought India’s filmed entertainment business back into action after a 20-month long hiatus.
According to the 2021 FICCI-EY Media & Entertainment Report, the filmed entertainment segment’s revenues declined by 80% across domestic and international theatrical releases in 2020, and earned just Rs 2,800 crore from the release of 441 films. The report estimates that the domestic and international theatrical releases could rake in Rs 9,110 crore in 2021.
The run-up to Christmas and New Year is packed with highly anticipated releases like 83 starring Ranveer Singh, Pushpa: The Rise starring Allu Arjun, Spiderman: No Way Home, and The Matrix Resurrections.
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Multiplexes are running at 100% capacity in 14 states and union territories in India. Maharashtra is the one significant market to still maintain a 50% cap on occupancy and restrictions on eating food inside cinema halls. “Post-Diwali, with the release of Sooryavanshi, Marvels’ Eternals and Rajnikanth’s Annaatthe, we are witnessing healthy occupancy in the first weekend of movie releases, like in pre-Covid times. On an average, we are seeing 70% of pre-Covid footfall, despite restrictions,” notes Gautam Dutta, CEO, PVR.
Bookmyshow COO Ashish Saksena says that transactions on the platform have crossed 60% of 2019 numbers in under a month of movies resuming in full force. “Mumbai alone has contributed almost 53% of the total sales,” he adds. Bookmyshow’s data indicates that Delhi and Kolkata have crossed 46% and 70% of sales, respectively, as compared to the same period in 2019. Saksena adds that sales in tier II and III cities have crossed 95% of 2019 levels.
However, advertising in cinema halls has not returned — despite ad rates being 60% below pre-Covid levels — even as brands are showing confidence in TV, OOH, and radio. Analysts point out that this is primarily because in-cinema advertising is heavily dependent on local advertisers and not national brands. Anand Vishal, chief sales and revenue officer, INOX Leisure, says that advertising revenue is at 55-60% of pre-Covid levels, with new-age brands buying ad inventory. Cred, Facebook and Google are among the brands that are opting for in-cinema advertising at INOX. He expects advertising revenue to return to pre-pandemic levels in six to nine weeks.
Multiplexes report that audiences have resumed their in-cinema food and beverage consumption, and are spending more than usual on popcorn and sodas. Revenue from food and beverage sales accounts for about 25-30% of a multiplex’s earnings. Vishal informs that the average ticket price at food and beverage stalls at INOX Leisure is up by 20% over pre-Covid times.
Road to recovery
As of December 5, within four weeks, Sooryavanshi collected about Rs 192 crore at the box office. As per industry estimates, on day one of its release, the movie earned Rs 4.31 crore, whereas Bunty Aur Babli 2, featuring Rani Mukerji and Saif Ali Khan, made Rs 2.6 crore on opening day.
Analysts say audiences are being very discerning about their cinema outings. Medium to small budget films are not likely to see robust collections. “Footfall for big-ticket films is still down by 15-18%. The exploratory mindset of the viewer is yet to return,” says Karan Taurani, senior VP, Elara Capital.
The pandemic has had a lasting impact on theatrical windowing. Filmmakers and exhibitors have mutually agreed on shorter theatrical windows for movies — from the earlier six-to-eight weeks to four weeks now. For instance, Sooryavanshi started streaming on Netflix on December 3, four weeks after its theatrical release on November 5.
Analysts say the four-week window, though too short, is here to stay. “This trend of a short window between the theatrical release and OTT screening is likely to continue for more than two quarters, or until audiences return to theatres,” says Chandrashekar Mantha, partner, Deloitte India.
Industry executives expect 83 to be a blockbuster hit that could earn around Rs 200 crore at the box office. Perhaps, the line-up of movies for 2022 signals a stronger revival next year: SS Rajamouli’s RRR is slated for release on January 7, followed by Alia Bhatt’s Gangubai Kathiawadi in February, and Aamir Khan’s Laal Singh Chaddha in April.
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