The Multiplex Association of India, an apex body of multiplex operators in the country, has red-flagged Netflix’s proposed acquisition of Warner Bros. Discovery, saying it could diminish theatrical content availability and threaten India’s cinema ecosystem.
In a statement on Saturday the body argued that consolidating a major studio under a streaming platform presents competitive and economic risks to India’s theatrical market.
The comments, which come a day after Netflix said it would buy Warner Bros. Discovery in a $72-billon cash and stock deal, has put the spotlight on the world’s largest producer of movies, namely, India and the implications of global consolidation on the local market.
India produces over 2,000 films annually across languages and is also home to the world’s second-oldest film industry, namely, Bollywood. In recent years, Hollywood movies have found a thriving market in India, with big releases awaited keenly, dubbed in multiple languages and doing brisk business here.
Hollywood’s growing box office share
According to film industry experts, Hollywood films contribute about 10-15% of India’s total box office collections of about Rs 10,000 crore. A decade ago, this number was about half the current share, experts said, as Bollywood ruled then. But, with audience preferences changing post Covid-19 amid a boom in OTT content, Bollywood movie makers and producers have struggled, forcing exhibitors to turn to regional-language and Hollywood content for footfalls and business.
“The Indian theatrical market thrives on choice, scale, and cultural diversity,” said Kamal Gianchandani, president of MAI. “Warner Bros. has historically been a key partner to Indian cinemas, contributing consistently to our release calendar with successful global and local titles,” he said. “Cinemas in India are more than entertainment venues. They are cultural hubs and significant economic contributors, supporting millions of livelihoods,” he said.
Pointing to Netflix’s stance of having a limited approach to theatrical releases, Gianchandani said that the risk to cinema owners would be two-fold. “One is a meaningful reduction in high-quality content for cinemas, and the potential for shortened or non-existent theatrical windows,” he said.
He added that this would impact revenues, limit consumer choice, and weaken the broader ecosystem of film production, distribution, and exhibition in India. “A consolidation of this magnitude warrants careful scrutiny,” he added.
Industry experts predict deeper Netflix catalogue
Karan Taurani, executive vice-president at brokerage Elara Capital said the Netflix acquisition of Warner Bros. Discovery would deepen the streaming major’s catalogue across movies, originals and global TV content.
“This will increase Netflix’s offering in a large entertainment market such as India. It will improve its positioning and market share within the overall Indian OTT market at a time when JioStar has a dominant position in live sports,” he said.
The deal, he said, would also help Netflix raise average revenue per user (ARPUs) in India, supported by a wider content slate and deeper catalogue.
“Netflix may also be able to renegotiate minimum guarantee and distribution deals more favourably with its partners, given its expanded content variety,” he said.