Filmmakers make 70-75% of the total revenue generated by a film by their theatrical release; there is no economic logic to for a filmmaker to contract theatrical release, PVR CFO said.
Days after RIL chairman Mukesh Ambani announced that Jio Fiber subscribers will get to watch new movies on their Jio TVs on the day of the release, a PVR executive said that the multiplex company is not worried about the competition from over-the-top platforms. “OTT platforms are going to have a positive rub off on theatrical consumption … we are not worried about any announcements by any OTT player,” Nitin Sood, CFO, PVR, said in an interview to CNBC TV-18. Filmmakers make 70-75% of the total revenue generated by a film by their theatrical release; there is no economic logic to for a filmmaker to contract theatrical release, he added.
Also, experience is another reason that the customers may not feel swayed towards OTT platforms. “When you step out of your home to go to a closed environment of a big screen, that is a totally different experience from watching a movie at home. These two are not comparable,” Sood told the news channel.
No slowdown for big screens
While several industries have been reeling under ongoing slowdown, the same has not taken a hit on the big screens watching. PVR has not seen any impact of people cutting down spendings or other effects of slowdown as people continue to eat and watch at PVRs, Nitin Sood said.
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In fact, PVR had recently announced that it is expanding its footprint in tier 2 and tier 3 cities with the launch of sub-brand — PVR Utsav. The first multiplex has been opened in Satna, Madhya Pradesh. “PVR UTSAV is a natural progression for us, further consolidating our foothold in the small towns of India,” Sanjeev Kumar Bijli, joint managing director, PVR had said a fortnight ago. The company is now targeting a wider audience with lower-ticket prices in the range of Rs 100-150. PVR Cinemas operates 797 screens now.
Meanwhile, Reliance Jio, which has already brought disruption in the telecom industry, now eyes expansion in entertainment. Reliance Jio has its own platform called JioCinema and the company is also investing in other platforms like Alt Balaji.