As actor Allu Arjun steps into the cinema exhibition business, joining southern stars like Mohanlal and Mahesh Babu, industry experts say the move signals a growing trend of film celebrities extending their influence beyond the screen.
The trend is beginning to surface in the north as well, with actor Ajay Devgn owning a multiplex chain. Such moves, experts say, can improve the industry’s engagement with stakeholders by placing a creative voice at the helm, bolster brand recall and enhance distribution through better coordination and sharper audience feedback loops.
However, the core realities of exhibition—a capital-intensive model with unpredictable returns—remain firmly in place.
“For actors, it makes strategic sense because it allows them to participate across the film value chain—content, distribution, and exhibition. In an environment where box office dynamics are evolving and digital platforms are strong competitors, owning cinema assets is a way to deepen their engagement with theatrical audiences and strengthen the overall ecosystem,” said Sachiin Guptaa, country head of digital service provider UFO Moviez.
From an industry standpoint, such investments also signal confidence in the theatrical experience, Guptaa added. Big stars have a strong understanding of audience behaviour and fandom, when they invest in cinemas, they effectively invest in the future of the big-screen experience.
Experience upgrade
Actors bring significant brand equity and marketing muscle to exhibition. Their presence can reposition cinemas as experience-led destinations rather than mere screening venues.
Star-backed theatres often emphasise premium formats, cutting-edge projection and sound technology, and fan-centric experiences around major releases. They also foster deeper community engagement. Launches, fan events and celebrations tied to big releases can boost footfalls and revive excitement around the theatrical window.
From an ecosystem perspective, such investments can accelerate the modernization of cinema infrastructure across cities.
Southern clout
“At one level, it is a natural brand extension—much like celebrities or chefs launching their own restaurants or product lines. Actors drive strong brand recall, audience trust, and a clear understanding of viewer preferences, which helps elevate cinema's positioning and strengthen its market pull,” said Bhuvanesh Mendiratta, managing director, Miraj Entertainment Ltd.
In the South, this influence is even more pronounced, Mendiratta pointed out. The actor-producer ecosystem is far more influential, and their collective voice carries significant weight.
“When actors are involved in exhibition, it strengthens the industry’s ability to engage with internal and external stakeholders, including during policy discussions and regulatory matters. Their presence adds both credibility and influence, which can be important for the overall growth and alignment of the exhibition sector,” he said.
Business realities
The risks, however, are substantial.
Exhibition remains a capital-intensive, operations-heavy business with long gestation periods. Many star-owned chains succeed largely because experienced exhibition partners manage day-to-day operations and programming.
Maintaining content neutrality is another critical challenge. While there may be a tendency to favour associated films, long-term credibility depends on an audience-first, balanced programming strategy.
The sector also continues to grapple with high real estate costs, volatile occupancy levels and evolving consumer expectations. Brand equity may generate initial traction, but sustained success ultimately hinges on execution, location strategy and operational efficiency.
“At the moment, returns from cinemas are not great with only around 10 hits in a language per year. So the only option is to go premium and price at a certain rate, which existing chains are already doing,” said film producer and distributor Yusuf Shaikh, also founder and chief executive of low-cost theatre chain Janta Cinema.