IMAX caught in crossfire between multiplex chains and producers over early video streaming

New Delhi: Multiplex chains that aren’t fans of movie producers in southern India releasing their films on streaming platforms early have been refusing to screen those movies in the Hindi belt, according to trade experts. Caught in the crossfire are not only fans but also premium cinema format IMAX.

Tamil language blockbusters such as Leo and GOAT, both starring Vijay, were not screened on IMAX theatres in the Hindi-speaking belt. Of IMAX’s more than 30 screens in India, only eight are in the southern markets.

“Technically, IMAX cannot get involved in these agreements because it is a format licensed by theatre chains, unless there is a commitment at the global level to play a film. But they are definitely losing out on business in the Hindi belt this way,” said film producer Girish Johar. “Anyway, few Indian titles are IMAX friendly and suited to the large-scale format.”

It is perplexing for audiences in the Hindi belt to not find these films even in regular theatres, said Johar. 

“There is a loss on all fronts, including mall walk-ins, food and beverage sales, and advertising. Plus, that audience habit of coming to theatres slows down,” Johar said, adding that films like GOAT and Leo could have earned an additional ₹30-50 crore at the box office if those had been screened across all formats in northern markets as well.

IMAX and multiplex chains PVR Inox and Cinepolis didn’t respond to Mint’s emailed queries.

IMAX tries to make up for the loss by screening these films in overseas markets, said independent trade analyst Sreedhar Pillai, adding that other premium cinema formats such as EPIC that operate outside of multiplexes are also entering Indian markets. 

But currently, “the multiplexes call the shots in the north, so they can decide what to do there,” Pillai said.

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More premium formats, but where are the movies

Premium cinema formats such as IMAX and 4DX have been trying to expand in India for a while, but, according to trade analysts, there aren’t enough compatible movies to keep such screens running for even half of the year.

Many of the IMAX and 4DX format movies released in India are Hollywood films, and cinemas hosting these formats are forced to screen such movies for longer, they said.

While producers of Hindi and regional language movies are beginning to shoot or convert their films into such premium formats, those movies fetch only 15-20% of revenue for major multiplex chains, according to the trade experts. 

“When a film moves to OTT sooner, everyone loses,” said Amit Sharma, managing director of Miraj Entertainment, a company that operates multiplex theatres. “The first losers are the exhibitors who cannot screen them, then the producers who would have benefited from more eyeballs, then format owners (like IMAX), and finally, the audience, for whom the loss of access is the greatest.” 

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