BackProducers raise concerns over PVR Cinemas, INOX merger
PVR Cinemas and INOX Leisure agreed to merge in an all-stock deal on 27 March
PremiumThe ink has not dried on the PVR-INOX merger yet, and the film industry is already worried the new cinema giant might dictate show timings and OTT release windows and sideline smaller filmmakers further. Besides, consumers may have to shell out more for tickets and food, they said, if the new entity decides to create luxury cinemas offering premium out-of-home experiences.
On 27 March, multiplex rivals PVR Cinemas and INOX Leisure agreed to merge in an all-stock deal, creating a new theatre giant that might corner nearly half of all multiplex screens in the country.
“It is clear that both companies were feeling the pinch of a post-pandemic film world, and this merger reflects the times the market is in currently, where erstwhile competitors must come together to survive," a film producer and trade expert said on condition of anonymity. Monopoly, however, is not good for any business, the person said, adding things might worsen for small-budget films and their makers who were already getting a raw deal even earlier in terms of shows and screens.
“The lesser-known filmmakers who often don’t get big bucks even from OTT platforms will be at a disadvantage here, especially because the theatrical release is a matter of pride and reputation for them. The sense is that multiplexes may start by dictating terms with them first, asking them to pay high rates for their trailers to be shown or for in-cinema advertising," the person added. Even bigger films may be asked to part with a higher share of box office revenue from the first week of movie release itself or opt for a longer window between the theatrical and digital premiere of films.
PVR did not respond to Mint’s queries on the implications of the merger, while INOX declined to comment.
Arjun Singgh Baran and Kartk D. Nishandar, founders of GSEAMS, a Mumbai-based film and web content production house, said the advantage is that the number of movie screens in the country increases with the merger and producers or filmmakers can approach a single source for showcasing. “On the downside, since the distribution business is already monopolistic, if they plan to increase prices (of booking screens), the burden falls on the producers as the expense of distribution goes up," they said.
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