Indian theatrical biz stares at ₹3,000 cr loss ahead of festive season
Bollywood or the Hindi film industry will account for around ₹2,000 crore of total losses in the film exhibition industryIn 2019, Bollywood alone had notched up ₹650 crore in the October-December period while collection in the first three quarters was around ₹3,700-3,800 crore
NEW DELHI: India’s film exhibition market sees little hope ahead even as many other businesses are looking at the upcoming festive quarter beginning October to maximise sales and bounce back as much as possible after a dismal financial year. The theatrical market is staring at losses of almost ₹3,000 crore across languages in the six months that theatres have remained shut since March, trade experts say. Of these, Bollywood or the Hindi film industry accounts for around ₹2,000 crore.
To be sure, these figures only refer to losses incurred by the exhibition sector in terms of the box office potential of this period. There is no way to really keep track of the umpteen projects stuck in production, without insurance cover, or those about to be greenlit and then put on the backburner, the numerous sets that have had to be taken down, the number of people fired by companies besides, of course, the number of cinemas that have shut shop permanently or those that will find it difficult to revive business post the massive losses of this period.
“The covid-19 pandemic has had a crippling effect on the film industry," said film trade and exhibition expert Girish Johar. “And we’re not even talking of the losses for allied streams of revenue, like tourism or hospitality industries when units travel for shoot, or food and beverage, merchandising, advertising for radio, television or even digital platforms."
Last week, Reliance Entertainment Group chief executive Shibasish Sarkar had tweeted, pointing to the government initiatives to protect jobs in other countries unlike India. In the UK, for instance, more than 9 million workers are expected to be furloughed, or put on state-paid leave, under the government's job retention scheme.
“In India thousands and millions have lost jobs or (suffered) pay cuts with no income of cinema hall owners. Halls are now closed for six months," Sarkar had said.
To be sure, unlike many other businesses, the film industry cannot afford to keep its hopes too high from the upcoming festive quarter though the period has traditionally been hugely lucrative for business. Last year, Bollywood alone had notched up ₹650 crore in the October-December period while the first three quarters of the year had brought in box office collections of ₹3,700-3,800 crore. Hits like action thriller War ( ₹292.71 crore) and ensemble comedy Housefull 4 ( ₹205. 60 crore) had bolstered the revenues of the last quarter. Despite the scheduled release of Akshay Kumar’s Sooryavanshi and sports drama ’83 for this Diwali and Christmas respectively, the theatrical market knows it has to be realistic.
For one, there is little fresh content to draw audiences to theatres even if cinemas reopen some time in October, that is, if permits come in by the end of September. Most films with appeal at the box office that were ready for release, both medium-budget and big-ticket have already made their way to streaming platforms. Even if there is something on offer, nobody really knows if people will feel confident enough to step into closed auditoriums with strangers.
“Things will get better once we are back in action for sure. We have to be optimistic but we can’t ignore the facts. Winter will set in post November and we know that the virus spreads in cold weather," Atul Mohan, editor of trade magazine Complete Cinema said pointing to several researches that paint a grim picture for colder weather, when the coronavirus may re-emerge.
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