THE SHOW MUST GO ON
Having been in the cinema industry for the past 30 years, I do have passionate views about its place in our lives as the most affordable and enjoyable out-of-home entertainment, as also on reviving the fortunes of this industry. I’ll get to the specifics of how to engineer this revival presently but don’t judge my views by the title of this piece.
The catastrophes of the past century did not prepare us for the depredations of this pandemic. Countries, governments and world leaders are improvising solutions on the run, and have responded disparately. But the so-called toss-up between lives and livelihoods baffles me. Without a doubt, life comes first, but livelihoods too need urgent attention. In a recent article in the
Financial Times, Martin Wolfe writes: “Maintaining the lockdown and saving the economy are mutually compatible; it’s not a matter of protecting people or the economy, but of protecting people and the economy.” The trade-off between lives and livelihoods is indeed a false binary.
I fully understand the measures taken by the Indian government so far to contain the spread of the virus. But the extended lockdown has also resulted in a huge economic crisis—jobs have been lost and many businesses are either vanishing or have reached a point of no return. After nearly six weeks of the lockdown, the lives-or-livelihood question is still poignant, some would argue, but the government has responded to the clamour to save the economy and a phased re-opening is finally under way.
However, a simple go-ahead to resume operations is no panacea for our economic woes; a lot more needs to be done. The worst-hit industries need some relief and a stimulus package to save them from irrecoverable long-term damage.
Coming to my own industry, exhibition cinema is the entertainment staple for India and, in volume terms, the largest in the world. No other country, including the US and China, has an annual turnover of 1,500 films and 1.5 billion tickets! Content is one leg of our industry and real estate— shopping centres and malls—the other. Directly and indirectly, we employ over 400,000 people, and a slackening of content creation for the big screen will have a domino effect on a lot of skilled jobs. On the other hand, as anchor tenants, if cinemas and multiplexes stop attracting audiences, it will impact the viability of malls and shopping centres. Some immediate interventions are in order, and here are my recommendations for all stakeholders:
Following the example of other countries, the government should consider: i) wage subsidies for the non-operational period; ii) a waiver of GST—if not an exemption from all taxes (GST, show tax, LBT)—for a year after resumption of operations; iii) interest-free loans for three years with a one-year moratorium; iv) bringing COVID-19 within the ambit of force majeure provisions.
The film industry has a big role in ensuring that new movies continue to come to the big screen. OTT platforms, which existed before COVID and will no doubt thrive after, will never be able to bring 60 per cent of the revenues the theatrical business generates. Besides, as Adam Aron, CEO of AMC Entertainment, articulated in a letter to the head of Universal: “Theatrical releases boost publicity, positive word-of-mouth, critical acclaim and downstream revenues”.
Cinema operators too need to reimagine the theatre experience to allay people’s fears—measures are being planned world over and we should adopt best practices, among them: i) staggered programming to help maintain physical distance and glass barriers at transaction points; ii) limiting physical interaction by digitising all payments, pre-packaging F&B items from a truncated menu and promoting self-service iii) medical check-ups for staff, deep cleaning and ULV sanitising of surfaces (a ULV or ‘ultra-low volume’ cleaning protocol can create an anti-bacterial layer that lasts up to 30 days); iv) strong internal/ external communication to maintain hygiene and answer customer queries.
In order to resolve any stress between malls and theatres, the real estate end of the industry, the pandemic should be declared a force majeure event, and as Atul Ruia, managing director of Phoenix Mills, put it: only a certain “reasonableness” can ensure that the new arrangements don’t damage either entity.
At the end of the day, after all the necessary precautions have been taken, it will be down to the consumer to ensure the show goes on. The safe confines of our homes cannot deliver the social experience we crave and need. ■
Ajay Bijli is the chairman and managing director of PVR Ltd
To resolve any stress between malls and theatres, the pandemic should be declared a force majeure event