Multiplexes fading into oblivion?
With many filmmakers taking the digital release route owing to the lockdown, many properties are shutting shop due to lack of business
Film and television production has come to a halt again due to the second lockdown. The production sector will bounce back soon as the things are back to normal, and so will most of the filmrelated sectors albeit with bruises. But what happens to the multiplex cinema properties that sprang up like wild mushrooms all over the country?
Now that is a tough situation there. The first multiplex at Saket, Delhi, came up in 1997, owned by the PVR group. The 20th century was nearing its end, and the 21st century promised to be the era of multiplexes. Not only the big corporate houses, investors and even foreign companies entered this exhibition trade. This unchecked growth of the multiplexes was becoming a burden on the exhibition trade. Instead of catering to the captive movie watchers in one locality, around which the cinema was built, the multiplexes in many places came up in close proximity of each other vying for the same local viewer and thereby creating a competition for each other.
One of the reasons for the early multiplex rush was the favourable SOPs available to them from the governments in the form of tax holidays and such. While this led to the growth of multiplex screens, on the flip side it caused the downfall of the business of single screens. Single screens had no such benefits like the multiplex properties. Too add to that, the novelty of the multiplex experience was a lure for the moviegoer.
Multiplex cinema had not only driven the single screens out of business, it had also driven away the masses — the compulsive moviegoers — who had to catch a new film on its opening day, preferably, the first show. The admission rates were out of their reach.
Compare this to the single screen era. There was this system of a main cinema, which would be located at the centre of a city and a limited number of cinemas (say, 18 to 20) spread over rest of the city and its suburbs, to cater to the local population around it. That way, every cinema house had its regular and loyal audience. So, what has happened to these single screen cinemas that boasted of the glory of screening many memorable films? Most of them are lying in ruins as dead properties. Some have gulped their pride and converted into storage depots or parking lots while those still standing are looking for an alternate use of premise. Also, some are stuck in family property disputes.
But, are the multiplex properties going the same way as the single screens? Looking at how things stand now, let alone growth, the very survival seems impossible for a lot of them. To add to their problems is the boom of OTT platforms. The release of the major film, Salman Khan’s Radhe on Zeeplex this week, can set a trend that can mean a deathly blow to the multiplex business. (The next big film, Sooryavanshi, is expected to follow the OTT route as well).
The best in business have exhausted their reserves, are deep into new debts of borrowings from the open market. Cinepolis, a late entrant in the Indian exhibition trade, is said to have called it quits in the international exhibition trade. Carnival cinemas has not been able to stick to its commitments to the landlords. E Square cinemas, has palmed of all but two of their 49 screens, the two which they owned are given on long lease. Then there is the biggest North Indiabased SRS Cinema chain with 56 screens in 20 properties across 15 cities, it was in the offing even before the lockdown loomed. The story is the same with all such properties. If the situation does not change soon, the exhibition trade may be in the news for wrong reasons, like litigations.