Multiplexes to boost film industry

Televisionpoint.com Team
The boom in multiplexes will more than double box-office collections for the Hindi film industry to Rs 10,000 crores from the present levels of Rs 4,500 crores in the next 18-24 months, according to industry sources.

The sources said the optimistic outlook is based on the expansion plans chalked out by multiplex operators like INOX Leisure, PVR Cinema, Adlabs, E-city and Waves. Over the next 18-24 months, six of the largest multiplex operators in India are likely to add approximately 200-240 screens spread across 50-60 new multiplexes. These multiplexes will have a cumulative seating capacity in excess of 55,000-60,000.

Growth of multiplexes will increase the overall revenue generation for Hindi films, in turn increasing the revenue flow-back to the film chain. Another positive impact of multiplexes is that it leads to transparent and organised boxoffice reporting.

According to studies done by CII, the overall occupancy in cinema theatres have been a mere 35 per cent. However, these studies have also indicated that multiplexes have considerably higher occupancy rates. Industry experts believe the average occupancy could be in the region of 60 per cent.

Given the fact that by the end of 2006, over 135 multiplexes will house more than 1,60,000 seats spread across more than 500 screens, box collections could con siderably go up, beginning the fiscal 2006-07 itself. These multiplexes will have significant direct positive impact on the business economics of film production, financing, distribution and exhibition and indirectly on other ancillary markets.

In the multiplex sphere, almost all the major participants have announced an aggressive expansion plans. PVR Cinema, INOX Leisure and Adlabs in particular have gone into overdrive to own at least 100 screens each in the next two years.