STOCK MARKET BSE NSE

Tough road ahead for film industry as Delhi shuts down theatres due to Omicron

Delhi’s decision to close cinemas couldn’t have come at a more worrying time for multiplex owners as very recently they have started witnessing a surge in ticket bookings. 

Published: 29th December 2021 03:54 AM  |   Last Updated: 29th December 2021 10:05 AM   |  A+A-

Movie theatre, Cinema Theatre, Cinema hall

Representational Image

By Express News Service

NEW DELHI:  The Delhi Government’s decision to shut down cinemas while enforcing the ‘yellow’ alert of the Graded Response Action Plan (GRAP) has caused massive uncertainty and could lead to irreparable damage for the Indian Film Industry, said Kamal Gainchandani, President, Multiplex Association of India. 
Gainchandani, who is also the CEO of PVR Pictures, recommended a seating capacity restriction of 50% to be reintroduced at cinemas.

Delhi’s decision to close cinemas couldn’t have come at a more worrying time for multiplex owners as very recently they have started witnessing a surge in ticket bookings. 

This decision may also severely dent revenues of multiplex owners in the coming quarters who are already deep in losses.

During the second quarter of the current financial year (Q2FY22), multiplex chain operator PVR had reported a consolidated net loss of Rs 153.13 crore, while Inox Leisure’s consolidated net loss had widened to Rs 87.66 crore in the same quarter. 

The two leading chains and film industry overall were expecting a big revival in the coming quarter on the back of rapid vaccination and big releases. However, the fast spread of the omicron variant of Covid-19 has again posed a big threat to the sector’s revival.

Gainchandani said that the period since March 2020 is undeniably the most challenging period faced by Indian cinemas and requested that cinemas should get equal treatment with comparable industries and institutions.

He also urged the Delhi Government to consider introducing “double vaccination requirement” to enter cinemas, as is the case in some of the other states (including Maharashtra).

Following the Delhi government’s announcement, shares of movie theater chains PVR Limited and INOX Leisure Limited fell sharply. PVR shares tumbled 3.58% to close the Tuesday session at Rs 1,286 a share while Inox closed marginally lower at Rs 351.  

Looming uncertainty

While the curb will have a big impact on the box office collections of recently released movies like 83, Spider-Man: No Way Home, what’s more worrying for the industry is the possibility of a similar step by other state governments.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp