The topline growth is expected to pick up for multiplexes in the second half of the current fiscal year given a large number of big-budget, star-studded, and spectacle films in Hindi, regional and English languages. Films such as Laal Singh Chadda, Shamshera, Brahmastra (Part I), Liger, Adipurush, Avatar 2 and The Marvels (Captain Marvel 2) are expected to generate high footfalls in theatres.
Besides, multiplexes are expected to benefit from a longer run of movies at theatres before debuting on over the top (OTT) streaming services. Before the pandemic, movies were released on OTT after completing eight weeks of theatrical exhibition. During the pandemic, the time frame was shortened to four weeks of theatrical release amid falling footfalls at the movie halls and improving reach of the streaming services.
Now that the ticket sales at the theatres are improving as demonstrated by some of the recent hit movies, the filmmakers, distributors and the exhibitors have decided to restore the eight-week time frame starting from August 1. This augurs well for the multiplexes given a strong line up of movies and the ensuing festive season. The decision will provide more weeks of collections for multiplexes boosting their revenues in the coming quarters.
Rising popularity of regional content is another positive factor. According to a distributor who requested anonymity, audiences are more open to films in regional and English languages amid rising subtitling and dubbing practices. “Multiplexes no longer have a very high dependence on Hindi films for collections. Most blockbusters in recent months have been either in regional or English language,” he added.
On the other hand, revenue of broadcast companies may fall or show lower growth because of slowdown in advertising from FMCG, auto and new-age technology sectors, and high production and marketing expenses arising out of inflation.