Multiplex News: Multiplexes are set for a blockbuster on a strong film series

Multiplexes are likely to record higher revenue growth than broadcasters due to a strong film lineup and the growing popularity of non-Hindi releases. On the contrary, broadcasters are expected to face headwinds due to reduced advertising revenue amid high production costs. Analysts expect multiplex companies, including PVR and record revenue growth of 18-20% in FY24 compared to FY23 estimates.

Multiplex sales growth is expected to accelerate in the second half of the current financial year, given the large number of big-budget, star-studded and spectacular films in Hindi, regional and English. Movies like Laal Singh Chadda, ShamsherBrahmastra (Part I), Liger, Adipurush, Avatar 2 and Miracles (Captain Marvel 2) Movie theaters are expected to be crowded.

In addition, the multiplexes are expected to benefit from a longer run of movies in theaters before debuting on OTT streaming services. Before the pandemic, films were released on OTT after completing an eight-week theatrical run. During the pandemic, release times were reduced to four weeks due to lower theater attendance and increased coverage of streaming services.

Grab

Now that theater ticket sales are improving, as evidenced by some of the recent hits, the filmmakers, distributors and exhibitors have decided to reinstate the eight-week deadline starting August 1st. This bodes well for the multiplexes, which have a strong lineup of films and the ensuing holiday season. This decision will provide more weeks of collections for multiplexes, boosting their revenues in the coming quarters.

Another positive factor is the growing popularity of regional content. According to the distributor, who asked not to be named, audiences are more open to films in the regional and English languages ​​amid the growing practice of dubbing and subtitles. Multiplexes no longer rely heavily on Hindi films for collections. Most of the blockbusters in recent months have been either in the regional language or in English,” he added.

On the other hand, broadcasters’ revenues may fall or show less growth due to slower advertising growth in the consumer goods, automobiles and new technology sectors, as well as high production and marketing costs associated with inflation.