ET Intelligence Group: Multiplexes are likely to record higher growth in revenue than broadcast (channels) companies following a strong line-up of movies and rising popularity of non-Hindi releases. In contrast, channel broadcasters are expected to face headwinds of dwindling advertising revenue amid high production costs. Analysts expect multiplex companies including PVR and Inox Leisure to record 18-20% top-line growth for FY24 compared with the FY23 estimated numbers.

The top-line growth is expected to pick up for multiplexes in the second half of FY23 given a large number of big-budget, star-studded, and spectacle films in Hindi, regional languages and English. Films such as Laal Singh Chaddha, Shamshera, Brahmastra (Part I), Liger, Adipurush, Avatar: The Way Of Water and Black Panther: Wakanda Forever 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 Coronavirus pandemic, movies were released on OTT after completing eight weeks of theatrical exhibition. During the pandemic, the time frame was shortened to four weeks amid falling footfalls at the movie halls and improving reach of streaming services.

Now that the ticket sales at theatres are improving as demonstrated by some of the recent hit movies, filmmakers, distributors and exhibitors have decided to restore the eight-week time frame starting August 1. This augurs well for multiplexes given a strong line-up of movies and the ensuing festive season. The move will provide more weeks of collections for multiplexes boosting their revenues in the coming quarters.

The 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 as they are available with subtitles or dubbed. “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, the revenue of broadcast companies may fall or show lower growth because of the slowdown in advertising from FMCG, auto and new-age technology sectors, and high production and marketing expenses arising from inflation.