Left out of Unlock 4.0, multiplex body says owners will lose Rs 2,000 crore and that thousands of jobs will be under threat
Mohar Basu, Uma Ramasubramanian (MID-DAY; August 31, 2020)

Exhibitors were looking forward to the theatrical release of Christopher Nolan's Tenet on September 18 to bounce back into business. However, their hopes were dashed on Saturday as the government announced that cinemas will continue to remain shut till September 30 as part of the Unlock 4.0 guidelines.

Several exhibitors and distributors started the online petition #SupportMovieTheatres on Sunday, urging the government to reconsider the decision.

Exhibitor Akshaye Rathi says the nationwide theatre shutdown that began on March 14 due to the spread of Coronavirus has left the sector bleeding, with the country reportedly losing 10 per cent of its screen count in the interim. "If salons, malls and restaurants are allowed to function, why are cinemas being singled out? We have all broken into our savings to continue paying our staff, but now, we will probably have to let go of people who have been with us for decades. It's not possible to continue paying salaries with no income," he laments, adding that theatre owners have to pay property taxes, rents and electricity bills despite the shutdown. He rues that the ongoing dialogues with the home ministry, and the information and broadcasting ministry, since June have yielded no result. "There has not been any financial support from the government or an attempt to waive off the taxes."

The theatre business is estimated to have lost close to Rs 2,000 crore in the last five months, with layoffs becoming a harsh reality. "The industry employs over five lakh people; additionally, it also supports vendors who supply snacks. With no solution in sight, one can expect job cuts that run into lakhs," adds Rathi.

Amit Sharma, MD, Miraj Entertainment, hopes the government compensates for the one-month delay by allowing theatres to function at 50 per cent capacity when they re-open. "If we are allowed to open as part of Unlock 5 plan, there is no point restricting the audience capacity to 30 per cent. We will negotiate for a 50 to 60 per cent seating capacity." He points out that the dry spell has not been as hard on the film industry. "Only the multiplex operators are losing money; the content creators have recovered their costs by taking the digital route." While several films have sought a digital premiere, the makers of Sooryavanshi and '83 have deferred the films' release to Diwali and Christmas respectively to avail the advantage of a theatrical run.

Mohan Umrotkar, CEO, Carnival Cinemas, states that theatres are likely to re-open only by mid-October. "We request the government to announce the date in advance so that we can decide [on the move line-up] with the content creators," he says.

With talk of cinemas reopening soon, the industry debates if Christopher Nolan’s newest thriller will make it to the country
Himesh Mankad (MUMBAI MIRROR; July 30, 2020)

In the midst of the ongoing Coronavirus pandemic, Christopher Nolan’s espionage thriller, Tenet, will release in 70 countries in a phased-out manner, between August 26 and September 18. These include UK, US, Australia, New Zealand, Canada, France, Germany, Italy and Spain among others. India is missing from the list as theatres are yet to open here. But Mohan Umrotkar, CEO, Carnival Cinemas, is confident that Tenet will be the first film to open in India and give a sense of confidence to other filmmakers to follow suit.

“We are awaiting government approval. We don’t have a date yet, but hopefully, cinema halls will open within the next 12-15 days,” Umrotkar informs.

Trade analyst Komal Nahta endorses this, saying theatres are looking to reopen in August with limited seating. “The government has suggested 25 per cent occupancy, the film industry wants 50 per cent. It’s all ifs and buts for now, but Tenet should be the first major release,” he asserts. Manoj Desai, Executive Director, G7 Multiplex and Maratha Mandir, however, is not too optimistic. “I have not received any notification yet and with Coronavirus at its peak, I don’t think theatres will open in August,” he says.

Shibasish Sarkar, CEO, Reliance Entertainment, who has two big films— Sooryavanshi and ’83—which have been announced for release on Diwali and Christmas respectively, is equally wary. “There have been talks of opening cinemas in India in August, but with 50,000 cases every day, I think it will eventually happen in a phased-out manner, state by state. Meanwhile, we’ll be keenly observing the box-office trend of Tenet across the globe. It will be a case study for us as a Christopher Nolan film is much sought after by the audiences,” he reasons, adding that their tent-pole films will be targeting a release in 80 to 100 countries.

Despite seat-distancing, will big releases prove to be a shot in the arm for industry in last quarter of 2020?
Ankita Chaurasia (MUMBAI MIRROR; July 8, 2020)

The Coronavirus pandemic has stripped cinema halls of audiences. However, with film and TV productions gradually returning to work and bigticket films like Sooryavanshi, ’83, and Radhe lining up for theatrical releases, the last quarter of 2020 may just be the comeback they need.

Optimists point to the fact that it’s the season of festival weekends, star-power and Diwali, Christmas blockbusters, which could very well turn the tide for the industry. Meanwhile, sceptics wonder if movie-goers would risk venturing out after months of social distancing, especially when fresh content is now home-delivered.

For starters, the total shutdown of cinema halls isn’t unprecedented. Pandemics, riots, and protests have disrupted operations in the past—in 2009, the stand-off between Bollywood producers and multiplex owners over revenue-sharing had brought the industry to its knees for over four months. “But at least there was a tentative end date in sight,” points out Ramesh Sippy of Raksha Distributors and President of the Indian Motion Pictures Distributors Association (IMPDA), insisting that the initial response to theatres reopening will be subdued. “I have been in the house for the last 100 days; why should I step out for a film?” he argues, adding that only high-value content can lure people back into theatres. “Salman Khan, Akshay Kumar, Ranveer Singh have a pull at the box office but you can’t expect a rush. It will happen gradually and in phases,” he predicts.

Exhibitor Akshaye Rathi is willing to allay fears by slashing ticket and F&B rates to compete with OTT platforms. “There’s no distancing in airplanes and yet, people are back to flying regularly. We are reserving flanking seats for units of the audience, which should assure them of safety. By now, we know that you can even enjoy a match at the Eden Gardens with 80,000 other people and walk out unaffected if you follow protocol,” he reasons.

But won’t the reduced rates and empty seats further hamper their already dwindling cash flow and also hit the film’s collections for a toss? “The national occupancy average is 30 per cent and since many films have taken the digital route and several others are yet to be completed, we won’t see many releases, which means longer runtime and numerous shows for one film,” he explains.

Echoing Rathi’s thoughts, Mohan Umrotkar, CEO, Carnival Cinemas, assures that blockbusters can still be a reality. “Maybe the film will have to run half-a-day more to clock in as much profit as it would have otherwise made in a two-day run, but we will try and run for additional hours, with permission from the government,” he promises, adding that as a theatre, they’d only lose out on 20 per cent occupancy due to revised seating arrangement as only a few shows have full occupancy.

Meanwhile, trade analyst Amod Mehra is relying on the spirit of Mumbaikars to set the cash registers ringing again. Exulting about zombie film Alive doing well as soon as theatres opened in South Korea and halls returning to business in Sri Lanka, he asserts, “Hundred to 200 people die on our streets and local trains every day; a virus won’t stop the audience. Just like they flocked the liquor stores, they’ll be queuing up for tickets for an afternoon of entertainment, as opposed to the time-pass they’ve been subjected to on digital platforms”. In the same breath, he points out that no amount of planning will be fruitful unless the government gives a go-ahead.

Manoj Desai, Executive Director, G7 Multiplex and Maratha Mandir, is equally flustered about the fact that neither Prime Minister Narendra Modi nor Chief Minister Uddhav Thackeray have addressed the plight of theatre owners. And while he is elated that Akshay Kumar has assured him that his Rohit Shetty-directed Sooryavanshi will be a theatrical release, he is not too sure of the outcome. “People won’t come to the theatres for at least four months. Even restaurants are offering home deliveries because they know patrons won’t go outside to eat. Watching films is a similar experience - enjoyable but not essential,” he shrugs.

That makes it seem like going the digital way is a safer choice for the films in question, but Komal Nahta begs to differ. Agreeing that it’s a gamble but one that producers of the aforementioned films had to take due to lack of an alternative, the trade analyst elaborates, “You don’t make a film of Rs 150 to Rs 200 crore just to break even; you need some big profits.” But if the odds work out in the filmmakers’ favour, Komal believes that the payoff would be huge. “These films can be even bigger blockbusters than we have witnessed before because of the lack of competition”.

Vinay Chowksi of Aum Exhibitors is just as hopeful about the outcome and if he is to be believed, so is the trade. “Diwali is an auspicious time for us and a long lull will mean the audience would be waiting to rush back to theatres. If a vaccine is found by then, social distancing won’t be required either,” he gushes.

While reopening theatres is still a way off, multiplexes and single screens are already mulling competent pricing, comeback
Himesh Mankad (MUMBAI MIRROR; May 22, 2020)

The announcement of Gulabo Sitabo and Shakuntala Devi heading for direct-to-digital release has fueled a debate within the industry. While exhibitors have voiced disappointment at lack of support from filmmakers, many on the social media have come down heavily on theatre owners, particularly multiplexes, reminding them that they had also robbed the single screens of their business, forcing many to down shutters and turning away independent filmmakers. Grievances against expensive nibbles, besides exorbitantly-priced tickets, spilled out, too. Darshan Kuldeep, one of the disgruntled cinegoers, summed it up, saying, “You guys are pro now in selling 350 Rs popcorn, 150 Rs samosa and 100 Rs water bottle, so start grocery business and be #atmanirbhar (sic).”

Reacting to this, Mohan Umrotkar, CEO, Carnival Cinemas, points out that the debate over food and beverage prices is not new. “You pay for not just the food but also the ambience. It’s a business model. We don’t earn much from the sale of tickets as that money is divided among the government, distributors and us. That’s why food is integral to our business,” argues Umrotkar, pointing out that this is all that theatre owners have, in addition to other expenses like rent and overheads, unlike producers, who can monetize satellite, digital and music rights of films. “Prices of tickets and F&B (food and beverage) depends on show timings, too. Plus, there are combos. There’s actually very little left for us.”

Akshaye Rathi, a theatre owner from Nagpur, reasons that the audience has the option of watching a film at a multiplex or an affordable single screen depending on their pocket. “The difference between the two is akin to choosing between a five-star hotel and a roadside dhaba. And we have both billionaires and commoners in our country,” he quips, confident that in the post-Coronavirus world and with recession a reality, single screens will bounce back strongly.

Raj Bansal, a multiplex owner from Jaipur, believes that bringing audience back to the theatres will require incentives like affordable ticket prices, concession in snacks and free coupons. “Cinema will never die but this is the best way forward,” he concludes.

Producers' Guild says filmmakers compelled to move to OTT due to the uncertain times
Mohar Basu, Uma Ramasubramanian (MID-DAY; May 16, 2020)

On Thursday, Gulabo Sitabo became the first Bollywood film to bite the OTT bait, inviting the wrath of several exhibitors and distributors who felt betrayed that the makers had bypassed a theatrical release. Leading multiplex chain Inox immediately warned of "retributive measures" while PVR Cinemas urged filmmakers to hold off their projects till the theatres re-open. The rift only widened on Friday with Amazon Prime Video announcing the direct-to-web release of seven films, including Vidya Balan's Shakuntala Devi.

With two big releases — Sooryavanshi and '83 — waiting in the wings, trade sources indicate the industry has made losses upwards of Rs 600 crore, keeping in mind their domestic and overseas business, satellite rights, and OTT and music deals. The recent move has only added to the exhibitors' woes. "The distribution sector earns around Rs 75 crore from a big film, and about Rs 15 crore to Rs 25 crore from a medium-budget venture. Exhibitors and distributors are looking at a collective loss of around Rs 50 crore from Gulabo Sitabo and Shakuntala Devi's OTT premiere," says a trade source.

Mohan Umrotkar, CEO, Carnival Cinemas, echoes the sentiment as he reasons that the two medium-budget films would have enjoyed strong footfalls once the theatres reopened. "Ayushmann Khurrana is having a golden run at the box-office, his film would have garnered close to Rs 75 crore. Couple that with Vidya's film, and the two would have generated close to Rs 95 crore at the box-office. So, we are staring at huge losses," he says.

However, he acknowledges that producers cannot wait indefinitely. "I understand there will be a rush of movies when the lockdown is lifted. That said, we were expecting them to stand by us because we are family."

Meanwhile, the Producers' Guild hasn't taken kindly to the aggressive stance adopted by Inox. Manish Goswami, vice-president, Guild, points out that producers have taken the step out of sheer necessity. "In such times, a stakeholder will only wait till a point, post which he will seek alternatives. After all, for the next six months, people won't have the confidence to go to theatres. They will not [take the risk of] community viewing unless it is a bumper project," he says.

Though refusing to take sides, trade analyst Taran Adarsh doesn't deny that filmmakers may be settling for less than their films' worth. "Assuming satellite deals stay intact, [the makers] are still losing out on their movies' overseas business. But my sympathies lie with the producers, who have been constantly asking about the possibility of theatres reopening. It's unfair to expect them to hold off their films [indefinitely]. It would help if producers and cinema owners enter a negotiation."



Will They? Will They Not?
Over the next few weeks, key players in the digital market may acquire the rights of several Bollywood films. Sources say makers of Gunjan Saxena: The Kargil Girl, Ludo and Jhund are in talks with streaming giants for a direct-to-web release. "They are all complete and awaiting release. Indoo Ki Jawaani, Roohi-Afzana and Shiddat are in the last leg of post-production and may explore the digital route," says a trade source.

Last month, this paper had reported that Akshay Kumar was contemplating releasing Laxmmi Bomb directly on Disney+Hotstar. "His films bring good revenue at the box-office," says Umrotkar, alluding that Laxmmi Bomb seeking an online release will be a severe blow for exhibitors.

Radhika Bhirani (HINDUSTAN TIMES; May 9, 2020)

Imagine a big screen, but in an open space; a reclining seat but in your car; popcorn run to your vehicle; and a personal sound system. As old-school drive-in theatres are being revived across the world — Germany, Spain, Lithuania, South Korea and parts of the US for instance — amid the lockdown, experts feel the concept may not be feasible in India.

Producer Bhushan Kumar believes, “Drive-in theatre concept is far-fetched in this kind of a situation where a normal theatre’s survival is uncertain as of now.”

While drive-in isn’t an unexplored concept in the country – Ahmedabad, Chennai and Gurugram have one each – it isn’t one that has flourished. “Whether there would be renewed traction in drive-in properties because of Coronavirus or an uptake in numbers, that is something one will have to see when this whole situation is a little more settled,” says PVR Pictures CEO Kamal Gianchandani, who finds drive-in theatre an “interesting proposition” and reveals they’re developing one in the country’s film capital, Mumbai.

While drive-ins may be a “unique experience” for the millennial and Gen-Z audience, Alok Tandon, CEO, INOX Leisure Ltd, says “managing to secure a large expanse of space at a comfortable distance”, can be an uphill task. Real estate costs, especially, don’t make drive-ins a commercially viable exhibition business proposal, observes Mohan Umrotkar, CEO, Carnival Cinemas.

As trade analyst Komal Nahta says, “Drive-in theatres will take a long time to get constructed. Till then, one hopes the Covid-19 vaccine will come out.”

Several theatres in Mumbai may be compelled to deduct staff salaries if shutdown extends to mid-April
Uma Ramasubramanian (MID-DAY; March 23, 2020)

As theatres across the state enter the second week of shutdown, exhibitors admit that the move — though necessary — has hampered their business. While the theatre owners have made provisions for this month's salaries of their employees, they agree that they may have to take hard decisions if the shutdown extends well beyond March 31.

Mohan Umrotkar, CEO, Carnival Cinemas that has seen its senior level management take a voluntary pay cut, says, "We will assess the situation post April 1. If normalcy is restored, there won't be any deduction in salaries. But if this extends till the second week of April, we may have to deduct salaries of our staff. But we will not lay off anyone," he asserts.

Amit Sharma, MD, Miraj Cinemas, also resolves to stand by its staff. "Currently, we have given the employees paid leave for a month. If the shutdown exceeds, we will take a call on the salary cut but [it will be exercised] only at the senior level. There will be no layoffs at Miraj."

Even as uncertainty looms large due to Covid-19 outbreak, cinema halls make salary provisions for employees
Sonil Dedhia (HINDUSTAN TIMES; March 22, 2020)

The entertainment industry is reeling under the impact of Covid-19 outbreak, like other businesses. Cinema halls have been shut till March 31 in most states and film shoots have been halted. Even the release of big-budget films, such as Sooryavanshi and ’83, has been postponed.

Amid the crisis, cinema owners are trying to ensure that there’s a salary provision in place for employees. Manoj Desai, executive director, G-7 multiplex and Maratha Mandir, Mumbai, informs that the non-operation of theatres won’t result in the slashing of the salaries. “The shutdown is a huge blow. We have a staff of around 100 people across our two properties. We will give them the entire salaries till March 31. If the government continues the shutdown, we will take a call accordingly,” Desai says.

A similar policy is being followed by Miraj Cinemas. Bhuvanesh Mendiratta, associate vice president, operations and development, of the cinemas, says, “The situation is uncertain. We don’t know for how long the crisis will last. We are dispersing a 100% payment to our employees till March 31. What happens after that depends on how critical the situation is.”

At Carnival Cinemas, Mohan Umrotkar, CEO, informs that the senior level management has taken a salary cut. “The board members and those at the CXO level have taken a voluntary cut of 25% till the operation is shut,” says Umrotkar, adding that the other employees have been asked to exhaust their paid leaves. Umrotkar, however, adds that the government provides some relief in terms of concession or exemption, failing which the entire industry will have to take drastic measures. “There are fixed costs like rent, electricity etc involved. We are hoping the government can provide some respite by reduction in fixed cost,” he says.

Anish Jain, head of finance and accounts at Raj Mandir, Jaipur, says, “We shut down our theatre on March 14, as directed by the Rajasthan government. Every employee will be given their salary. We will stick to this till March 31.”

A spokesperson from SVF Cinemas, West Bengal, says, “All employees across all our verticals will be paid full salary till March 31. We have planned to pay employees in advance, in case there is a lock down.”

Trade analyst Amod Mehra says that theatres across the country will face a severe financial blow. “I don’t think we have ever witnessed such a shutdown in the history of Indian cinema. Mumbai alone has about 200 screens, which will stay closed till March 31. It’s hard to quantify exactly how much money is at stake. If the closure continues till next month, this would have severe implications including job and salary cuts.”

We reached out to Inox Cinemas who refused to comment on the matter. At the same time there was no response from PVR cinemas till the time of going to press.

With inputs from Titas Chowdhury



Piping hot business no longer

With a daily consumption of over 50,000-60,000 samosas at theatres across Mumbai, the snack is a hot favourite. For the past five decades and three generations, most cinema halls in Mumbai have got their daily supply of samosas from A-1 Samosa, situated in Sion. But now with the shutting down of the cinema halls, A-1 Samosa’s business is suffering badly. A representative from the firm, who doesn’t wish to be named, says, “The business is affected badly. It’s a complete shut down. We are operating at 25% of our capacity. Theatres are going to be shut for at least another 10 days and it might even continue if the situation doesn’t improve.”