PVR asks producers to release films in theatres in a big way

How long will the cinema loving audience do without stepping into cinema houses to watch movies for it’s been a long time there have been no good releases even after the government allowed cinema houses to open their doors and exhibit films.

And, not everyone is comfortable watching films on the OTT platforms. So, there has to be a way out.

Looking at the problems, PVR Ltd. is said to be in talks with Bollywood producers to release their movies in cinema halls rather than on streaming sites like those run by Netflix Inc. and Amazon.com Inc. now that the pandemic is easing in India.

The country’s biggest cinema operator, which runs about 835 screens across 71 cities is currently operating most theaters at half capacity due to Covid-related restrictions. However, it sees benefits in the ‘age-old strategy’ of movies first coming to the big screen before being monetised on other platforms.

“This applies more to big films where the yield per eyeball in theatres is still the highest as compared to all the other exhibition platforms,” says Kamal Gianchandani, PVR’s chief of strategy.

Gianchandani, who is also the top executive of PVR’s movie production and distribution business, said major costs such as fees charged by top actors haven’t dropped for producers despite the pandemic-induced slowdown, and therefore, movie makers will seek better returns by releasing in cinemas first before less lucrative models like streaming.

A number of Indian films starring top actors such as Amitabh Bachchan, Akshay Kumar and Vidya Balan opted for streaming platform release in 2020 as theatres were shuttered by shelter-at-home rules. Post reopening, Christopher Nolan-directed science fiction Tenet and superhero movie Wonder Woman were the only prominent releases before Tamil action thriller Master opened to a big applause.

“We are hopeful that Master will be a case study based on which you will see, over the next few weeks, the Bollywood film guys and more South Indian regional guys planning the release calendar of the films which are currently ready,” averred PVR’s Chief Financial Officer (CFO) Nitin Sood said.

The Gurgaon-based company reported a loss of 491 million rupees in the three months ended December compared with a profit of 363 million rupees a year ago.