The Big Screen Footfall Pickup Was A Blip As Another Slowdown Looms

The pandemic has changed the rules of the game for movies. Audience requires a lot more ‘push’ to walk into the theatre to watch a movie.

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Indian cinemas had been pulling in a tad over 1.4 billion footfalls before the pandemic. Four years after Covid-induced lockdowns and three years since theatres opened, movie admissions are nowhere near their pre-pandemic peak. 

Theatre footfalls, which looked like they were rebounding in 2022, fell again in 2023. As per EY and the Ficci report, admissions declined 5% from 94.4 crore in 2022 to just over 90 crore. 

"Industry discussions indicate that less than 10 crore people visit cinema halls in India, showing that it remains a luxury experience out of the reach of 94% of the population," the report said. Another PriceWaterhouseCoopers report predicted that admissions would reach 140 crore only in 2027, indicating a slow revival of growth.

The first quarter of 2024 also showed a slow showing of movie ticket sales, indicating that the sector is still limping back to its pre-pandemic glory. Movies with big stars did not produce the expected moolah. Hrithik Roshan and Deepika Padukone’s Fighter, Ajay Devgn’s Shaitaan and Maidan, Akshay Kumar and Tiger Shroff’s Bade Miya Chote Miya are some of the recent releases that have not lived up to box office expectations. 

"As per our reading, movie admissions are 30% lower than what they were in the January-March quarter of 2024, as compared to the same quarter in 2023," said Karan Taurani, senior vice president and research analyst at Elara Capital Plc. 

Only Fools Rush In? 

The pandemic has changed the rules of the game for movies. The audience requires a lot more ‘push’ to walk into the theatre to watch a movie. Bharti Dubey, a film critic and sector expert, says that the audience wants value for money, which the content is currently not providing. 

'The taste of the audience has changed since the pandemic. They have many more options now, which they can watch in their comfort. The audience goes to the theatres for the experience, the spectacle, and the music. The trailers for some of the new releases are not promising all that," she said. 

Sector reports also indicate that lethargy has seeped into all forms of movie watchers since the pandemic. According to industry discussions and reports, heavy cinema visitors, who typically watch 2-3 movies per month, have reduced their frequency to once a month. Light visitors who watch only a few movies a year have also shrunk, as per a Ficci report in 2022. 

In the last few years, the world of cinema has seen many superhits like Shah Rukh Khan’s Jawaan, Pathan, along with Rajamouli’s RRR, Allu Arjun’s Pushpa as well as Sunny Deol's Gadar 2. Added to that, international revenues are also adding to box office collections. Yet, there have been more misses than hits in the last few years—eating into the ‘habit’ of watching movies regularly. 

“A key trend noted in 2023 was that cinema-goers waited for movie reviews and only then took a call on whether to watch the film in a cinema, or wait for its OTT or television release. This made a very strong case for making films ‘worth it’ by providing an incomparable theatrical experience, and getting the marketing right,” adds EY and Ficci report. 

Dubey, too, adds that a family movie watching experience costs as much as Rs 2,000 at least — making them think and rethink. “Unless the content is good, people won’t enter a cinema hall,” she adds. 

Netflix 'n Chill Vs Popcorn And Movie?

Since time immemorial, people have been stepping into theatres across various occasions—be it dates, family outings, or college students bunking classes. There was also fear that a movie might stop playing on the screens if they do not 'catch it now’. OTT has taken this out of the equation. 

Not only is content easily available across the myriad of over-the-top  platforms and bundles—the time lag between a theatrical and digital release is barely a few weeks. As of 2023, as many as 97 million Indians have paid OTT subscriptions. Also, over 416 movies released on OTT platforms. Are they choosing to watch movies at home?

Experts do not believe that OTT has a very big role to play in the sluggishness among cinema-goers. 

“OTT is a threat but only to a certain extent. As compared to pre-pandemic time, ticket sales have gone down by 30-40%. Of this, only 15-20% is due to OTT. Content is not driving people to theatres. Once the content cycle changes, people will come back to the theatres,” said Taurani. 

Dubey agrees. “The charm of cinema has not faded away. Also, the OTT audience is different from theatre audiences.” 

It seems theatres are not losing their audience, individual movies are. The audience is now less forgiving, more demanding and experience-seeking. Will the big screens provide what they really want—entertainment, entertainment and entertainment. 

Katya Naidu is a senior business journalist who writes about equity markets, startups, energy, infrastructure, real estate and healthcare.

Disclaimer: The views expressed here are those of the author and do not necessarily represent the views of NDTV Profit or its editorial team.

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