PVR and Inox, the two largest movie theatre operators in India, have agreed to merge. The combined company will have a 50% share of screens in Indian multiplexes and 18% of all screens. While existing screens will continue under their brands, the combined company will operate as PVR-INOX. The merger comes after the cinema industry was severely impacted by the pandemic and increased popularity of streaming services. The larger combined company will have more negotiating power with film producers over revenue sharing, show schedules, and window between theatre and streaming releases. PVR and Inox expect the merger will enable faster scaling and solidify their leadership position in the growing cinema sector in India.
PVR and Inox, the two largest movie theatre operators in India, have agreed to merge. The combined company will have a 50% share of screens in Indian multiplexes and 18% of all screens. While existing screens will continue under their brands, the combined company will operate as PVR-INOX. The merger comes after the cinema industry was severely impacted by the pandemic and increased popularity of streaming services. The larger combined company will have more negotiating power with film producers over revenue sharing, show schedules, and window between theatre and streaming releases. PVR and Inox expect the merger will enable faster scaling and solidify their leadership position in the growing cinema sector in India.
PVR and Inox, the two largest movie theatre operators in India, have agreed to merge. The combined company will have a 50% share of screens in Indian multiplexes and 18% of all screens. While existing screens will continue under their brands, the combined company will operate as PVR-INOX. The merger comes after the cinema industry was severely impacted by the pandemic and increased popularity of streaming services. The larger combined company will have more negotiating power with film producers over revenue sharing, show schedules, and window between theatre and streaming releases. PVR and Inox expect the merger will enable faster scaling and solidify their leadership position in the growing cinema sector in India.
PVR and Inox, the two largest movie theatre operators in India, have agreed to merge. The combined company will have a 50% share of screens in Indian multiplexes and 18% of all screens. While existing screens will continue under their brands, the combined company will operate as PVR-INOX. The merger comes after the cinema industry was severely impacted by the pandemic and increased popularity of streaming services. The larger combined company will have more negotiating power with film producers over revenue sharing, show schedules, and window between theatre and streaming releases. PVR and Inox expect the merger will enable faster scaling and solidify their leadership position in the growing cinema sector in India.
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PVR and Inox, the two biggest movie theatre operators in the nation, have decided to merge,
creating a monolithic company with a 50% screen share in Indian multiplexes and an 18% percent of all screens. Existing screens will continue to be operated under their separate brand identities while the combined company will operate as PVR-INOX.
During the pandemic, the exhibition industry was severely damaged. A variety of cinemas and theatres have been forced to close, festivals have been postponed or canceled, and movie releases have been delayed indefinitely or for a longer period of time. As a result of movie theatres and cinemas closing, the global box office has decreased by billions of dollars. After being affected by the pandemic and the popularity of OTT platforms, this cooperation will bring premium cinema to consumers in tier-2 and tier-3 markets.
Analysts predicted that movie theatres and streaming services would need one another to exist even as they continue to compete for customers. According to Vivek Menon, founding partner at Indian media and entertainment fund NV Capital, OTT operators prefer big-budget films to open in cinemas before they are broadcast on their platforms because it can somewhat reduce their marketing expenditures. When theatres were closed due to the pandemic, a number of films were "digital-first" and released only on streaming services.
The combination might persuade more makers of low-budget movies to look to streaming services rather than multiplexes for screen time. These filmmakers would prefer to sell to a streaming service since they can receive more money for their work there. It is not financially feasible for smaller-budget films with fresh performers and provocative content to be released in cinemas like the amalgamated INOX and PVR, which cost between 10 million and 20 million Indian rupees. Big-budget films are still in theatres, while smaller and mid-budget films are shifting to streaming services. They receive a better viewership in OTT. However, a lot of industry professionals think that theatre releases will continue. Additionally, OTT direct release will just be a passing trend. About 25% of the money that theatres make comes from the sales of food and drink. And they've begun to emphasize it more and more. Even more, there are various snacks available in F&B areas in movie theatre complexes in addition to popcorn and soft drinks.
Due to the fact that box office revenues at theatres are not capped, multiplexes typically hold the upper hand when negotiating a revenue share arrangement with movie producers. Because of its size, the soon-to-be combined INOX-PVR cineplex will have more negotiating power with content creators when it comes to revenue share agreements, show schedules, and even the window between theatre and OTT distribution.
PVR and Inox are expecting that working together will enable them to scale up more quickly and solidify their leadership position in this underrepresented but expanding sector. Additional collaborations of this type are anticipated to hit the market soon if the agreement works as planned. This will make it possible for an industry that focuses on synergizing to lower operational expenses and increase profitability to become more systematized and organized.
