As various state governments imposed temporary shutdown of film theatres to contain the spread of novel coronavirus that has affected more than 100 people in India, the film exhibition industry may be staring at an estimated revenue loss of anywhere between Rs 5,800 crore and Rs 7,800 crore in a month, according to a report by Care Ratings. (The number has been reached assuming a temporary shutdown of all film theatres across the country.)
Major markets like Maharashtra, New Delhi and Bengaluru that draw considerable traffic to theatres have shut down cinema halls with most states extending the ban till the end of the month. Tamil Nadu too has issued closure orders for theatres in 16 districts bordering Kerala and Karnataka.
Of the total revenue loss of Rs 5,800-Rs 7,800 crore, film exhibitors will lose Rs 3,500-Rs 4,500 crore in revenue generated from ticket sales (including GST loss of an estimated Rs 800-Rs 1,000 crore) per month, loss of Rs 1,500-Rs 1,800 crore from sale of food and beverages every month and a hit of about Rs’900-Rs’100 crore fetched from advertising per month, analysts said in the report.
“Key sectors that advertise in cinemas such as automobiles, FMCG, gems and jewellery, telecom, banking and retail have already lowered their spends in recent months of FY20 amidst slow growth in business,” analysts Madan Sabnavis and Vahishta M Unwalla said. As release dates of movies are being pushed back, films slated to be released in the next three-four weeks will also be delayed. “The ripple effect has been created” and film exhibitors’ revenues for the last quarter of FY20 will capture the impact, the analysts added.
Makers of Akshay Kumar’s Sooryavanshi has postponed the release of the movie indefinitely. The film was initially slated for a March 24 release. Separately, shooting for film, television and web series has been stalled till March 31. India has about eight screens per million population, with about 200-500 seats per screen.