Why multiplexes are synonymous with Hollywood, Bollywood films and single screen to regional cinema?

India makes more movies than any other country in the world. The count was 2,000 in 2017, films being the largest source of entertainment in the country. While there is no dearth of content, the fragmented Indian film economy does not allow equal exposure to all movies. While multiplexes depend on Hollywood and Bollywood films, single screens dominate the regional film market.

For the top 4 multiplex chains, 70 percent of box office collections are from Hindi and English (international) content. These multiplex chains have traditionally built their business model focusing on metros and Tier-I cities, where the demand for Hindi and English content is high.

On the other hand, regional films are more mass-centric and find an easy and cheaper distribution medium via single screens.

Overall, the multiplex segment has adopted a de-risked operating model with increased adoption of Hollywood content and lesser dependence on Indian content.

However, Mukta Arts MD, Rahul Puri says, “It all depends on the clientele the multiplexes are catering to. Multiplexes identify what the clientele is looking for now if the clientele is more inclined to watching Hollywood films than regional cinema obviously multiplexes will play those films.”

“But when Baahubali came to the theatres that wasn’t the scenario and it was the same with Sairat. Most of the multiplexes ran the film. Hence, it is not the function of multiplexes choosing to adopt a strategy, it depends more on what people want that come to the multiplexes and what content they are looking for,” he added.

The success of these films signal that regional films are moving to the mainstream. Films made in Marathi, Punjabi, and Bengali languages are increasingly wooing mainstream audiences, aided by funding from corporate studios rushing to cash in on untapped markets.

However, apart from the south and Marathi film industry, not all regional cinema have found success and it still grapples with some basic issues. And one hurdle that is coming in the way of the growing regional film market is low screen density in India.

There were about 2,000 releases last year and with 9,530 screens, it creates a tremendous pressure on each screen resulting in untapped market potential.

Experts are of the opinion that an increase in screen density and higher access to cinemas across the country could potentially enhance domestic box office collections.

India is also witnessing a rising adoption of Hollywood films particularly in the regional markets where they find an audience in both locally dubbed language and English. However, not all cinemas in India have changed from E-cinema to D-cinema format and Hollywood has a policy of not releasing their films in E-cinemas.