It will take 2-3 more quarters for footfalls at multiplexes to return to pre-Covid level: PVR

It will take another two or three quarters for the theatre-going habit to return fully and drive up multiplex footfalls to pre-Covid levels, according to Joint Managing Director Sanjeev Kumar Bijli of PVR Limited, even as multiplexes have been fully operational for nearly 10 months now.  

PVR, the largest multiplex chain in the country, has had 83.8 million footfalls between January and September 2022. That puts their footfalls at about 68.4 per cent of what it was during the corresponding period of 2019.  

“We’ve only been properly open for less than 8-9 months. For that theatre-going habit to fully come back it will take another two-three quarters…Getting 75 per cent footfalls back is a good indication that people are coming back to the cinemas given that they weren’t coming for two years,” Bijli told Business Today.  

The second largest multiplex chain INOX Leisure, which is in the midst of a merger with PVR, has seen footfalls of 41 million during the nine-month period from January 2022, which is 75.6 per cent of its pre-Covid level. Footfalls at Cinepolis India are about 20 per cent lower than pre-pandemic levels, its CEO Devang Sampat had told Business Today earlier. 

The Covid pandemic, which necessitated theatres to open and shut in subsequent waves for extended periods of time, ate into the revenues of the exhibition industry. Meanwhile, OTT players, which got a fillip because of the pandemic, offered viewers a barrage of content even for multiple viewing at a fraction of movie-ticket prices. 

Bijli said PVR is experimenting with ticket pricing, F&B pricing, theatre formats and technology as well as loyalty programmes to draw the audience back to theatres. “We are giving out vouchers to customers which can be redeemed for tickets or food & beverage. We have launched subscription plans for movie passes as a pilot in Pune and Chandigarh,” he said. 

The multiplex chain, which is the midst of a merger with one-time rival and second largest chain INOX Leisure, recently introduced ICE Immersive technology in its premium screens. The merger is expected to be completed by the end of the current financial year of 2022-23, a year after the deal to bring the erstwhile rivals together was first announced. Until then, the two operate as separate exhibition companies and continue to expand in different locations.

But cutting ticket prices alone cannot get the audience back to the theatres, he adds. “We still have affordable rates of Rs 240-250 across the country and time slots, which we feel is optimal. It’s only grown in line with inflation ever since we reopened post-pandemic.” Adding that Drishyam 2, Bhool Bhulaiyaa 2, Kantara and Brahmastra were all priced at Rs 240-250 in the normal format across the country and did brisk business, he said: “With Goodbye, we experimented with Rs 160 tickets across the country.  Even at a lower price, people didn’t go. Ticket pricing is not a deterrent. It’s really about the content now.”

A recent note from brokerage firm Nuvama Wealth Management said: “After a flop Q2, Q3 started off weak for multiplexes due to lack of quality content, but the second half performed exceptionally well. Movies like Drishyam 2 and Avatar: The Way Of Water were major catalysts…With a strong content pipeline in place, we expect footfalls to remain healthy in FY24.” But in the January-March quarter of FY23, the impact of a social media boycott on Pathaan needs to be seen, it added.

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