NEW DELHI, INDIA: People wearing face masks as a precaution against coronavirus outside PVR Plaza ... [+]
Soon after major films - Amitabh Bachchan's Gulabo Sitabo and Vidya Balan's Shakuntala Devi - were confirmed for an exclusive digital release, multiplex chains PVR and INOX issued statements condemning the development. While PVR expressed its "disappointment" in producers who decided to take the digital-only route, INOX expressed 'extreme displeasure' over the development. On the other hand, the Producers' Guild of India was quick to respond and labelled the statements as "abrasive and unconstructive messaging (sic)". However, given the complete scenario, it is neither a major profit for producers, nor is it a significant loss for theatre-owners.
Why, do you ask? Well, for starters, the theatres have been shut down since early March. That means no revenue whatsoever in past two months. So whether a film releases or not, does not make much of a difference. Whereas, when producers decide to take the digital-only route, they are signing up for losses, not gains. It will be loss of revenue from theatrical footfalls. Given that films featuring bankable stars usually attracts a good number of audiences at last in the first three days, an exclusively digital release plan sends the producer at loss of revenue right at the start. Perhaps, it is because of this very calculation that makers of Akshay Kumar-starrer Sooryavanshi, Kabir Khan's '83 headlined by Ranveer Singh and Varun Dhawan's Coolie No 1 have postponed their releases instead of taking the digital-only route.
Both Akshay Kumar (L) and Ranveer Singh (R) were supposed to have their films - Sooryavanshi and 83 ... [+]
Taran Adarsh, trade analyst, said, "In normal course of business, digital and satellite rights are additional revenue for producers. This is apart from the theatrical revenue. Theatres are anyways at loss, because they have remained closed since March. We cannot call it a loss for theatre-owners."
A normal and traditional theatrical release is also followed by digital release and producers nowadays sell satellite rights as well as digital rights, apart from theatrical release. For example, Irrfan Khan's last film Angrezi Medium released in theatres but had to be pulled down and was soon released online.
Mohan Umrotkar, CEO Carnival Cinemas, said that the industry has already lost "about Rs 1200 crore in terms of box office alone (exclusive of food and bevarage sales at the multiplexes). Every month of lockdown, we are losing Rs 200 crore." However, the blame for these losses cannot be pinned down on films taking to digital-only release instead of a theatrical release. The theatre-owners stand at a loss till the time theatres reopen, even if all films wait for theatrical releases.
