India's cinema halls struggle with dwindling footfalls

India Today

19-06-2025

(NOTE: This article was originally published in the India Today issue dated June 23, 2025)Amidst the glitz and spectacle of the World Audio Visual & Entertainment Summit (WAVES), one topic weighed on the minds of most film industry stakeholders—the current crisis in the theatre business. 'I have always believed that India has too few theatres, given the size of the country and [number of] people,' actor Aamir Khan said at a session. 'Our biggest theatre hits have had footfalls of 30-35 million. That's 2 per cent of our population in what is a cinema-loving country.' Seated next to him was Ajay Bijli, founder of PVR Cinemas and managing director of country's biggest multiplex chain, PVR INOX Ltd. Bijli replied in jest, 'Main office jaata hoon [I better head to office to get work done].'advertisementThe world's most populous country has just about 9,000 screens, a number that has been steadily declining, largely due to the closure of single-screen cinemas. The figure implies that there are roughly 7-8 screens per million people. More than half of these screens are concentrated in southern territories, predominantly in Andhra Pradesh, Tamil Nadu and Telangana, followed by Karnataka and Kerala. Even as new box office benchmarks have been set post-pandemic with releases like Pathaan, Jawan, Animal, Stree 2 and Pushpa–Chapter 2–The Rule, the hard reality is that footfalls have still not matched up to 2019 levels. As Aamir called for more screens in 'vast tracts where there are no cinemas', Bijli reminded us that existing screens were struggling to put bums on the existing 4 million seats. 'Consistency of content that engages is important, as the consumer is critical,' Bijli said. 'We need to start cinemas carefully...in pockets where they are not available.'advertisement
The latest EY report on India's media and entertainment sector states the need for low-priced theatres in Tier III and IV markets alongside growth in 'mass-themed films'. Five months into 2025, there has been only one that fits the bill—Chhaava, a period action drama on Maratha ruler Chhatrapati Sambhaji Maharaj, which collected Rs 530 crore, a significant chunk of it coming from Maharashtra. Bollywood's sluggish start to the year cannot be attributed to just fewer big releases in the first half. Mid-budget films have also struggled to make an impact, with just a few exceptions such as Kesari-Chapter 2, Raid 2 and Jatt.
At Cinepolis India, which has 186 of its 430 screens in Tier II and III centres, the situation is improving, but with a caveat. 'While overall attendance figures have recovered to near pre-Covid levels—85 per cent of 2019 level in 2024—this is primarily due to the increase in screen count rather than per-screen productivity, which is down 25-30 per cent,' says Devang Sampat, the managing director of the multiplex group. 'This disparity highlights the underlying challenges the exhibition sector faces. Ultimately, it boils down to the content the industry is churning out.' The chain's expansion strategy has seen it open cinemas in Kozhikode, Bhopal, Jaipur, Rajkot and Kannur, with plans to set up shop in Jhansi, Pondicherry and Jodhpur in a few years.advertisementNORTH-SOUTH DIVIDE
Talk to any exhibitor and the conversation ultimately boils down to the lack of a steady stream of compelling films that can lure the audiences back into cinema halls. 'Nobody makes movies for the masses anymore,' says Yusuf Shaikh, whose family operates five single screeners in Gujarat that are just about breaking even. 'We are not ready to understand who our audience is or [have] ignored who they are.' An 'ABCD film', one that connects in all geographic centres, is a rarity, he says. Instead, he praises filmmakers in the South for working out 'their target audience and sale and recovery model' as well as marketing, which has resulted in a few films becoming hits even in the Hindi belt. 'In the South, actors have their own fan clubs. Even the music and trailer launch are events for them,' he adds.advertisementThere's no overlooking the fact that the South is way above the rest of India when it comes to big screen viewing. As per cinemaprofile.com, of the 6,877 theatres in India, 54 per cent are in the five southern states. Add Maharashtra, and the figure rises to 70 per cent. Screen density in the South too is much higher than the national average. Ashish Pandey, currently head, programming and strategic initiatives, at MovieMax, has been in the film distribution business for over two decades and has some understanding on why the likes of Andhra, Telangana and Tamil Nadu dominate. 'In the South, there's a culture of going to the cinemas. It's not like you are going for the sake of entertainment alone. It's also not considered demeaning to go to the cinemas. So, there's no hesitation,' he says. 'A regular audience comes regardless of which film is released. There's penetration of cinemas even in smaller towns.'advertisement
But all is not hunky-dory even in the hero-worshipping South. If there's a Tourist Family (Tamil) or Thudarum or Alappuzha Gymkhana (both Malayalam) which succeeds, there's also a Kamal Haasan-Mani Ratnam's Thug Life, which failed to live up to the hype. Sunil Narang of Asian Cinemas feels some course correction is needed, especially when it comes to aspects such as the theatre-to-streaming release window. In the South, it's just 28 days, compared to 56 days in the Hindi belt. Steep ticket prices as well as those for food and beverage, he feels, are also deterring audiences. 'How can we have more screens when existing screens are not running?' he laments. 'Where are the movies? Where are the numbers? How will the theatres run?' As many as 30-40 single-screen cinemas in the South have closed in the past six months, he says.
THE BIG PICTUREadvertisementIf India wants to level up to the markets in China and the United States, what it needs are films that pique audience interest enough for them to make the trip. 'There isn't a regular supply of tentpole pictures or big films. They come once every three months; the rest of the time is when we face a downturn,' says Pandey, whose MovieMax is looking to expand from 80 to 100 screens by the end of the year. 'Once we have a stronger content pipeline, the expectation is that those footfalls will come back. Because people are coming to the cinemas even to watch re-releases and smaller, mid-budget fare like Munjya and 12th Fail.'But even these pleasant surprises are too few and far between. Bijli summarises the cinema theatre business post-pandemic as akin to 'feast and famine', wherein a film does exceedingly well only to be followed by a long dry spell where nothing clicks. Yet, he also realises that new cinemas need to come up in smaller centres as opposed to the big cities. Currently, 372 of PVR INOX's 1,743 screens are located in 66 Tier II and Tier III cities and come with a cumulative seating capacity of 80,947. In 2018, the multiplex giant launched the 'franchise owned, company operated' (FOCO) model to take its presence beyond the metros. Adopting an 'asset-light strategy', FOCO has franchise partners who own the property but with PVR INOX handling the design, operations and customer experience. Under this, 42 screens are operating across 12 locations, with 35 more planned in nine new locations, including Shillong, Gangtok and Siliguri.Meanwhile, Shaikh is hoping to revolutionise the film exhibition market with Janta Cinemas, a business idea that emerged from a simple premise: 'Grahak khada hai, dukaan hi nahin hai [(The customer is there. But there's no shop in sight)'. He has tied up with the state governments of Assam and Tripura to convert vacant town halls and panchayat houses into 300-seater cinema spaces. While the morning and afternoon hours are devoted to edutainment, the evenings are reserved for films. Tickets are priced at Rs 99 and Shaikh throws in a chai and samosa too.'What this country needs is cinema halls for the masses. I am planning 10,000 screens in the next two years,' he boasts, adding that he is already communicating with the governments of Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra and Delhi to launch more Janta properties. 'I am converting the pirate audience to the ticketed audience.' The ultimate endeavour, he hopes, is that there's a steady maintenance of average collections through modest outlets, which, in turn, helps build a loyal audience. It may not have swanky recliner seats or fancy food and beverage offerings, but what it can ensure is that the show goes on. A houseful one at that.Subscribe to India Today Magazine