• SPECIAL STORY • phenomenal drop in 2020 due to the pandemic . The pandemic impacted the content pipeline , halting film production and closure of cinemas . The production has restarted in some countries and the industry has adopted remote-work protocols where possible . The biggest shortterm risk seems to be consumers ' dwindling confidence in physical venues .
Before the impact of COVID-19 , the film industry was undergoing a huge transformation and the ongoing disruptions only accelerated the chaotic transformation well underway in movie production , distribution and consumption .
To explain it more lucidly , the theatres were already challenged by a shorter theatrical window and the changing consumer preference increasingly towards the SVoD players hastened the demise of the cinema screens across the globe .
The well-funded SVoD providers like Netflix , Amazon with significant content budgets completely shifted the power balance in the pandemic era and forced major movies in India to release on their respective platforms . The apparent depletion of choice in theatres , in contrast to the wealth of content put added pressure on admissions to the cinemas .
The cinema chains are trying to boost consumer confidence and improving consumer targeting through deployment of customer data and integrating technology which can deliver the touch points that cinemas have vis-a-vis the customers . The markets could see further consolidation amongst the cinema operators and this consolidation may deliver economies of scale for theatre operators .
But the immediate challenge lies with fewer films available for theatrical release and due to this the future of cinema business looks set for a long battle for 2021 .
The Influx and Proliferation of OTT
When the lockdown was imposed in March 2020 and the theatres were shut down , the streaming services emerged as the alternative distribution channel . This raised the hackles for the producers and filmmakers whose movies were scheduled to release in theatres . But it brought about an innovation in the industry and left the dynamics hanging between the producers , studios , streaming services and exhibitors and distributors .
Universal Pictures was the first to take the plunge and released ‘ Trolls World Tour ’, a sequel to ‘ Trolls ’ ( 2016 ) on Apple TV & YouTube and not in cinema halls . The movie received the biggest opening for Universal ' s digital title release and this gave producers the confidence the consumers are hungry for entertainment in their homes . In another major announcement Warner Media announced that its 2021 slate will have a simultaneous release in theatres and on its streaming service-HBO Max .
Estimated Losses for the Indian Film Industry in the Pandemic
The theatrical market in India is estimated to have lost 3,000 crore during the six months of the lockdown when the theatres have remained shut since March , The Hindi film industry accounts for around
2,000 crore .
Bollywood had revenues of 5000 crore in 2019 , while the first three quarters of the 2019 had brought in box office collections of 3,700-3,800 crores . Hits like action thriller ‘ War ’ ( 292.71 crore ) and ‘ Housefull 4 ’
TW-22
March-May 2021