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BW Businessworld

Single Screen Theatres Hit By Demonetisation

The entertainment industry has seen a huge fall in collections or drop in sales in the wake of demonetisation

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The entertainment industry has seen a huge fall in collections or drop in sales in the wake of demonetisation. It is estimated that it could be anywhere around 50 per cent to 70 per cent dip in sales due to the banning of Rs 500 and Rs 1,000 notes which are not legal tender anymore.

The film producers have postponed the release of their films. Since marketing of some movies have already been scheduled, their producers may have to go in with the flow and release the films as per their schedule. Aamir Khan whose Dangal is slated to be released around Christmas has said that he is ready to take loss of revenues for bigger reforms of the nation. This goes on to prove that the film industry is expecting losses in the near future.

The sudden move of demonetisation has affected the box office sales of Rock On-2. The film maybe not be a big hit but was expected to earn Rs 4-5 crore on the first day; it could only manage to earn Rs 2 crore which is much below expectations.

Film distributors are also feeling the heat of demonetisation. There is almost a 75 per cent drop in footfalls across theatres because people don’t have the cash and not everyone knows how to use other mode of payments, especially in small towns.

The experts feel that digital payment modes like Paytm, Mobikwik, Oxygen can be of some assistance but mostly in major cities. Paytm is already offering 30 per cent discounts on tickets as well as food and beverages. Cinemas in Tier III and Tier IV cities where most the theatres are still single screen have decided to accept cards for payment. Currently, multiplex operators are selling 40-60 per cent of their tickets either online or by credit or debit cards. Cinepolis is waiving off the convenience fee on all online transactions for at least four weeks. They are also giving up to 35 per cent discount on food & beverages combos and 20 per cent off on first transactions on the mobile app.

Well, it’s not only Bollywood but the regional cnema too is soon going to be affected as it makes movies usually with unaccounted money. The Tamil Telegu , Malyalam and Kannada film industry will soon be severally impacted by the move.

Besides this, the Marathi, Bhojpuri, Bangla and Punjabi film industry will also be severely affected by the move as most of the movies are made with cash and the revenues are also received in cash due to single theatres.

However, the Bollywood of late has become an industry and is aptly run by the international studios wherein the cash component is miniscule and investment and returns are all accounted for.

The demonetisation exercise will change the colour of money from black to white and ensure that India takes positive steps to become a leader in the booming economy of the world.

The author is co-founder and director of Tandav Film Entertainment

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

Savitaraj Hiremath

The author is co-founder and director of Tandav Film Entertainment

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