Indian Cinema Industry Suffering During Covid Situation

During this Covid-19 situation, Indian Hindi cinema has faced huge losses as well as closed thousand plus cinema complexes permanently and postponed hundred plus hits movies released. Some film projects shout down, while many people lost their jobs not only related to film’s production but also film’s supply chain. 

According to a 2020 report from accounting firm Ernst & Young, India had around 9,527 screens out of which there were around 6,327 single-screen theaters and 3,200 multiplexes. Last year, around 1,000 screens shut down permanently.

This is the one industry which is already dealing with losses and no one knows when they can recover from the loss.       

On March, 2020Hindustan Times reported that Bollywood looking at 1300 corer rupees’ losses due to Covid-19 lockdown. Even they revealed that Bollywood film’s exported to ‘eat each other’s business’ after situation will be normal and film will start to releases theatrically. 

An entire Indian film industry produces over 1600 to 1800 films yearly in many languages. Around 200 to 250 films are produces in Hindi language which we mostly known as Bollywood.

Bollywood film industry’s yearly earning approximately over 30 billion Indian rupees which have currently counting losses due to Covid-19 pandemic situation. It also effects to entire industry supply chain which was related with film’s making, production to film release.

As well as, like Bollywood Kannada, Tamil and Telugu languages film industry have been dealing with major losses. Because most of the renowned production houses and cinema corporations are stablished in southern part of India.  

CEO of PVR Cinemas, Gautam Dutta Said that "With thousands of screens countrywide forced to close down, and many employees, not just of cinemas, but even their supply chains and other stakeholders facing personal hardship. It is a tough situation".

Recently the Indian cinema exhibition industry estimated that, in 2020-21, the film industry had lost theatrical revenues of close to 120 billion rupees.

On the other hand, according to the Federation of Western India Cine Employees, over 250,000 workers, including entertainers, makeup artists, set designers, carpenters and backstage dancers have also been affected by the pandemic. 

It is also quite obvious that small artiste and workers in the industry have been effected miserably. Some film’s production shooting is going on. But, it’s not relay on any certain position.

In the world, India’s Hindi entertainment industry is one of the biggest position which is staring to count revenue loss of upwards of 1300 crore rupees. Because several big budget films have been forced to postpone releases on local and also international market because of international impact of Covid-19 pandemic. Other markets like the UAE, United States of America, United Kingdom, Australia, and Fiji account for approximately 30 to 40% of a film’s overall box office collection.

 Trade analyst Atul Mohan said, “In the last two years, the industry made around Rs 850-900 crore in net collections in the quarter April to June. We’re definitely losing that amount.”

But, once the pandemic over, those movies will theatrically release and technically recover costs. Though it will be depending on several factors, including the economic condition and theatrical collection.  

However, currently several blockbusters film production released their films in over-the-top (OTT) platforms or Digital media.

As we know, during this lockdown, people now stack on home and streaming more on Digital media platforms. So, those platforms became people’s new big screen.    

Film producer Sai Krishna said that, "Major production houses are turning to OTT platforms for their new releases. We have to take the giant leap and adapt. Directors, producers and even actors realize that this platform is going to be increasingly relevant." 

Recently, in India people have been more attracted towards Digital media. Because of easy access to smartphone and better network or Digital connectivity have increased rapidly which has also made digital platforms subscription model popular.

As well as low cost and efficient mobile recharge packages, along with good internet connectivity, have enabled both rural and urban populations to consume video content at a rapid rate.

According to consultancy firm Price water house Coopers, 2019 to 2014 India’s streaming market is expected to grow 31% with 2.7 billion dollar revenues.

However, Indian film enthusiasts are still waiting for the cinematic experience.