INOX-PVR mammoth entity leaves small filmmakers, producers worried

The recent announcement of top multiplex chain PVR Cinemas merging with rival INOX Leisure Ltd has producers and film makers worried, as they fear that the merger between the two multiplexes, which would account to almost 50 per cent of India’s total multiplex share, will have major control over the decisions of the film industry and its budget.

Producers reportedly fear that the merged entity, PVR INOX Ltd, will now have the power to decide the revenue share, show timings, and even when the movie will be released on OTT platforms. The price of tickets is also expected to rise, if the merged company decides to create luxury cinema halls, said a report in Mint.

Also read: PVR-Inox: OTT threat, post-COVID dynamics drive multiplex consolidation

Small-budget filmmakers who already have a tough time getting their movies released are particularly worried about the impending rise of a multiplex near-monopoly. Theatrical release may become more unattainable for them, as multiplexes may demand high rates for their trailers, the Mint report added.

After making it big in north India, PVR and INOX are slowly penetrating into South India, which is largely dominated by single-screen cinemas.

PVR and INOX announced their merger on March 27, after the board of directors of PVR Ltd and INOX Leisure Ltd approved an all-stock amalgamation of INOX with PVR.

PVR currently has 871 screens across 181 places in 73 cities, while INOX has 675 screens across 160 halls in 72 cities. The combined entity will become the largest film exhibition company in India with 1,546 screens across 341 properties across 109 cities.