By Vinod Mirani The Covid-19 lockdowns that lasted over a year have had a negative effect on the cinema industry.Cinemas in many states are restricted from operating under the regulations and conditions set by the state governments.
The most stringent regulation for many cinema theatre managers in many states is to only sell 50% of their capacity.
Since the rise of multiplexes, cinemas have been run according to the management’s terms.
Distributors and film producers have little to no control over how films are displayed.
The trend was to release a film according to its intended audience.
This meant that a film was released in every major metropolis at the same cinema, but the release was spread to several screens around the city to appeal to local audiences.
The release plan, also known as cinema chain booking, was available to families, young people, and other audiences.
Another type of chain was used for fantasy and action films.These chains were designed to cater to the working class.
The new cinema, in which action was part of a normal movie, was described as mass cinema with universal appeal.The masses filled the stalls, while the gentry occupied balconies.
The multiplexes followed.When admission rates were set, the masses were ignored and driven away.It didn’t matter that the masses were compulsive cine-goers, while the gentry only occasionally visited cinemas.Many film lovers, I’ve spoken to, don’t think about going to the cinema the same way they wouldn’t fly.
The multiplex model of business is not the only reason for driving out the masses.It is equally to blame for this the lopsided policies of various state governments.
The multiplex operators were offered various sops to promote the culture.These included an entertainment tax holiday for the first years.
However, the tax slabs on the older single screens remained the exact same: high.
The laws required that cinemas obtain as many as 22 licenses.
These licences had to be renewed each year.This was a sign of corruption.
To top it all, a cinema theater was not allowed to close its doors, no matter how much loss it suffered.The single screens were heavily loaded with dice.
Many of these cinemas are still standing, but they are in disrepair.
The masses have no other choice.
Many film lovers are left out by the prohibitively high admission fees.Despite the fact that the film fraternity has always promoted the idea of seeing films on the big screen, this is still a problem.
Cinemas added a certain snob appeal to movie-going.
It wasn’t enough to have high-priced cinemas.
Some screens were also classified in such a way that they were only meant for the very wealthy, the royalty.It seemed that a bad movie felt better if you could boast about how many times you had seen it on such and such a screen for Rs 1,200 or Rs 1,500 per head.
Multiplexing admission rates was not a smart business strategy.Those who wanted to see a film knew that the rates would drop to the normal levels by week two.Now, one doesn’t have to wait or waste money even if the rates drop.
A film that is released in a cinema will be available on an OTT platform within a few days.
(Many patrons retreated from the screenings in Delhi of “Sooryavanshi” because they saw tickets that should be priced at Rs 250 and Rs 650, respectively.
The times are changing.
Multiplex chains, which were the main revenue source for filmmakers, are no more the key.They receive their real, lump-sum money through OTT platforms.You can still make a film, and also make profits if you choose to release it on OTT.
Strangely, multiplex managements still don’t see the value in being part of the film fraternity.This is a strange phenomenon that has been the norm since the beginning of the film industry.Cinemas, distributors, and filmmakers all considered themselves to be part of the same fraternity.
Without the other, there is no complete film industry.
We like to believe that filmmaking and films are all about Mumbai.It isn’t true.The centre of the Hindi film industry is in the city.
There are more people interested in the country than ever before.The south is home to the largest movie-making industries, both in terms of absolute numbers and turnover/revenues.
The Telugu film industry produces the most films, between 160 and 175 per year.It is also the largest, despite being a small region that is divided between two states, Andhra Pradesh (now Telangana), it still delivers multi-crore hits every year.
Filmmakers boast of record box-office numbers for obvious reasons.The Andhra Pradesh government was probably influenced by the discrepancies in box-office figures and GST returns for films that were shown in the media.
This belief led to the Andhra Pradesh government passing a Bill in Assembly this week that will route all ticket bookings for cinema theatres through a state-owned portal, and not at the ticket windows in the theatres.
The Andhra Pradesh Cinemas Regulations (Amendment), Act 2021 stipulates that bookings must be made through the portal operated by the state-run Film and Theatre Development Corporation.
The state would control the admission rates and show schedules.Through the Reserve Bank of India gateway, the revenue generated would be transferred daily to the cinemas.
The amended law also restricts daily screenings of films to a maximum of four shows.This is in contrast to the six or seven screenings that a cinema theater normally manages.
The state government discovered that the admission rates were increased to Rs 500 to Rs 1000 in the name of benefit programs.It felt that the GST collections didn’t quite match the box-office collection as they should.
This is not the first time that a state has decided how to regulate admissions to cinemas.West Bengal did the exact same thing during communist rule.
The state government imposed that the lowest ticket price must be 95 paise (that’s, less than one rupee), with the maximum allowed price being Rs 4.
Similar laws are in Tamil Nadu.Tickets for front rows must be priced at Rs.62.74, with a maximum of Rs.62.74. 162.14.It’s no surprise then that Tamil Nadu does not consider film watching a luxury.
This action by the Andhra Pradesh government is not good news for cinema chains, especially if it is followed by other state governments.
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