Pointing out that nearly 20 markets globally have allowed resumption of cinemas with the requisite safety protocols, the Multiplex Association of India (MAI) has urged the government to allow operation in non-containment zones. In the latest guidelines issued by the Ministry of Home Affairs, multiplex chains have not been given permission to operate cinemas amid rising Covid-19 cases in the country.

Against this backdrop, leading multiplex chains such as PVR and Inox Leisure have taken to Twitter to announce that they are gearing up to release two big-ticket flicks – Rohit Shetty’s Sooryavansham on Diwali and Kabir Khan’s 83 on Christmas this year. Carnival Motion Pictures has also said it plans to release its film Mere Desh Ki Dharti on August 14 subject to government permissions. These announcements came days after Disney + Hotstar announced the release of seven Bollywood movies on the platform.

Analysts believe that while the trend of medium- and small-budget movies opting for an OTT release may accelerate in the short term, some producers of big-budget flicks will look to release them on the big screen. However, concerns abound about the lack of availability of content for the box office in the later part of the year.

Paucity of content

Jehil Thakkar, Partner, Deloitte India, said: “With uncertainty over when the exhibition window will re-open, more producers with finished projects will look at releasing them on the OTT platforms if they get the right price for their content. But there will still be a few who will wait. Nearly 70 per cent of the OTT content consumption happens on smartphones and large budget movies are tailor-made for big screen release.”

While some States have allowed content makers to begin production with restrictions, production activity for films has not yet picked up in a significant manner due to rising Covid-19 cases and concerns about the safety of the cast and crew.

“This may lead to issues with content availability at the box office,” Thakkar added

Rakesh Jariwala, Partner-EY India, said concerns on “carrying cost of inventory” may lead to short-term measures such as releasing movies on OTT platforms. “However, longer term, the trend towards creating screen-specific content will be further augmented. Experience-based movies will continue to aim at the theatrical window as their primary release and revenue opportunity,” he added.

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