Unlock 3.0: Multiplexes ready, theatres not

Resuming operations with a 25 per cent cap on occupancy makes no business sense, say owners of single-screen cinemas

Multiplexes and standalone theatres are at odds over the proposed reopening of cinemas with 25 per cent occupancy.

The central and state governments are talking about new norms to allow reopening of cinemas in the first week of August. Producers and exhibitors Metrolife spoke to say they are not for resumption of operations in the current circumstances.

Ravi Kottarakara, secretary, Film Federation of India and secretary, South Indian Film Chamber of Commerce, says multiplex associations are pressuring the government for permission to allow operations. “Single-screen theatres have not decided to reopen,” he told Metrolife.

Multiplexes and standalone theatres function differently. While the former comprises a group or company that has taken space on lease, the latter involves individual businessmen who have bought land and built their own theatres. “The ethos and culture of the film industry is represented by standalone theatres,” he says.

Kottarakara says that there were at least 85 films running across the country when the theatres were abruptly shut down when the first lockdown kicked in on March 24. “We had to stop operations and because of that stoppage, the Indian film industry is estimated to have lost about Rs 400 crore or more since the shutdown was announced on March 24,” says Ravi. Bollywood estimates it has lost Rs 1,000 crore in the last four months. “The theatres have shut down but they continue to pay electricity and water bills, besides property tax. We are liable to pay only if we use these services but we have not used anything, so why should we pay? We also don’t want to risk opening till we are sure the pandemic is controlled and it is safe,” says Kottarakara.

Reports suggest that multiplex chains are likely to reduce ticket rates to bring audiences back. Some films in Kannada like Yuvaratna, Roberrt, KGF will only have a theatrical release. In Hindi, films like Sooryavanshi, Coolie No 1, 83 and Master in Tamil will release in the theatre.

Steady expense

S T Anand, owner of G T Mall on Magadi Road and owner of Prasanna theatre started in 1974, says producers are reluctant to release their films with the 25 per cent capacity norm in force.

“Which producer will release a big budget film for a small audience? There’s also a notion that air-conditioned spaces are not safe, and this scares people away from theatres,” explains Anand.

He says he has lost about Rs 1.5 crore because of the lockdown. “If the government is reducing the occupancy to just 25 per cent, they should also bring down electricity and water charges and property tax. There’s no income but our expenditure remains the same,” he says. He believes theatres should be opened only after a vaccine is found and it is safe for people to go out.

Preparation time

Rockline Venkatesh, owner of a cinema with four screens, feels the government must wait and watch. “A few states may have opened their theatres. We should see how they function and what challenges they face. We need extensive preparation. No producer is willing to risk releasing big-budget films,” he cautions.

D R Jayaraj, president of the Karnataka Film Chamber of Commerce, says producers would rather wait.

M Narasimalu, secretary of the Karnataka Film Chamber of Commerce, adds producers and distributors have to come to an agreement before anything moves.

“Everybody is financially burdened and nobody wants to burn their fingers anymore,” he observes, adding that restricted seating does not make sense to the trade. K V Chandrashekar, president of the Karnataka Film Exhibitors Association, says the annual cost of maintaining the 650 theatres in Karnataka is about Rs 110 crore. “We have been paying from our pockets ever since the lockdown was announced. We continue to pay the employees as well,” he says.

What film bodies are seeking

A relief package from the govt.

Auto renewal of theatre licences for a year with no additional fees or procedure.

Reduction of property tax by 50 per cent. Andhra Pradesh has already announced a rebate.

Billing of electricity on consumption and not on minimum due.

Reduction of GST from 18 to 12 and 12 to 8 per cent.

Blockbusters becoming obsolete?

Well-known film critic M K Raghavendra says theatres and religious places should be the last to reopen, given the current concerns over the pandemic.

“The decision to reopen theatres may be an effort to return to normalcy, but shouldn’t the situation be brought under a degree of control?” he wonders. “If multiplexes are allowed to open, malls will have to open too.” He agrees businesses have a case to get back on track.

“For how long can commercial activity be curtailed? It’s possible the matter of remaining infection-free is now being left to the public since there is no end in sight to the pandemic,” says Raghavendra.

He feels cinema as enterprise is transformed, with blockbusters needing big halls becoming
obsolete.

“Many industry figures could be in debt and their loans will be difficult to pay off,” he notes, adding that a lot of information about the state of the industry will remain undisclosed.

‘Multiplexes can open fairly quickly'

Kamal Gianchandani, director, Multiplex Association of India (MAI), has read reports that the government is considering reopening cinemas as part of Unlock 3.0. “There is no notification or order. What information we have is what we have learnt from the media. And we are extremely encouraged,” Kamal told ‘Metrolife.’ He says with a lead time of 10 to 12 days, multiplexes can put all safety precautions in place. “We can open fairly quickly,” he adds. India has about 3,000 screens and 850 multiplexes, and he estimates the overall loss in cinema exhibition revenue at Rs 5,000 crore in four months. Like other businesses, multiplexes are eager to reopen, he says.