Shares of two multiplex chain operators fell over 4% each after INOX on Thursday expressed its disappointment over the decision of a production house to release their movie directly on an over-the-top (OTT) platform.
Inox Leisure tumbled 4.40% to Rs 192.30 while PVR declined 4.85% to Rs 845.
Meanwhile, the BSE S&P Sensex lost 85.51 points or 0.27% to 31,037.38.
India has been under a strict lockdown since 25 March 2020 to battle the virus, leaving about 9,500 theatres shut and depriving Bollywood of box-office revenue. Hence, seven films, including two Bollywood movies starring A-listers, such as Amitabh Bachchan and Vidya Balan, will reportedly stream the movies directly on an OTT platform following a deal.
INOX, in a statement issued on Thursday (14 May 2020) said: "INOX would like to express extreme displeasure and disappointment on an announcement made by a production house to release their movie directly on an OTT platform by skipping the theatrical window run. The decision of production house to deviate from the globally prevalent content windowing practice is alarming and disconcerting." It added that the chain reserves all rights, including taking retributive measures against such 'fair weather friends.'
As per reports, this move marks a significant shift for the country's film industry, which relies heavily on box office revenue, and comes as lockdown measures to slow the spread of the coronavirus wreak havoc with film launches.
OTT platforms active in India include Amazon Prime Video, Netflix, Youtube, Hotstar, Zee5, Alt Balaji, Voot, Sony Liv, Viuclip, etc.
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