OTT spurt may not affect cinemas in India, says Elara Capital report

Need to socialise cause for growth of movie halls, says Elara Capital

India has been among the fastest-growing for over-the-top (OTT) platforms as the Covid-19 pandemic has pushed adoption of digital significantly in the last one year. However, a new report by brokerage Elara Capital says that cinemas will continue to remain strong in India and other markets within the Asia-Pacific (APAC) region, led by the need to socialise.

This stands in contrast with the trend that prevails in the west, where the influx of digital platforms such as Netflix has been stronger and OTTs now are big players in these markets.

"Cinemas remains an outing and socialising trend in Asian countries