Multiplex operators are witnessing around 15-20 per cent decline in footfall across India due to coronavirus scare and deferral in release of several big-ticket movies, which may impact revenue in the quarter, industry officials said.
Several states and UTs including Delhi, Kerala and Jammu & Kashmir have directed the closure of all movie halls as a precaution against Covid-19.
The Karnataka government has also directed to close movie halls in Bengaluru while the Maharashtra government has ordered shut down in some cities such as Mumbai, Navi Mumbai, Nagpur, Pune and Pimpri Chinchwad.
According to industry officials, multiplex owners, for the safety of viewers, are taking several precautions such as use of disinfectants and increase in the frequency of housekeeping and daily deep cleaning routines, and are "optimistic about the business" once the situation normalises.
"Coronavirus is a concern indeed for cinemas across India. Already we have seen with Baaghi 3 that footfalls are down about 15-20 per cent in certain places. There is a lot of paranoia about the virus and it has impacted business but perhaps not to such an extent as the Western countries," Mukta Arts MD Rahul Puri told PTI.
He further said:" Bracing for a shutdown in key international markets, big films have shifted their release dates, as those markets are key for them and their business prospects."
"This may not be the case with all movies but certainly the industry will take a bit of a jolt as the bigger movies which were expected to bring in much needed revenue have shifted to later in the year impacting the quarter," said Puri.
Producers of Akshay Kumar-starrer Sooryavanshi have already rescheduled the release date of the movie.
Elara Capital Vice-President Karan Taurani said: With a big-budget film like Sooryavanshi getting postponed, there is expected to be a ripple effect, and we may see the release date of other key movies getting shifted over the next three months. Also, with the number of novel coronavirus cases rising across key cities, we may see other state governments also shutting down multiplexes.
According to him, the Delhi-UP circuit contributes nearly 18 per cent of the overall box-office revenues, hence filmmakers will have no choice but postpone their movies.
Meanwhile, multiplex chains are also stepping up safety measures at their properties for viewers.
"There is no doubt that the current situation demands a lot of our attention and focus, and therefore we are channelising and committing our energies into ensuring a safe and healthy cinema viewing experience for our guests. But at the same time, we firmly believe that with all the precautions and medical knowhow, collectively, we will see through this impermanent phase," said INOX Group Director Siddharth Jain.
According to him, everyone in the industry from the film producer, who are postponing the films to the landlords of the properties are very supportive in this entire matter and expect intervention to elevate the sector from the government after the crisis is over.
"We are optimistic that big releases will bring people back to cinema halls. It is not just Sooryavanshi, but movies like Gulabo Sitabo and Gunjan Saxena will also play an important part in bringing the cinema routine to normalcy, whenever they get released," he said.
However, on being asked about the impact, Jain said that they are not ascertaining the impact on the business, but focusing on keeping their properties clean and hygienic.
"We have increased the frequency of our housekeeping and daily deep cleaning routines. Disinfectants are being used for sanitizing and wiping all touch points like food counter tops, Box Office counters, armrests, grab rails, door handles & knobs, light switches and other frequently used equipment. Kitchen Stewarding Processes have been intensified and are being carried out with utmost care," Jain added.
Besides, Jain also expects the government to help the industry after the Covid-19 scare is over.
"Although the government is asking to shut down right now, we are quite confident that the government will understand the financial constraints, everybody has gone through and would come out with some plan or other later to alleviate the sector. This is a very important sector of the economy," he said.
A spokesperson for BookMyShow said: "We recognise the ongoing health concerns due to the coronavirus and are committed to working with the regulatory authorities and the government on all precautionary health advisories issued across states.
"BookMyShow fulfils the role of a ticketing aggregator for all movies listed on the platform and will follow all due procedures to ensure no inconvenience is caused to our valued consumers, in case of any cancellations or rescheduling of movie releases. We will continue to closely monitor the situation and request all consumers to stay safe," he said.
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