Due to the slowdown in the realty market, Bollywood missed many multiplexes which were supposed to be completed by now. It affected the entire Bollywood industry.
Bollywood film industry is affected by the sluggish realty market which has halted many mall projects. It is estimated that around 150 multiplexes across the country has not been completed in time due to the slowdown in the realty market.
It is a bad news for any Bollywood fan to hear that real estate market has indirectly affected the Bollywood industry. If the developers are not developing multiplexes, where will the Bollywood movies be shown and the people will be able to watch them. So in short the slowdown in the real estate sector has affected Bollywood, though indirectly.
In India, majority of the multiplexes which contribute a major share of film’s total collection, are built in malls. Once the mall construction has been halted by the developers due to the existing slowdown, the film industry also is affected. According to experts, Bollywood industry might have lost over 150 multiplex screens which would have generated more income to the industry.
The number of multiplex screens does play a vital role in the total collection of any movie. For instance, the average collection of both Rowdy Rathore and Barfi; two blockbusters of 2012; from each multiplex screen were Rs.5 lakh and Rs.6.5 lakh respectively. So if there were more Screens, the revenue would have grown more.
These films would have earned over Crores of rupees even if they were given only a half or 60% of the total collection from these screens, said Disney UTV’s MD (Studios) Mr. Siddharth Roy Kapur.
Delayed construction of malls is said to be a reason which prompted PVR to buy Cinemax with its 138 screens in 2012. With this deal, PVR emerged as the largest player in the industry. According to Mr. Pramod Arora, group president of PVR, the turn-over of the company would have increased if some 20 to 30 screens were added.
It seems that the real estate builders are leaving mall projects to concentrate on residential development which offers better returns to them. However one thing is sure that the delayed mall projects affect Bollywood industry hard, though only indirectly.