Indian Cinema: A dangerous monopoly in the making?

The way the theatre business works in the Telugu states, or, in the South Indian states, is comparatively very different to how it works up in the North, where multiplexes rule the roost. Tickets at multiplexes are generally at a higher cost than normal theatres, and the situation might get worse if a certain collaboration comes to pass.

It is being said that PVR and Inox are looking to merge together, and if this comes to pass, then it would be the beginning of a monopoly that could cost heavily on the already dwindling revenue. If these two manage to merge, citing a low revenue loophole, then things the entire theatre business would ultimately be dictated by them. They both together already control around 40-50% of Bollywood’s theatrical business – for small/medium, it is 60-80%.

If the PVR-Inox merger comes to pass, then they would come to control, dictate and decide everything for Bollywood & Hollywood theatrical business, and also for all the major metros in the country, which includes sharing percentages, promotional charges and a lot of other variables, which will impact the entirety of Indian Cinema. With that being said, strong objections are being raised against this merger, with industry pandits requesting the Competition Commission of India to make sure that this doesn’t happen.