 "Ajay Bijli, managing director, PVR INOX")
In an era where people can access top content in films or music across the globe with just a tap on their personal devices, Ajay Bijli, managing director, PVR INOX, India’s largest cinema exhibitor, in an in-person interview with Roshni Shekhar, talks of the resilience and significance of the theatre industry in a digital-first world. Edited excerpts:
After the pandemic, a lot has changed in the film industry. PVR INOX has added initiatives to go beyond the theatre business by expanding its revenue stream and using cinema as a multi-purpose social hub. Will this be the new norm for cinema exhibitors?
I don’t think so. We are comparing two different formats of how movies are watched. OTT (over-the-top platform) is another format for home entertainment. Home entertainment and the cinema have been coexisting for decades. Then there have been radio, black-and-white television (TV) to colour TV, satellite channels, and DVDs (digital video discs) and now we have come to OTTs. Like many, OTT is one more addition to home entertainment. We (the theatre industry and the OTT platforms) are not in competition. Both have their own place in the sun.
All that has changed now because there is a window between the captive audience and the OTT audience (referring to the theatrical window, where the period when films were shown only in theatres before being available in other mediums). However, people are not straitjacketed. They still want to have shared experiences and shopping centres, and quick-service restaurants are doing well. Similarly, cinema is a shared experience outside home and I think it will always remain. It was because the theatres were closed for 18-24 months during Covid that the volume of OTT increased. But it is not an either-or thing. We are comparing two different formats of filmmaking.
Secondly, in the economic rationale of movies, there is no cap on how much a movie can do when it is released theatrically. Before Covid, only one movie did a ₹500 crore business and after Covid, seven movies have done more than a ₹500 crore business. That means theatres are very much here to stay. It is just the number of movies that has reduced. Also, there was a Hollywood (writers’) strike and therefore, people are just making too much out of this.
OTT is good because it is giving filmmakers and the film community to express themselves in different formats. It is good also because lots of languages are being consumed. This also explains why South Indian movies are getting released on a pan-Indian basis.
How do you look at occupancy in theatres this year? Last year only a few movies could drive the footfall.
I think this year is looking extremely good. We recently had Ajay Devgan’s movie (Raid 2), which has done very well. With the strike over, (Hollywood writers’ strike) we have many Hollywood movies releasing this year. Tom Cruise’s (Mission: Impossible- The Final Reckoning) is coming up, and so are movies from the series of Avatar and Jurassic World. Several Marvel franchises are expected. Here (in India), Ranbir Kapoor’s two movies, Aamir Khan’s Sitaare Zameen Par, and Yash Raj Films’s War 2 and Housefull 5 are some of the big movies this year.
Talking about South Indian movies being released across India and gaining huge momentum, do you anticipate those to dominate the cinemas in the near future?
There is no domination. It is just that you have to tell a story that resonates with the whole country. In the post-Covid era, some movies that have been made by South Indian directors have resonated with the whole country and I think it is a good thing.
We have got cinemas all over the country. These pan-Indian movies are a good step because we have a lot of collaboration happening, such as local collaboration. Ramayan (referring to the movie that is about to come and will be starring Ranbir Kapoor as Ram) is a collaboration which is emerging from Bollywood. Now, I think movies have to be made for the whole country.
Many industry executives have said that India’s screen density is not as big as other countries’. What is PVR INOX doing to expand its presence?
We are looking at wherever there is potential. We are not egoistic. We have to be sensible about the return on capital. I have to look at where the PVR experience or the INOX experience is not available. Only to those places or cities will I go. Of course, India can take another 10,000 to 15,000 screens. For the company, those pockets and those catchments where there is no quality exhibition facility (on expansion in India).
Recently, we opened a cinema multiplex in Jabalpur and a Director’s Cut (PVR INOX’s luxury format) in Noida because the Director’s Cut’s luxury experience was not available there. Different formats are being opened wherever there is a requirement or wherever we find a gap in the market.
A lot of restaurant brands are tying up to open outlets at PVR. How is this helping PVR INOX’s food and beverage (F&B) revenue?
Some revenue is pre-ticketed and some through the food courts we have done with Devyani (referring to the company’s collaboration with Devyani International), and some is post-ticketed.
F&B is part of the experience. It is not compulsory for people to buy popcorn or a drink, but people come for an enhanced experience. We want to make sure that there is quality everywhere and we as PVR INOX position ourselves to be affordable as well as aspirational.
PVR INOX has 1,756 screens — across 113 cities — in India and Sri Lanka, while the main focus has been expanding in India. Is there any particular challenge for not expanding in other international markets? Or do you have plans?
We don’t have plans for a global expansion. The reason is simple. One, India itself is under-screened. Two, there is no market that is as unique and as vibrant as India. India has 1,800 films being made and close to one billion tickets are sold here. There is not a market like this anywhere else in the world.
One of the biggest reasons for some films not earning big money is fast availability on OTT platforms. Has the film industry decided (or is planning) to increase the time gap between a movie’s release in theatres and its digital release?
Everybody (in the industry) realises that the window between theatrical and OTT releases is small, and this should change. It (a movie) can be out on pay-video on demand. The word OTT is used loosely. Ideally, the content from cinemas should be out on pay-video on demand and later be available on subscription-based video on demand. The journey (of content being released in various mediums) is changing and filmmakers have realised it. I do expect it to change.
With several single-screen cinemas shutting down, are you planning to expand by acquiring some of them?
We are growing organically. We will continue to expand through the franchise-owned, company-operated (Foco) model in the coming years. I think the brand has reached that stage similar to the hospitality industry, where they monetise their brand and certain assets related to it. We are fortunate that a broad set of developers, big and small, has come forward for our Foco model and we are focused on that.
