Malls may cut multiplex space as cinema-led revenues shrink
mall developers plan to shrink multiplex spaces in their future projects as cinemas no longer attract big crowds and generate enough revenues throughout the year.
Multiplexes used to generate 10% of the footfall of a mall, which has reduced to 6-7%, forcing the developers to rethink the strategy, industry executives said.
«With alternate forms of entertainment, we are looking for rationalising cinema space in the mall,» said Sriram Khattar, vice chairman and managing director, rental business, at DLF.
Multiplexes pay a minimum guarantee amount to mall operators every month and share revenue. In 2023, they were able to breach the minimum guarantee threshold in 8-9 months, but this year they have managed it only in 4-5 months.
«In Southern India, cinemas still fare better than other parts of the country because of four regional languages,» said Muhammad Ali, CEO, retail, at Prestige Group. «Having said that, we still have to rethink the space allotted to multiplexes as competition from OTT has led to a decline in occupancy level. The share for entertainment and gaming and F&B is going up as people are focusing on experiential retail and physical activity.»
Leadership
From Idea to Product: A Startup Development Guide
By — Dr. Anu Khanchandani, Startup Coach with more than 25 years of experience
Finance
A2Z Of Finance: Finance Beginner Course
By — elearnmarkets, Financial Education by StockEdge
Finance
Crypto & NFT Mastery: From Basics to Advanced
By — CA Raj K Agrawal, Chartered Accountant
Artificial Intelligence(AI)
Ja
