More and more audiences are now going back to cinema

economictimes.indiatimes.com:

movie theatres after the Covid interval, dispelling fears they would continue to seek their entertainment only from streaming platforms in the comfort of the couch. Companies running theatre chains are reporting strong numbers based on geographical spread. PVR Inox, for one, delivered its best quarterly results ever of a net profit of ₹207 crore.

In the south, movie audiences have almost caught up with pre-pandemic levels. The rest of the country is following.

Although the dire prospect of digital revenue cannibalising ticket sales has not materialised — partly because streaming alone can't cover movie-making costs — the cinema hall business has changed for good. This has forced cinema hall companies to enter uncharted territory like differential seat prices and subscription, innovation that should ultimately benefit the business of distributing movies.

It also has a bearing on the kind of movies being made. Higher ticket prices on opening weekends will favour blockbusters with tested franchises and stars, edging out lower-cost dramas and comedies. The latter are finding their natural habitat on OTT where revenue can cover their smaller budgets.

The movie production pipeline is also moving into top gear, bringing back theatre audiences.

India produces nearly a quarter of the world's films and the recovery in volume has been remarkable with the easing of pandemic restrictions. With the right mix of genres and innovative distribution carve-outs for box office and streaming, the cinema industry can feed both channels adequately. The hurdle for streaming is film budgets and volumes, while that for theatres is box-office success.