Screen Wars: India's multiplexes go slow on expansion amid box office woes

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Subscribe to enjoy similar stories. India's multiplex boom may be losing steam. With the box office struggling to deliver consistent hits, especially in the Hindi belt, leading chains are slowing their expansion plans, prioritising sustainability over aggressive growth.

Leading multiplex chains can add 180-200 new screens over the next two years, but consistent closures of underperforming screens continue to offset this growth. Industry experts note delays and adjustments in expansion plans, even as the pandemic-induced slump has largely eased. The focus is now on sustainable growth rather than aggressive expansion and a 10-20% slowdown has been witnessed in expansion plans compared to pre-pandemic days when openings were at their peak.

“The number of screens being planned this year are significantly lower than seen in previous years," Anuj Kejriwal, CEO and managing director - ANAROCK Retail said. Also read: Why Hollywood will be looking to Superman and Snow White to rescue it in India The current state of the box office makes it difficult to justify large investments in upgrades and refurbishments, Kejriwal added. However, these investments are crucial for long-term sustainability and maintaining a competitive edge.

Cinema operators are carefully balancing these factors, prioritising upgrades that offer the highest return on investment. To be sure, the perception of South India as a high-performing market is driving many existing expansion plans. Amit Sharma, managing director, Miraj Entertainment, which operates multiplex theatres agreed 2024 was one of the worst years as far as lukewarm box office goes.