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April 20, 2010
Indian box office dropped sharply in 2009, falling 14.6 per cent from Rup80.2bn ($1.8bn) in 2008 to Rup68.5bn ($1.4bn) in 2009. The decline can be explained primarily by the multiplex-producer strike, which lasted for two months, but local observers also point to poor content and unforeseen factors, such as swine flu and general elections. The multiplex strike was the major factor, as multiplex cinemas now represent around 25 per cent of the total industry revenues. This proportion is rising steadily, as multiplex screens go up. In 2009, there were 1,069 multiplex screens in India, although growth slowed due to the strike and the knock-on decline in revenues, as well as the poor economic climate for erecting shopping malls, which is where a large proportion of multiplex cinemas are housed. The global nature of the recession in 2009 also impacted overseas revenues for Indian films, declining by 30 per cent during the year, ending at Rup6.8bn ($142m).
In the case of India, Screen Digest uses the forecast data supplied by FICCI in the annual Media Entertainment Industry report prepared by KPMG. These forecasts are still healthy for the next five years, but are coming from a lower base than before. Box office revenues are predicted to be Rup100.8bn ($2.1bn) in 2014, by which point Screen Digest forecasts there will be 1,745 multiplex screens. There are some positives to the 2009 result, one of which is that a rationalisation (or market correction) has occured in the industry, with producers reporting a 20-40 per cent reduction in talent costs, and producers also forced to seek out more efficient ways to produce.
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