As Diwali geared up to be profitable for cinema chains and theatres, it seems it has taken a toll on PVR’s INOX cinema chains as they have seen a significant drop in their share prices.
The stock prices saw a 7% drop earlier today which was surprising given the business they are having with the recent Diwali blockbusters like Singham Again and Bhool Bhulaiyaa 3.
There might be many reasons for the fall as many have claimed that the films underperformed despite minting good money through the weekend. Fans were expecting more from Singham Again and BB3 and in that aspect, it might be one of the reasons for this downfall.
One of the main reasons however lies in the marketing strategy of these cinema chains. PVR and PVR’s INOX don’t promote regional films as much they promote mainstream Hindi films, which is, somewhat agreeable but things get difficult when these films outperform some of the mainstream films.
These cinema chains prefer showing regional films with less screen capacity and low timings making it limited for the audiences. As fans get access to regional Kannada, Malayalam, Tamil, and Telugu films within four weeks of their release, cinema chains avoid giving them more shows and screens.
Another flaw with PVR and PVR INOX is their management and consumer interaction. Overpriced items and ticket prices are also adding more to the already troubled management of these chains. With such a drop in their stock prices, it is a matter of debate for the professionals working at INOX and only time will tell if this strategy changes ahead or not.