Many of you might already be aware that last month, the two renowned multiplex entities PVR and INOX had announced their proposed merger. The merged entity would eventually become the largest film exhibition company in India with more than 1500 screens across 109 cities.
In a recent related development, it is being reported that the merged PVR-INOX entity is expected to diversify from its existing film exhibition business activity and spread its wings to the business of film production as well. Besides, the combined entity might also enhance its distribution and food and beverages segment.
The company’s diversification strategy was revealed in a recent interview with PVR’s Chairman & Managing Director Ajay Bijli and INOX Leisure’s Director Siddharth Jain by the reputed magazine Business Today.
Regarding diversifying into film production, PVR CMD Ajay Bijli has stated that “The core business will continue to remain exhibition but a lot of tentacles and verticals can come out of it and that’s something we’ll definitely be looking at. We already do distribution…one could look at production as well.” He further remarked that “I do believe that if you play your cards right, the content risk has come down now because there is somebody other than exhibitors also to buy that content.”
The decision regarding the PVR-INOX potential diversification plan has apparently been taken after the highly adverse financial effects on the film exhibitors in India following the advent of the dreaded COVID-19 pandemic.
So, it seems to be a smart move by the merged multiplex giant which can yield rich dividends in case any such untoward incidents happen in the future.
The potential diversification move has also come at a time when Indian OTT platforms like Netflix, Amazon Prime Video, Disney+ Hotstar, and SonyLIV are flourishing, more particularly after most of the theatres were shut down owing to the pandemic induced lockdown.
During the period, the audiences have witnessed many big and small films being directly released on these OTT platforms. This further affected the revenue stream of many Indian multiplexes.
So, in a way, the diversification strategy by PVR-INOX is probably being thought of as a way to also counter the effect of these OTT platforms on the film exhibition business. Because the earnings would not just be dependent on the film exhibition business.
It remains to be seen how the PVR-INOX diversification plan takes concrete shape in the near future. Stay tuned to Binged for the latest updates on the same.