Do India need more screens to decently accommodate the box office clash?

India is famous globally for its rich film industry. According to statista.com, in 2023 alone, India produced 1796 films in different languages, making it the world’s leading film producer. Indian cinema boasts of diversity and output unmatched globally. Yet, for a country that makes movies at a faster rate than any other, India’s theater numbers tell a very different story – a paradox that suggests that Indian cinema needs more time to reach its huge, movie-loving audience. How far do I have to go?

The numbers behind the screen dried up

When we look at the numbers, the disparity is staggering. There are about 11,000 screens listed on government websites in India. Active people are very few and are estimated to be around 9,000. This means we have one screen per 1.5 lakh population. Compare this to the US, where there is 1 screen per 8,500 people, and China has 1 screen per 17,000 people. Even a comparatively small country like South Korea has 2,700 screens for a population of 50 million, which is comparable to the density of China.

To the general reader, this may just seem like a difference in numbers, but it is important to consider the impact of these figures. India, with a population of over 1.4 billion, has 9,000 active screens, while the US has 40,000 screens (pop. 34 crore) and China has a remarkable 80,000 screens (pop. 141 crore). This effectively means that millions of Indians miss watching movies in theaters because there are no movies available in their area and not because they don’t want to.

Missed a box office opportunity?

The paltry number of theaters in India is not only an inconvenience for moviegoers; This is also a huge revenue opportunity that is slipping through the cracks. Despite large-scale film production, India’s box office revenue stood at around $12,000 crore, or $1.47 billion, far less than the US, which generated $9 billion domestically in 2023, or China, whose box office That same year it exceeded $7.7 billion. Estimates suggest that India’s box office could more than double to $5 billion if the number of theaters was expanded to meet demand.

Urban-rural divide: Who goes to the movies?

The lack of theaters is even more glaring when we consider the urban-rural divide in India. Cities like Mumbai, Delhi and Bengaluru have relatively high access to screens, though it is still well below global standards. But in rural areas, where more than 65% of India’s population lives, watching a film in a theater may require traveling long distances to the nearest screen, a significant barrier for many potential cinema-goers.

This shortage adversely affects the regional film industry, with languages ​​such as Marathi, Bhojpuri and Assamese often lacking screen space, especially in areas where these languages ​​are spoken.

The second issue that affects the theatrical business is pricing. India’s per capita income is $2,800; Compare this to China and the US as they have $12,400 and $72,000. So, we are far behind in terms of income and if we look at the exchange rates in terms of PPP (purchasing power parity) one dollar versus one rupee is at 22. Now if we take the ATP of PVR Inox, it is around 260. , which is $11.8 in PPP terms and is the ATP across US theaters. So, with an average national income of 4%, our largest exhibitor effectively charges the same prices as American cinema. We have effectively priced out the common man from movie theatres.

Economics of building more theaters

One might wonder why, given the huge demand, more theaters could not open across the country. The answer lies in a mix of economics, regulation, and real estate costs. Building a theater in India can be a high-cost endeavor, especially with rising real estate prices in metropolitan areas. Apart from this, due to strict rules, it has become difficult for theater operators to remain profitable.

The Chinese government subsidized theaters in less developed areas, bringing cinema to the rural population and generating large numbers at the box office. Take this as a sample, China had 3,527 screens in 2007 and now has more than 80,000 screens.

What’s next for Indian cinema?

The lack of theater in India is not just a logistical issue; This is an obstacle that stands in the way of the growth of Indian cinema artistically and economically.

A multi-pronged approach is necessary to achieve this. The government can encourage the construction of theaters especially in rural areas with tax exemptions, providing land on lease and subsidies. Private sector investment, perhaps through public-private partnerships, can also play an important role in bridging the urban-rural divide. Ultimately, new screens are needed to cater to the bottom of the pyramid and make movie watching as affordable as it used to be in the old days.

India’s cinematic paradox – producing the most films in the world while providing the fewest screens per capita – is a poignant reminder of the untapped potential in the country’s film industry. With greater investment, government support and a commitment to expand cinema infrastructure for the common man, India may soon turn this paradox into a new reality. After all, in a country where cinema is more than just entertainment, providing easy access to theaters is as important as making films. The world’s largest film producing country also deserves to be the world’s largest theatre.