Indian Cinemas Shrink, Box Office Suffers as Multiplexes Cluster in Metros

Media and Entertainment|
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AuthorKavya Nair | Whalesbook News Team

Overview

India's theatrical infrastructure is contracting. Single-screen cinemas have plummeted, while multiplex growth concentrates in top metros, limiting access for millions. This uneven expansion, coupled with high ticket prices and piracy, is squeezing box office collections and shrinking movie-going options for the average Indian.

Indian Cinemas Shrink, Box Office Suffers as Multiplexes Cluster in Metros

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Shrinking Theatrical Footprint

The number of single-screen cinemas across India has dwindled significantly. Once numbering around 9,500 properties, they have shrunk to approximately 6,500 in 2025. This decline is attributed to escalating real estate prices and the pervasive availability of content on streaming platforms.

Meanwhile, multiplex growth remains concentrated in the top metro markets, with only about 3,700 such screens currently operational. This uneven expansion leaves vast segments of the population underserved, alienating them from the modern movie-going experience. In Punjab, the count has fallen from 55 single-screen cinemas in 2002 to just two today.

According to a report by The Multiplex Association of India (MAI) prepared by EY, an alarming 16,350 out of 19,000 postal zones in the country lack any cinema screens. The availability of screens per million population has decreased from 7.6 in 2018 to 6.8 in 2024. Out of India's 1.4 billion population, fewer than 150 million people are estimated to attend theatres annually.

Box Office Under Pressure

This contraction directly impacts box office collections. While the number of films released in 2024 remained similar to 2019 levels, the count of movies grossing ₹100 crore or more fell from 17 to 10.

Rahul Puri, managing director of Mukta Arts and Mukta A2 Cinemas, noted that multiplexes, with their higher average ticket prices (ATPs), further segregate the market. "People cannot always afford elevated pricing," he stated, adding that the closure of single screens means many who previously had access to cinemas now do not.

Pricing and Piracy Woes

The MAI report indicates a strong customer desire for lower ticket prices (54%) and reduced food and beverage costs (38%). Puri elaborated that the industry is failing to cater to audiences losing access, instead focusing on already saturated markets.

Cinema operators face high real estate costs, a major hurdle for building multiplexes, which are typically housed in malls. Compounding these issues, piracy remains a significant threat, with film producer and distributor Yusuf Shaikh of Janta Cinema estimating that more people watch films illegally than in theatres or even on OTT platforms. The MAI report found 51% of media consumers access pirated content, predominantly within the 19-to-34 age group.