India's Cinemas Plan 1.25 Lakh Jobs, ₹950 Cr Tax Surge: Report
Overview
A new report by the Multiplex Association of India and E&Y suggests doubling India's cinema screen count to 20,000 within five years could create 1.25 lakh jobs and generate ₹950 crore in additional government tax revenue. The industry faces challenges including declining revenues and shorter theatrical windows.
India's film exhibition sector is poised for significant growth, potentially creating 1.25 lakh jobs and adding ₹950 crore to government coffers over the next five years. This projection hinges on doubling the current number of cinema screens across the nation to 20,000, according to a joint report by the Multiplex Association of India and E&Y.
However, the industry's recent performance shows a different picture. Between 2019 and 2024, the number of cinema screens saw only a marginal increase from 9,527 to 9,927. Concurrently, filmed entertainment revenues have slipped 2% from their 2019 peak, falling from ₹19,100 crore to ₹18,746 crore.
<h3>Recommendations for Growth</h3>The report advocates for strategic measures to unlock this potential. Key suggestions include offering tax holidays for new screens established in underserved areas, particularly the 19,000 pin codes currently lacking cinema facilities. Deregulation of ticket pricing, aligning it with the hospitality sector, is also proposed.
Granting the exhibition segment industry status is another crucial recommendation. This would allow cinema operators to access industrial tariffs for electricity, a significant operational cost, rather than the higher retail rates. Furthermore, permitting alternate uses for theatre spaces, such as hosting live events and MICE (Meetings, Incentives, Conferences, and Exhibitions), could diversify revenue streams.
<h3>Addressing Industry Challenges</h3>Challenges persist, however. India's screens per million population ratio has declined from 7.6 in 2018 to 6.8 in 2024, significantly trailing behind global peers like the US (109), the UK (66), and China (64). The industry is also grappling with a shrinking theatrical window – the period before films are available on Over-The-Top (OTT) platforms – which has been reduced from the pre-pandemic norm of 90 days to a mere four to eight weeks in 2024.
