India is one of the biggest nations of the world with a population
crossing 1 billion people. Like any other country, movies remain the
main mode of entertainment in India as well. India has the fastest
growing middle-class people whose purchasing power is also increasing
day by day. The craze for movies and movie stars in no less in them,
and they are also a frequent visitor of the cinema halls across the
country. Once, only single screen theaters were ruling in the entire
nation. But now slowly, the multiplexes are taking their place. Now, you
get the option of more than one movie in one place, and you can see a
film of your choice without wandering from theater to theater.
Many movies are breaking the record of 100 crore clubs and are
minting new records of revenue. Nearly 1000 movies of small and big
budget movies get released in the theaters, among which the lowest
has a gross opening of nearly 5 to 10 crores. Despite the glamorous
showoff of the Indian movie industry which is Bollywood, the gross
earning of the industry remains below $2 billion per year.
The reason behind this is because of the lesser number of cinema
screens all across the nation compared to other countries. Despite
having a larger population than North America and Japan, the revenue
income falls short when it comes to domestic earnings of the movie. It
is mainly because the Indian Territory is severely under screened.
Where there is 1 cinema screen for 7,800 people in the USA and 1
screen for 45,000 people in China in an area, this figure mounts up to 1
screen per 96,300 residents in India. As the cinema halls are less in
India, not every movie fan is able to go to the theater for seeing a
Another factor is that most of the movie theaters in India are still single
screen cinema halls. Out 13000 cinema halls in India, 10000 are of
single screen theater. The ticket rates in these theaters are lower than
the multiplex as they cannot provide the same facilities which a
multiplex can. Due to this infrastructural issue, the price of the ticket
goes low and so does the revenue of the movie industry.
The next thing that puts a brake on the revenue generation of the
movies is high tax ratio. While showcasing a movie, the distributor and
the theater owner has to bear both service tax and entertainment tax.
As the tax rates go high, it does affect the revenue of the movie as well.
Even though the ticket price remains a little affordable in single
screens, the multiplex ticket rates go sky high which keeps the movie
lovers away from the theater. This is another reason for a drop in the
revenue of the movie industry.
Piracy also takes a toll on the revenue of the movies as the people buy
pirated CDs or download movies online. This automatically hurts the
movie industry as ticket sales goes down because of it. In an estimated
figure, the Indian film industry loses around 18,000 crores which is
$3.34 billion dollars. Taking a look at this, the movie industry really
needs to upgrade its infrastructure and build more cinema halls so that
the movie lovers can easily go to the theater and enjoy the movies. It
will benefit both the movie lovers and the movie industry as well.