Is there a need for more screens in India to accommodate box office clashes in a civil way?

India is globally renowned for its thriving film industry. In 2023 alone, India produced a staggering 1796 films as per statista.com, across various languages, making it the world’s leading film producer. Indian cinema boasts a remarkable diversity and output unmatched globally. Yet, for a nation that churns out movies faster than any other, India’s theater count tells a very different story — a paradox that reveals just how far Indian cinema has to go in reaching its vast, movie-loving audience.

The Numbers Behind the Screen Drought

When we look at the numbers, the disparity is staggering. India has just about 11,000 screens listed on Government websites. The active ones are much lesser and it’s estimated to be around the 9,000 mark. That means we have one screen per 1.5 lakh population. Compare this to US, they are at 1 screen per 8,500 folks and China is at 1 screen per 17,000 individuals. Even a comparatively small country like South Korea has 2,700 screens for a population of 5 crore, matching China’s density.

For the casual reader, that may seem like just a difference in numbers, but it’s important to consider the impact of these figures. India, with a population surpassing 1.4 billion, has 9,000 active screens, compared to 40,000 screens in the U.S( population: 34crore) and a remarkable 80,000 screens in China( population: 141crore). This effectively means that millions of Indians miss out on watching films in a theatre because there are none available in their area and not because they don’t want to watch.

A Missed Box Office Opportunity?

India’s paltry theater count isn’t just an inconvenience for moviegoers; it’s also a massive revenue opportunity slipping through the cracks. India’s box office revenue, despite its massive film production, hovered around the 12,000 crore mark or $1.47 billion, far lower than the U.S., which generated $9 billion in 2023 domestically, or China, whose box office exceeded $7.7 billion the same year. Estimates suggest that India’s box office could more than double, reaching $5 billion if the number of theaters expanded to meet demand.

The Urban-Rural Divide: Who Gets to Go to the Movies?

The scarcity of theaters is even more evident when we consider the urban-rural divide in India. Cities like Mumbai, Delhi, and Bengaluru have relatively higher access to screens, though still far below global benchmarks. But in rural areas, where over 65% of India’s population resides, watching a film in a theater can involve long-distance travel to the nearest screen, a significant deterrent for many potential cinema-goers.

This shortage disproportionately affects the regional film industry, with languages like Marathi, Bhojpuri, and Assamese often lacking screen space, especially in regions where these languages are spoken.

The other issue that plagues theatrical business is over pricing. India has a per capita income of $2,800; compare it with China and US as they have $12,400 and $72,000. So, we are lagging way behind in terms of income and if we look at exchange rates in terms of PPP( Purchasing Power Parity) a dollar to a rupee is at 22. Now if we take the ATP of PVR Inox, that stands around 260, which in terms of PPP is $11.8 and that is the ATP across US Cinemas. So, with an average national income of 4%, our biggest exhibitor charges effectively the same price as an US Cinema. We have effectively out priced the common man from Movie Theatres.

The Economics of Building More Theaters

One might wonder why, given the immense demand, more theaters haven’t sprung up across the country. The answer lies in a mix of economics, regulation, and real estate costs. Building theaters in India can be a high-cost endeavor, with real estate prices soaring, especially in metropolitan areas. Furthermore stringent regulations make it difficult for theater operators to stay profitable.

China’s government subsidized theaters in less developed regions, bringing cinema to rural populations and generating huge box office numbers. Sample this, China had 3,527 screens in 2007 and now at 80,000 plus.

 What’s Next for Indian Cinema?

India’s theater shortage isn’t just a logistical issue; it’s a hurdle that stands in the way of Indian cinema’s growth, both artistically and economically.

To achieve this, a multi-pronged approach is necessary. The government could incentivize the construction of theaters, especially in rural areas, with tax breaks, providing land on lease and subsidies. Private sector investment, perhaps through public-private partnerships, could also play a crucial role in bridging the urban-rural divide. Finally, new screens need to cater to the bottom of the pyramid and make Cinema viewing affordable as it used to be in olden times.

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 movie industry. With greater investment, government support, and a commitment to expanding cinema infrastructure for the common man, India could soon transform this paradox into a new reality. After all, in a country where cinema is more than just entertainment, providing easier access to movie theaters is as important as making the movies themselves. The world’s biggest movie-making country deserves to be the world’s biggest theatre going one, too.

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