InvestorQ : Is it true that multiplexes like INOX and PVR are diversifying into drive-in cinemas?
manisha Kolvenkar made post

Is it true that multiplexes like INOX and PVR are diversifying into drive-in cinemas?

Answer
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Mahima Roy answered.
1 month ago


After proving to the world that multiplexes and closed entertainment centres were the future, India’s multiplexes may be doing an about-turn. With COVID-19 taking its toll on multiplex companies, Indian multiplexes are gradually veering back to Drive-in models.

Yes, that is absolutely true that India’s beleaguered multiplex companies like PVR and INOX Leisure are looking to foray into drive-in cinemas to get over the concern of social distancing in closed places. These are open air theatres, where the audience drives in and watches.

The reasons are not far to seek. Multiplexes have recorded virtually zero revenues in the last 5 months as most new releases have been held up. Those that are not held up have adopted the OTT route via platforms like Hotstar, Netflix and Amazon Prime.

That latest trend is borne out and confirmed by some of the top real estate consultants in India. Most of them, on conditions of anonymity, have admitted to the press that they are getting enquiries from multiplex companies about drive-in cinemas in key Indian cities.

The average investment in a drive-in cinema ranges from Rs.5 crore to Rs.8 crore based on location. They are much easier to maintain and investment for interiors is much lower and it is more like a one-time investment and overcomes the social distancing issue too.