Impact of COVID-19 on Cinema Industry

It is very well known, and we are very aware of the fact that the COVID-19 has brutally affected every sector of industry and given rise to immediate shut down and there is no way looking ahead to overcome this Pandemic. If the battle against coronavirus continues, the economic impact of the ongoing virus is likely to be huge as the state’s finances are already in bad shape.

The only way to suppress the coronavirus is Social Distancing and Complete Lockdown. If this effort is prolonged, then the movie theatre industry will be going to be on the verge of filing for due diligence.

Current Scenario of Movie Theatre Industry

Theatre Industry was already facing problems as well as challenges even before this Pandemic because of continuously losing audiences to a great extent.

If we put our self in the most optimistic scenario, it is so evident that theatres will not open before July, which will result in over 30% loss of box office receipts.

  • The expected loss of about 35% revenue from box office collection
    This is not the revenue generated from the sale of food and beverages but because of Two films that are to be released this year: – Akshay Kumar’s Laxmi Bomb and Salman Khan’s Radhey.
  • Eid will not yield the Same return this year
    Entire Lockdown has resulted in the abrupt shutdown of all theatres because of which the revenues expected to be generated on Eid will be affected aggressively
  • AMC Theatres may likely file for bankruptcy
    Theatres lack the liquidity to stay afloat until the time theatres reopen which will lead the company soon to filing for bankruptcy.
  • Online Screening Industry is getting stronger
    An online screening platform is the one which is likely to remain unaffected by the crisis which places them in a relatively stronger position.
  • The studios’ raptors are testing the theatrical fences
    Large releases such as Invisible Man and Troll II: World Tour, have skipped the theatre altogether as they wanted to take leverage and advantage of kids cooped due to coronavirus.
  • Weaker Studios are being hit hardest
    Even the key players are not having a good time, but those with modest balance sheets and weaker franchises are being hit hardest.
  • Exhibitors are in Distress
    National Association of Theatres Operators, as well as leading filmmakers, have already asked for government support via a loan to ensure exhibitors could survive the multi-month shutdown.
  • 2020 Revenues lost Forever
    Major releases were scheduled in the month between March – June 2020 which will be shifted to later in the year, but the fear of the virus will not let people sit in a dense theatre breathing recirculated air for three hours.
  • Ongoing Partnership on OTT Platform to enhance customer base
    Eros Now partners with Visa to expand consumer offerings.
    Shemaroo Entertainment launches animated kids series on Netflix Worldwide


Suggested Solutions

  • Much more to serve, as the much-awaited movies are on hold to release
    The industry will be having so much in their plate to serve, which will create curiosity among the audiences to rush to theatres.
  • Marathons and unique experience will be the way for operators in the Industry
    The Industry will come out with a unique technique by providing Marathons in the form of Avengers series, Fast and the Furious which people always feel delighted by watching it on full screen but this time providing them to experience the Marathon with advanced technology.
  • It will provide a Unique experience than being at home
  • Audiences will be attracted by the Industry again
    People will again discover the need of this industry because they will rediscover cutting edge, immersive experience that they cannot replicate at home
  • Focusing more on High-Quality screen by reducing the occupancy level
    The industry should come out with more focus towards the sanitization program, deliver immersive experience through high-quality screens by reducing the seating capacity to control overcrowding
  • Theatres should come up with Sanitization Programs
    This will require the industry to invest more in hygiene and sanitization programs on a frequent interval basis so as to ensure safety of the audiences.
  • Encourage Start-ups to come up with innovative ideas to venture this industry by following guidelines of social distancing norms.


There is a saying by the Whipple that “Everyone owns a kitchen but that doesn’t mean everyone wants to cook. Yes, we all have screens at home, but the theatre experience will never go away.

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