Need new strategies to reduce demonetisation impact

He is right. A highly appreciated film like Dear Zindagi with Shah Rukh Khan and Alia Bhatt, with its limited release, has earned just Rs.47 crore in the Indian box office in first week, while SRK’s earlier film Fan (April 2016) despite mixed reviews, collected over Rs.71 crore in first week. Clearly the box office revenue is down by over 30%. There is a drop in revenues at canteens by around 50% as audience are not having liquid cash, though they are able to buy the tickets online.   The situation is similar in South. While multiplexes, despite online ticketing losing around 10 – 20% ticket sales, single screens, which contribute to 80%, are losing around 40% due to cash crunch. Overall, 30% decline in box office and around 50% in canteen business is a reality. Though many producers and actors claim exaggerated collection figures, the reality is reduced collections at box office post demonetisation. Producers of films releasing in future must keep this in mind before deciding on release. 

A recent survey on demonetisation impact by Brickworks Media state that across all sectors (cars and bikes, FMCG products etc.), the retail sales is down by 20 to 50%. When common people are waiting to take money at banks and ATMs, one cannot expect them to stand in queue to buy film tickets. Hence, only if a film is highly talked about, the audience are interested in coming to theatres.

The way out 

Rationalised releases: The current release pattern of 3 films a week in Tamil (12 to 14 films a month) must stop and at best 8 films a month should release as with limited releases, the interest among audience to come to theatres will increase. The decision of Singam 3 producers to postpone release by a week and producers of Kathi Sandai and Bogan to release their films in January 2017 is justifiable under the current situation. Hopefully, by then the situation will ease out and good response at box office can be expected. 

New methods of marketing: Conventional media marketing is not enough to catch audience attention. One has to go beyond and create excitement among audience. The marketing of Vijay Antony’s Saithan stands out in this respect. One has to appreciate the producer’s guts in releasing the film footage, initially first 5 minutes and then next 5 minutes ,to create interest and show the audience what is in store for them. Such innovative marketing techniques, com bined with good content can change the film’s fortune.

Compelling reason to watch: A film’s release must have a compelling need for audience to watch in theatres (featuring a big or successful artiste, most talked about subject or sequel, popular director’s film or innovative marketing). If there is no compelling reason, under current, tight cash situation, we cannot expect audience in theatres, even if the film is good. 

Online ticket sales: It is high time, even single screens totally moved towards online ticket sales, not just multiplexes, so that audience can use their swipe cards and buy tickets, instead of cash. From 20 to 30% contribution of ticket sales, online must move towards 80% of ticket sales for the box office to bounce back. Theatres must invest in technology for the same. Canteens also must offer food and beverages through pre-ordering.

Cost reduction and transparency: As the current situation may last for another six months, producers must look for cost reduction in every possible manner, along with moving towards transparent accounting. Transaction using unaccounted money or cash is no longer possible and hence it is time to move towards transparency, properly accounted film production and sales to make this business viable in the long run.