The expression, ‘All is not lost’ stands true in case of the Indian film industry thanks to the box-office collections, acrued by some of the films including Gadar 2, Tiger 3, Animal, Jawan, among others. It has been one of the most memorable year for the film industry in India, post Covid, so much so the box office earnings in 2023 is expected to breach the Rs 11,000 crore mark with 2019 holding the record box office earnings of Rs 10,948 crore, as per a recent report by Ormax Media. “The world is continuously changing so are the preferences of the people. If there is a shift in consumer patterns, then there is a spate of flops after which there is experimentation till the filmmakers find the right formula again. It is about how fast consumer content preferences are changing and the time taken to keep up with that is going to be a key determinant as India keeps evolving. Moreover, it is expected that the overall box office collection is going to be at an all-time high this year,” Ashish Pherwani, leader- media and entertainment, EY, told BrandWagon Online.

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Ormax in its report further stated the cumulative box office earnings for January-October releases stood at Rs 9,621 crore, six percent higher than Rs 9,024 crore during the same period in the corresponding year. The filmed entertainment sector was expected to reach Rs 24,400 crore by 2023, as per market intelligence platform, Statista.

It has been an upward trend for the movie exhibition business with audiences thronging theatres. Interestingly, despite a few flops such as Kuttey, Gumraah, Bheed, Gandhi Godse – Ek Yudh, most of the films proved to be a box office success including content-driven films such as 12th Fail and OMG2 (Oh My God 2). The success of these films has not only enthralled moviegoers but also catalysed further investment and innovation within the industry. Production houses are emboldened to continue delivering compelling narratives, while theatre chains are prompted to enhance their facilities to provide a world-class cinematic experience. The symbiotic relationship between filmmakers and exhibitors fuels the industry’s growth and ensures that the magic of the silver screen continues to captivate audiences,” Devang Sampat, CEO, Cinepolis India, said.

Shah Rukh Khan-starrer Jawan was the top earner in 2023, earning Rs 741 crore at the box office, followed by another of his movie Pathaan at Rs 646 crore. Furthermore, regional movies continue to play a crucial role in contributing to the box office earnings. Out of 10 top earners at the box office, six are regional movies while four are Bollywood movies. The six regional movies consist of Vijay-starrer Leo, Rajnikanth-starrer Jailer along with Adipurush, Varisu, Ponniyin Selvan-PS2, and Waltair Veerayya.

To be sure, social media has played a role in driving footfalls to the cinema theatres. Strategic marketing campaigns which integrated offline and online engagement, and collaborations with influential platforms and personalities, building anticipation for movies, resulting in high demand during the initial weeks of release. The average ticket price grew 12% as compared to pre-pandemic levels with the average ticket price for 2022, as per the EY-FICCI report. According to industry experts, a part of the box office earnings goes as entertainment tax while some part of the earnings goes to producers and distributors. The footfall is also associated with food and beverage (F&B) spending as well as allied spending. Watching a movie is not a standalone exercise globally. Furthermore, the increase in footfalls influences ticket pricing strategies. “Blockbuster movies naturally attract increased footfall, prompting cinemas to strategically price tickets at a higher rate. Additionally, the growing share of premium-priced special format screens (an increase of 30%) has contributed to the rise in average ticket price (ATP). Furthermore, cinemas have witnessed a 12% growth in food and beverage (F&B) revenues on a per-head basis, driven by differentiated and gourmet offerings that cater to the evolving tastes of patrons,” Sampat, highlighted.

Global and the road ahead….

This year also witnessed one of the longest strikes in the history of filmed entertainment. The Screen Actors’ Guild and the American Federation of Television and Radio Artists (SAG-AFTRA) went on strike in July. The strike began as a result of SAG-AFTRA and the Alliance of Motion Pictures and Television Producers did not reach an agreement over contract renewals. However, with a new contract signed, the strike is officially over.

The strike is believed to have hurt the industry to a certain extent with all major films slated to be released in 2024 and 2025. The conclusion of the strike means that there will be more releases soon. According to industry experts, the strike’s disruptive impact on production schedules and release dates has left a mark. “Repercussions of the SAG-AFTRA strike would be there for the first six months. There have been multiple changes in the release dates a couple of times. Hollywood movies would start rolling in slowly in the aftermath of the strike. By and large, the force and the capability of which Hollywood movies could have performed will be marginalised in 2024 as a result of the strike,” Girish Johar, producer and film business analyst, highlighted.

As the year comes to a close, the expectations from the box office remain high. Industry experts opine that 2024 will build on the momentum of 2023’s box office boom. “It is going to spill over to the next year. The fight is going to continue until January and then there is a great lineup next year also so Bollywood is back with a bang,” Taran Adarsh, film trade analyst, highlighted.

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