Reel Revolution: Double Screens, Unlock Crores in Jobs and Taxes for India's Box Office Boom

A joint Multiplex Association of India and E&Y report reveals doubling cinema screens to 20,000 in five years could create 1.25 lakh jobs and add Rs 950 crore in taxes. Despite marginal growth from 9,527 screens in 2019 to 9,927 in 2024, revenues dipped 2% to Rs 18,746 crore. Key recommendations include tax holidays and deregulation for revival.

 

Key Highlights

Core Findings

The report from Multiplex Association of India and EY underscores the film exhibition sector's untapped potential amid stagnant growth. India's cinema infrastructure has barely expanded, with just 400 new screens added over five years, hindering job creation and revenue. This contrasts sharply with global peers, where higher screen density fuels entertainment economies. Doubling to 20,000 screens targets underserved areas, including 19,000 pin codes lacking cinemas, promising economic multipliers.

 

Strategic Recommendations

Policymakers urged to introduce tax holidays for new screens in under-served regions to accelerate deployment. Deregulate ticket pricing like hospitality sector and grant industry status for industrial electricity tariffs, cutting key operational costs. Allow theatres for live events, MICE, experiences, and 24x7 operations to boost monetization beyond films.

 

Industry Context

Challenges like OTT encroachment and high costs have stalled progress, but revival measures could align with 2026 box office optimism projecting Rs 14,000 crore plus from star-studded releases. Enhanced screens would amplify Bollywood's economic footprint, supporting jobs in exhibition, tech, and ancillary services vital for India's media sector.

 

Sources: The Tribune India, Rediff Money, PTI News