Sluggish real estate market indirectly affects Bollywood collection. Bollywood remain unable to amass good revenue as there aren’t many multiplexes to project the Movies.
Bollywood collection is mainly from the multiplexes which are built mainly in the mall projects. Once the mall projects are affected by the sluggish real estate market, construction of the mall projects is also affected. In short this affected the collection of Bollywood movies which amass revenue on the basis per multiplex.
Normally revenue of Bollywood movies is determined on the basis of number of multiplexes. For instance the collection of the two blockbusters of 2012 both Barfi and Rowdy Rathore would have earned many crores more if there were more multiplexes in the country.
Both Barfi and Rowdy Rathore were the top hits of 2012. While the latter’s revenue per screen was Rs.5 lakh, the formers it wasRs.6.5 lakh. Now you can imagine the amount Bollywood loses due to the lack of multiplexes.
As per the estimated details nearly 150 multiplexes are halted across India. Though sluggish real estate market is pointed as the main reason, according to the experts the diverted interest of the builders also is another reason for the situation.
At present builders are mainly concentrating on residential development as it is more profitable for them. They are avoiding commercial developments and mall projects in which mostly the multiplexes were built.
Multiplexes contribute a major share of any film’s total collection and so it is important to build such multiplexes so as to have good revenue from the Bollywood movies.
Majority of the multiplexes are built in mall project and so the builders are expected to come up with more mall projects. Until they come up with large number of mall projects with multiplex facilities, the revenue of Bollywood will remain lower. This is the reason why PVR had to buy Cinemax with its 138 screens in 2012.
