Indian cinema is dying despite producing the world's largest number of films, say the entertainment industry experts. And the echo of the same can be heard in the multiplexes of the retail malls of the country.
The drop in footfall at multiplexes and theatres, which once anchored shopping malls across India, is now disrupting the country’s retail real estate sector. Indian cinema culture is under strain, and the impact is reaching far beyond just the filmmakers.
The decline in cinema performance is significantly impacting food courts and retail stores, leading to reduced dwell time and lower sales conversions. Mall developers now say that multiplexes, which used to drive around 10% of foot traffic, are now bringing in just 6–7%.
PVR INOX closed 85 underperforming screens across 24 cinemas in FY24, and the company now plans to shut nearly 70 more screens in FY25, including several in Tier I cities like Mumbai. Managing Director Ajay Kumar Bijli and Executive Director Sanjeev Kumar said that the company is considering the potential monetisation of its non-core real estate assets in prime locations such as Mumbai, Pune, and Vadodara.
Once a weekend staple for middle-class families, movie-going is no longer the accessible outing it used to be. Multiplex ticket prices have surged over the past few years, turning a family movie night into a costly affair. Bollywood actor Shah Rukh Khan recently highlighted this issue, calling for more affordable theatre infrastructure. He said that there is a pressing need for simpler, and cheaper theatres in smaller towns and cities.
Besides, the rise of OTT platforms has made it easier and cheaper for people to stay home and watch new releases.
The broader economic implications of the dying cinema culture are substantial.
Malls were once designed with cinemas as their central draw—built to pull in steady crowds that would shop and dine before or after catching a film. Now, with declining ticket sales and fewer theatre-goers, the entire commercial model is under pressure.
Some real estate developers are exploring alternatives like indoor entertainment zones, co-working spaces, and larger food courts to fill the gap left by fading cinema traffic.
Industry watchers say it’s a wake-up call. A Delhi-based retail analyst said that theatres can no longer serve as the main attraction unless they reinvent themselves, emphasizing that the business model must adapt to new consumer behaviour through cheaper tickets, improved in-theatre experiences, and stronger integration with retail.
