Will PVR-INOX merger fuel competition?
Combined entity expected to take world-class cinema experience closer to the consumers in tier-2 and 3 markets
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Theatres Vs OTT
- Cinema theatres in last 2 years badly hit due to Covid-19
- Explosive rise of OTT players a major concern for cinema theatres
- People coming back to theatres as Covid restrictions lifted
Bengaluru: Entertainment landscape in India is all set to see intense competition as two of India's cinema brands- PVR and INOX Leisure – have announced merger in their bids to deliver an 'unparalleled' consumer experience with a network of more than 1,500 screens.
This merger indicates that competition between physical cinema brands and Over the Top (OTT) or streaming platforms is going to be intense in coming days. As per the announcement, PVR and INOX Leisure will merge to form a single entity through a share swap arrangement. Investors will get three shares of PVR for every 10 shares of INOX Leisure.
The new entity would be named PVR INOX with the branding of existing screens to continue as PVR and INOX, respectively. New cinemas opened post the merger would be called PVR INOX, the companies said in the joint statement.
"While strongly countering the adversities posed by the advent of various OTT platforms and the after-effects of the pandemic, the combined entity would also work towards taking world-class cinema experience closer to the consumers in tier 2 and 3 markets," the joint statement added.
In the last two years, cinema theatres had been badly hit due to closure amid lockdowns and strict social distancing measures. This has led to explosive rise of OTT players in the country with new movies being released on the platform. New entrants are also coming to the market to tap the emerging opportunities. Against this backdrop, the merger of country's largest movie theatres reflect that competition is going to be intense in coming days as people come back to movie theatres for watching movies.
