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Nirmal Bang Report
In recent days we have seen the emergence of some key catalysts that will set the Indian film exhibition sector on the road to a strong recovery. These include-
Maharashtra government announcing opening up of theaters starting 22 October 2021. Maharashtra, based on industry estimates, contributes 25-30% of multiplex revenues in a normal year
Hindi film producers being ready to release their fresh big budget content. They were reluctant to release this when screens opened up in November 2020 after the first wave. Hindi content in a typical year delivers 60-70% of multiplex revenues
Disney in early September 2021 announcing that all new movie releases in 2021 - no commitments beyond 2021- would go to the theaters first and then to other distribution platforms after a window of 30-45 days or more. This should assuage concerns around OTT eating into the theatrical business.
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