OTT spoiled the game of multiplexes, crowds and earnings decreased, then the owners took such a decision

OTT Platform: After the Covid Di epidemic, the craze of OTT platforms has increased rapidly among the people. The effect of this was that the crowd in multiplexes is being seen less. After which malls are planning to cut the multiplex space of the goods.

Multiplex Size in Malls: The popularity of OTT platforms has increased rapidly after the Covid pandemic. Due to the increasing trend of viewers towards this, the number of viewers in multiplexes has increased. Keeping in mind the changing trend among people, big mall developers are planning to reduce multiplex space in their upcoming projects. The biggest reason for this is that multiplexes are no longer able to attract crowds as before, not generating enough revenue.

Earlier multiplexes used to generate 10% of the mall's footfall

According to the news published in the Times of Economy, earlier multiplexes used to generate 10% of the footfall of the mall. This figure has now come down to 6-7%. After the increase in this figure, developers are forced to rethink their strategy. Shriram Khattar, Vice Chairman and MD of DLF's Rental Business, says that nowadays people have many entertainment options other than cinema. For this reason, malls are thinking of giving less space for cinema halls.

Multiplexes pay a minimum guarantee amount to mall operators every month and share revenue. In 2023, they were able to cross the minimum guarantee threshold in 8-9 months. But this year, they have achieved it in just four to five months. Mohammed Ali, CEO (retail) at Prestige Group, says cinemas in South India still do better than other parts of the country because there are four regional languages.

He said that we have to reconsider the space allotted to the multiplex because the occupancy level has declined due to increased competition from OTT. People are focusing on physical activity. Any mall is occupied by 10% cinema, 10% food and beverage brands. About 5-6% of entertainment and gaming companies are occupied. But this will change in the project of the coming time. Harsh Vardhan Bansal, co-founder of the Unite Group, said that the space for cinema in our future mall is reduced and that space is given to other revenue-generating businesses.