Why the Indian movie industry is facing its biggest crisis in years
India’s movie industry faces its biggest challenge in decades, with many studios failing to keep up with demand, and a sharp slowdown in sales, analysts said today.
Industry executives said they expect to see more consolidation and reduced investment as a result of the crisis, which will force companies to cut staff and cut corners.
The film industry has struggled for years to maintain its box office revenues, with industry leaders blaming weak box office growth and poor ticket sales for its continued woes.
The industry is forecast to see a loss of 6.9% of its market value this year, from 7.7% in the year-ago period, according to the film industry’s annual report.
The report noted that the industry will also be impacted by a slowdown in demand for movie tickets, with tickets expected to drop by more than 40% by 2021.
The slump in movie sales is the biggest threat to the industry’s future.
The Indian movie box office revenue was $1.3 billion in 2021, down from $1,632 million the year before.