Box office collections of April

On an average every month Bollywood films make Rs 110 crores from Hindi films and one of the low business month of Hindi cinema was May 2008 when the collections went down to Rs 90 crores but in the month April 2009 the collections were as low as Rs 60 crores, that is one of the lowest amount in the last three years. What are the reasons for the low collections?

The current month of April has two major events in the country. Many family audiences and movie watchers had other engagements such as IPLs and the national general elections to watch. Adding to the situation, the producers strike and non screening of good movies in multiplexes deteriorated the situation.

Market experts are expecting that the Bollywood collections in the month of April will be low by at least 15-20 % when compared to March and multiplex owners are predicting losses of almost Rs 200 crores. Movie makers are also predicting that the collections will be further down, if the strike carries forwards to another month and in case, no change in situation is seen till June.

As the producers strike started on April 4, two – three high budget movies were released in the week and after that unknown unpromoted movies are getting released. Occupancy of a multiplex is around 75 – 95% but as the movies are not getting released, low occupancy is troubling multiplex owners. The average cost to maintain a multiplex is around Rs 40-50 lakhs monthly and collections of multiplexes have fallen to Rs 15 – 25 lakhs. Other revenues comes from the sale of eatables and snacks. The current rate of revenue collection indicates multiplex owners are making losses and the situation won’t improve until producer’s strike ends.