16th June 2023, Mumbai: The highly anticipated release of Prabhas starrer “Adipurush” in movie theaters on June 16th led to a significant disappointment among the audience, resulting in a backlash for the film. Consequently, shares of PVR and Inox, two prominent cinema chains, witnessed a decline of nearly 3 percent. The initial positive sentiments surrounding the stock were dampened by the movie’s underwhelming reception, which was expected to boost occupancy levels in the first quarter of the financial year 2023-24.
Renowned Indian film critic Taran Adarsh expressed his discontent on Twitter, labeling the movie as an “epic disappointment” and awarding it a half-star rating. Adarsh further criticized director Om Raut, mentioning the dream cast and significant budget at hand but claiming that the film ended up being a mess. Such negative reviews added to the disappointment felt by the audience.
Despite the initial buzz, the total number of tickets booked for “Adipurush” in PVR and Inox outlets for both its Hindi and Telugu versions amounted to approximately 6 lakhs by Sunday. This figure was considerably lower than anticipated, further exacerbating concerns regarding occupancy levels, which remain 660 basis points lower than pre-COVID levels for FY23.
“Adipurush” had been slated for release across 5,000 screens in India on June 16, 2023, with ticket prices set at a premium level. However, considering Prabhas’ previous films like “Saaho” and “Radhe Shyam,” which fell short of expectations despite their scale, the underperformance of “Adipurush” was seen as a setback.While there were a few positive surprises, such as the recent release of “Zara Hatke Zara Bachke,” the momentum in the film industry has largely been driven by Buy One Get One Free (BOGO) offers, which negatively impact the economics of film production. The reduced share for distributors and producers, currently at approximately 30 percent, renders the economics of film production unviable.
The impact of disappointing reviews and low occupancy levels is reflected in the financial performance of PVR-Inox. In the fourth quarter ending March 31, 2023, the multiplex chain operator reported a net loss of Rs 333 crore. This setback, coupled with the underwhelming response to “Adipurush,” contributed to a 3 percent drop in PVR-Inox stock.
Artcile by PRITESH PATEL