Film industry jittery over cinema shutdown orders

Due to an increase in COVID-19 cases following the reports of the Omicron variant, the Delhi government issued a 'yellow alert' on Tuesday, ordering schools, colleges, cinemas, and gyms to close, among other restrictions. The closure order has made the film industry jittery as it came at the most inopportune hour; the industry was just limping back to normalcy after a prolonged lockdown. Movie theatres, which were shut down for the major part of the pandemic, had just resumed normal operations in most regions of the country.
The release of Shahid Kapoor-starrer Jersey, scheduled to be released on December 31, has been postponed. In addition to Rajamouli’s RRR, and Prithviraj, other major releases scheduled to be released during the first quarter of 2022 are Jayeshbhai Jordaar, Radhe Shyam, Attack, and Gangubai Kathiawadi. The fate of all these movies now hangs in balance.
The Multiplex Association of India has expressed concern over the shutdown orders.

Kamal Gainchandani, President, Multiplex Association of India, said: "The Delhi government’s decision to shut down cinemas in Delhi while enforcing the ‘yellow’ alert of the Graded Response Action Plan (GRAP) has caused massive uncertainty and could lead to irreparable damage for the Indian film industry. The period since March 2020 has been undeniably the most challenging period faced by Indian cinemas in their long history. After being allowed to reopen, cinemas have already demonstrated an ability to operate safely for the public and employees via the usage of enhanced ventilation systems, enhanced hygiene, and other safety protocols. Not a single outbreak of COVID-19 anywhere around the world has been traced to a cinema."

"While we fully understand the need at government’s end to take necessary preventive measures, we would request that cinemas should get equal treatment with comparable industries and institutions. Instead of closing the cinemas, we would urge the Delhi government to consider introducing a “double vaccination requirement” to enter cinemas, as is the case in some of the other states (including Maharashtra). Alternatively, the seating capacity restriction of 50% can be reintroduced at cinemas. We call on the government to recognise the unique social, cultural and economic value of the Indian film industry, and to provide the support it so desperately needs to survive this unprecedented period," he added in his statement.

Prashant Kulkarni, CMO Carnival Group commenting on the shutdown, said: "The news of Delhi announcing the shutdown of cinemas, malls and gyms is unfortunate but people's health is the top priority and if the government has taken a call, we stand 100% by it. We sincerely hope it is a short passing phase and soon we will be up and running again as we follow all SOPs and safety measures to the tee."

About cinemas being shut down, analyst Karan Taurani, Senior Vice President, Elara Capital, said: “The above will basically delay the recovery path for exhibitors; we believe even if one state were to shut down cinemas, it will be a big negative as this is unlike a restaurant wherein few outlets can be open; and revenue loss for a particular state is a permanent loss, we saw that in the case of Bell Bottom which was not able to pick up even after releasing in May later. We don’t expect valuations to breach or go below Mar’20 levels as the situation may be able to reverse also sharply; just as we have seen unlock post wave two was much faster as compared to wave one and given the low severity of the variant, for now, similar could be the case for exhibitors. Exhibitors also have a healthy cash balance post the capital raise rounds last year, can sustain for the next 6M even if there is a complete shut down for cinemas for the next 2-3M (highly unlikely for now)."