PVR, Inox merger leads to concerns among movie audience
- IndiaGlitz, [Monday,March 28 2022]
On Sunday, PVR and Inox announced a merger, bringing together their strength of more than 1500 screens. As per an official statement issued by Inox, the merger has resulted in a share exchange ratio of 3 shares of PVR for 10 shares of INOX.
Meanwhile, movie audiences are a bit concerned about the resultant monopoly in the exhibition sector. Many Netizens are wondering if the cost of snacks is going to go up now. Stand-up comic Atul Khatri quipped, PVR & Inox merge to create the largest multi-screen player in India. They have also decided to merge the price of popcorn so now a tub of salted popcorn will cost Rs. 720/- (360 + 360).
But the fears may be unfounded and the jokes exaggerated. The prices of cinema tickets are controlled by the state authorities. As for snacks, beyond a certain threshold, the consumer's absorption capacity goes down disproportionately, resulting in fewer footfalls over the short to medium term. Keeping everything in mind, multiplexes will have to maintain sensible levels.
Then there are concerns over the monopoly trying to arm-twist the film industry. The merger of Inox and PVR is not good for the film trade. A monopoly market is never good for business. Producers should encourage standalone multiplexes and single screens, wrote Harsh Jain, who is associated with the film industry.
On its part, the Inox-PVR duo said, With two iconic brands coming together, we aim to create value for all our stakeholders and take the Indian cinema exhibition industry to newer heights.