Even as the Central government is considering requests from various quarters to allow movie theatres to function as part of the next phase of lifting of restrictions, theatre owners in the State are not very enthusiastic about the idea. Exhibitors’ organisations and other film bodies are of the opinion that opening of theatres in the current situation is not practical and profitable.
The cinemas in the State were closed on March 11, almost two weeks before the national lockdown. With every passing month of the theatres remaining non-functional, losses began to mount. Quite a few of the theatre owners have pending loans, due to upgrades or complete overhaul of the theatres. Yet, not many are ready to risk opening the theatres now.
According to M.C. Bobby, general secretary of the Film Exhibitors’ United Organisation of Kerala, opening of the theatres without at least 40 or 50% occupancy would be a loss-making proposition.
Big releases unlikely
“Whether we decide to open or not depends upon the kind of conditions that the State government would put forth. If they restrict the occupancy to 30%, as is being discussed now, with seating in alternate seats and rows, it might be hard for the owners to make any profit. The big releases will be held back until the situation stabilises. The first two months will then be filled using older films or films with lesser known stars,” says Mr. Bobby.
As a condition for opening, the exhibitors’ bodies have put forward various suggestions to the government. The major suggestion is regarding a reduction in the Goods and Services Tax (GST) on tickets, with no GST for ticket prices till ₹100 (now at 12%), 12% GST for ticket prices between ₹100 and 200 (now at 18%) and 18% GST for ticket prices above ₹200. Another demand is for exemption from entertainment tax at least for a fixed period. Exemption has also been sought on cess for the Cultural Activists Welfare Fund Board.
Huge power bills
The owners of bigger theatres with high tension lines have been paying a monthly fixed electricity charge of ₹60,000 to ₹80,000, while the owners of the smaller theatres with low tension lines have been paying ₹16,000 to ₹25,000 in fixed charge, during the lockdown period too. The exhibitors’ organisation has also sought a relaxation on this, as well as the recent minimum wages law.
“As of now, none of the theatre owners have even thought about opening the theatres. Even the producers will not be ready to release the big films in such a scenario. Now, even if the government allows 50% occupancy, it remains to be seen whether the public would be ready to venture out for film shows, at a time when people are not even seen on the roads” says Gireesh, who runs the Sree Padmanabha theatre in Thiruvananthapuram.
