Status and Support Policies of Single-Screen Theaters in India

Long queues stretching since morning to get tickets for a popular movie, fans visiting the theater multiple times just to see their favorite stars on screen, and audiences dancing and whistling in thousand-seat single-screen theaters—these scenes used to be a regular part of theater culture in India. For a long time, cinema in India faithfully played the role of almost the only form of mass entertainment. The Indian people's love for movies is so immense that when masala* films started gaining popularity in the 1970s and established themselves as the representative genre of Bollywood, the action film Sholay (1975) gained nationwide popularity and remained in theaters for an astonishing five years due to repeated viewings. The iconic romance film Dilwale Dulhania Le Jayenge (The big-hearted will take away the bride) (1995) continues to screen in theaters even after more than 20 years, supported by devoted fans.

*Masala films: A genre that blends multiple genres—action, comedy, romance, drama, or melodrama—within a single movie. The term is derived from the Indian spice mix “masala.” Originating in Hindi films of the 1970s, it is commonly seen in Bollywood and South Indian cinema.

However, such passionate scenes in Indian theaters have become a thing of the past. With the spread of satellite TV and home video, the status of theaters declined, and entering the 2000s, the rise of multiplexes in major cities gradually transformed the theater landscape.

Once places where people could dance and enjoy themselves while watching their favorite actors on the big screen, theaters began to change into modern venues located in multiplex shopping malls with the latest facilities. As this happened, the audience's style of engagement shifted from participatory to observational. Multiplexes located in malls with infrastructure such as parking lots and food courts began to take root as new cultural complexes, while the past glory of single-screen theaters began to fade. In the 1990s, there were about 25,000 single-screen theaters, but over the past 30 years, their number has significantly declined to around 6,000, many of which are now struggling to survive due to the impact of COVID-19.

The decline of single-screen theaters due to the rise of multiplexes is noticeable not only in rural areas but also in major cities. This is partly because theaters themselves are concentrated in urban areas. In India, many rural regions lack even small theaters. Despite having a population of 1.4 billion—the largest in the world—the number of screens in India is less than 10,000. In comparison, China, with a similar population, has over 86,000 screens. Even compared to South Korea, which has over 4,500 screens for a population of 50 million, India has a serious shortage of theaters per capita.

As a result, the Indian government is actively working to support single-screen theaters and establish new theaters in rural areas in an effort to increase the number of screens and reduce cultural disparities between regions.

Audience Numbers in India (2018–2023) (Unit: million) 

<Source: #Reinvent, India Media & Entertainment sector is innovating for the future, March 2024.>

Status of Single-Screen Theaters in India

According to research conducted by former cinematographer Hemant Chaturvedi, there were about 25,000 single-screen theaters in India in the 1990s, but that number has since dropped to fewer than 6,000. It is now common to see articles about single-screen theaters closing down, as dwindling audiences mean that revenue often falls short of maintenance and operational costs. The once-packed 1,000-seat theaters, which had people waiting in line for tickets, now have only around 10 people sitting under dilapidated ceilings on worn-out seats—a situation not uncommon across the country.

Back in 2009, there were about 9,700 single-screen theater screens, while multiplex screens numbered just over 900, meaning single-screen theaters outnumbered multiplex screens by tenfold. Over the next ten years, the number of single-screen screens dropped by 35%, while multiplex screens increased by a staggering 345%. This growth was driven not only by the expansion of chain-operated multiplexes but also by many large single-screen theaters in cities converting to multiple-screen setups as a survival strategy.

However, this solution had its limits. Urban single-screen theaters could convert to multiplexes by installing high-resolution digital projectors and upgrading facilities, but small, family-owned rural theaters lacked the financial means to remain competitive through renovations and thus remained in a deteriorated state.

To make matters worse, the spread of COVID-19 pushed single-screen theaters to the brink. In India, theater closures lasted more than eight months in some regions, forcing theaters to endure their most difficult times. Theaters were only allowed to reopen after October 15, 2020, following the government’s standard operating procedures (SoP) for cinemas. In fact, even before the pandemic, hygiene and maintenance were major issues for nearly all rural single-screen theaters. Staff reductions due to low attendance led to poor management, and rural theaters survived as cheap, run-down venues frequented by lower-income audiences.

Under such conditions—where sanitation and social distancing protocols were emphasized—single-screen theaters suffered more than multiplexes. Adhering to the government's standard operating procedures was an immense burden. While theaters bore the cost of compliance, the rapid growth of OTT platforms during the pandemic established new ways of movie-watching, leading to more selective theater-going and a noticeable decline in audience numbers.

In 2023, theater attendance was only 900 million, a dramatic drop from the nearly 1.5 billion pre-pandemic, reflecting the shift in the film industry landscape driven by the rise of OTT platforms. There were also regional differences in screen numbers and audience sizes. As a multilingual nation, India’s film industry is developed around regional languages, and the theater industry follows suit.

Support Policies for Single-Screen Theaters

The Indian government has sought solutions to the decline of single-screen theaters by supporting facility improvements and multiplex conversions, offering tax incentives to enhance competitiveness. After COVID-19 severely impacted theater revenues, several state governments implemented support policies such as tax cuts and reduced electricity rates.

Kerala was the first state to reduce fixed electricity charges by 50%, allowing the remaining amount to be paid in installments. It also allowed property taxes due to local governments before March 31, 2020, to be paid in installments. In April, the state of Andhra Pradesh waived fixed electricity charges for April 2020 (during the national lockdown) and deferred payment of fixed electricity charges for six months from July to December 2020.

Nevertheless, a significant number of theaters with halved audiences due to the COVID-19 crisis faced extreme financial difficulties and were forced to close.

Conclusion

Indian theaters have continually evolved alongside the development of film production and distribution, playing a crucial role in the growth of Indian cinema as a mass medium. From the era of film projectors to today's digital screenings, the digitization of cinema—accelerated by the pandemic-induced theater closures and the rise of OTT platforms—has transformed the way audiences watch movies.

Despite a general decline in theater attendance, India’s box office reached a record high last year, with several blockbusters reviving interest in the cinema. However, 2024 has seen fewer hits, underwhelming performance overall, and the postponement of anticipated releases to the second half of the year. As a result, some theaters have temporarily closed, citing the lack of viable content.

Still, regional variations are significant. For example, the Malayalam film market saw multiple hits early in the year, surpassing last year’s performance and underscoring the renewed importance of quality content. It’s true that more single-screen theaters are at risk of closing. The central question for the future of theaters is how to bring back audiences whose viewing habits have changed due to outdated facilities, lack of good content, and the rise of OTT.

As the government pushes to support aging theaters and build new ones in rural areas to reduce the urban-rural cultural divide, there's hope that movie audiences—once concentrated in cities—will begin to spread across the country.

The detailed report on <KOFIC Correspondent Report 2024_Vol.35: Status of Small and Regional Theater Chains in Indonesia> can be found on the Korean Film Council’s policy research bulletin board.

Written by Han Ah-reum, Indian Correspondent for the Korean Film Council

KOFIC Correspondent Report Original Text (Click)