Pre pandemic — China sold 170 Cr movie tickets. India sold 100 Cr tickets.
2023 — The admissions (ticket volume sale) has almost fully recovered in India. China has some catching up to do, but is still a lot higher than India.
Despite producing ~50% less movies than India, China box office collection is 5x that of India today — inline with GDP per capita
Single screens have reduced overtime and continue to go out of business. Multiplex screens with scale benefit continue to increase.
South has a large proportion of single screens vs other regions.
Movie exhibitor PVR INOX — with the highest box office share — is focusing on the South to take share away from single screens.
However, theatrical windows (time between when a movie is released and when it appears on video streaming platforms) shortening is a key risk to box office sales.
Moreover, South Indian movies have a 4 week window vs 8 weeks for Bollywood and Punjabi movies.
My analysis and valuation of PVR INOX is present in the videos at this link:
𝗔𝗻𝗮𝗹𝘆𝘇𝗶𝗻𝗴 𝗮𝗻𝗱 𝘃𝗮𝗹𝘂𝗶𝗻𝗴 𝘁𝗵𝗶𝘀 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 𝗶𝘀 𝗮 𝗴𝗼𝗼𝗱 𝗲𝘅𝗲𝗿𝗰𝗶𝘀𝗲 𝗳𝗼𝗿 𝗮𝗻𝘆 𝘀𝘁𝘂𝗱𝗲𝗻𝘁 𝘀𝗶𝗻𝗰𝗲 𝘆𝗼𝘂 𝗴𝗲𝘁 𝗲𝘅𝗽𝗼𝘀𝘂𝗿𝗲 𝘁𝗼 𝗺𝘂𝗹𝘁𝗶𝗽𝗹𝗲 𝗰𝗼𝗻𝗰𝗲𝗽𝘁𝘀 (that I talk about and explain in my video) — 𝗮𝗹𝗹 𝗶𝗻 𝗼𝗻𝗲 𝗰𝗼𝗺𝗽𝗮𝗻𝘆.
P.S: A good investor friend had asked me to look at PVR INOX a few months ago. I had tabled his suggestion aside since I had not been to a theatre in 5 years and + this business operates at low utilization. I looked at this business only after I watched Stree 2 in theatre 4 weeks ago and kicked myself for not heeding to his suggestion.
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gl62az