Reliance Jio’s ‘first day, first show’ plan will be launched in the middle of 2020 for its premium Jio Gigafiber customers. Multiplex majors PVR and Inox have raised concerns over the plan.
Inox said that the proposed move made by Reliance Jio will risk a significant revenue stream for multiplexes as between 60-70% of the revenues of any movie comes from the domestic theatrical exhibition.
Multiplex majors PVR and Inox have raised concerns over Reliance Jio’s proposed plan of bringing ‘first-day first show’ movies on its Fibre powered set-top box.
Mukesh Ambani announced ‘Jio First Day First Show’ plan under which Premium JioFibre customers will be able to watch movies in their living rooms on the day of the release. This will be rolled out in 2020.
Commenting on the plan, PVR Cinemas in an exchange filing said, “For decades, the theatrical release window has been a valuable model for exhibitors and producers alike.
In India and globally, producers have respected the release windows and kept a routine gap between the theatrical release date & the date of release on all other platforms, i.e. DVD, DTH, TV, etc.
Shares of PVR Cinemas fell over 8% to Rs 1,345.25 per share while Inox shares were down 10% at Rs 270.95 per share.
As per FICCI report on India’s media and entertainment sector released in March 2019, out of the total Filmed entertainment revenues of Rs 17,450 crore in 2018, theatrical box office (worldwide) contribution was about 75% .
By: Abhinav Ranjan, Editorial Desk, DKODING Media