IMAX India box office falls 36% in 2024 amid Hollywood delays, local challenges

In 2023, IMAX theatres earned $23 million.

While the Hollywood line-up lacked big tentpole releases, as the writers’ and actors’ strike in 2023 over minimum pay and safeguards against artificial intelligence led to a delay in several big titles, local language hits were few in number, restricted to the likes of Allu Arjun-starrer Pushpa 2: The Rule and mythological science fiction epic Kalki 2898 AD.

Multiplex chains and OTT clashes

Also, IMAX is losing business given the standoff between multiplex chains and southern film producers over OTT window. National multiplex chains that aren’t fans of movie producers in southern India releasing their films on streaming platforms early have been refusing to screen those movies in the Hindi belt, resulting in fewer titles for premium formats like IMAX in north India where most of its screens are.

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That said, IMAX referred to India as one of its highest priority markets, and the eighth highest grossing market globally in 2024, besides having ranked in the company’s top 10 markets consistently since 2021.

“The past year hasn’t been as good as 2023. There are certain things we can’t change, such as box office of films in general or behavioural habits of people. But we can make a dent when it comes to format. There is a clear indication to show that there is a preference to watch films on large and premium formats and IMAX stands on the top end of that trend,” Preetham Daniel, vice-president, theatre development, IMAX- India, south east Asia, Korea, Australia and New Zealand, told Mint in an interview.

The company that released 10 Indian films last year, similar to 2023, believes people prefer IMAX over other regular formats. “The television screens in our homes are getting so much better, and people don’t see the need to go out and watch a movie on a regular screen. If they’re coming out and buying a ticket, they want some kind of grandeur because everything else becomes a comparison to what they have back home. So it’s important to bring people out of the house and offer premium experiences. This is what sells today. It has been proven post-covid that people don’t accept mediocre offerings, they want the best of the best,” Daniel added.

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Focus on premium

Entertainment industry experts point out that premium formats such as IMAX and 4DX have been trying to expand their footprint in India for a while, but there aren’t enough movies to keep the screens running for even half of the year. Most IMAX and 4DX movies are Hollywood films which are released occasionally, and cinemas hosting these formats are forced to screen them for longer or screen even regular movies.

Daniel admitted challenges arose from the fact that Hollywood didn’t have much of a content line-up in 2024, which should ease in 2025 with the release of Captain America: Brave New World, Snow White, Thunderbolts, Mission: Impossible- The Final Reckoning, Superman, The Conjuring 4 and Avatar: Fire and Ash, among other offerings.

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The other big challenge is that multiplex chains and film producers are clashing over early releases of southern-language movies on video streaming platforms, as a result of which many southern movies aren’t released by national chains in the north, leaving premium cinema formats like IMAX—and fans—to suffer the consequences.

Expansion plans

“Windowing between south and north is a concern. There is an argument on both sides and we respect that. Every region has some challenges and we have to navigate those. Having only 30-odd screens doesn’t give you a say or voice in the industry. We’re focused on making sure IMAX is profitable and giving the audience what they need,” Daniel said.

To be sure, IMAX that opened six new screens in 2024, and entered markets such as Surat and Kochi, is looking at tier-II and tier-III towns as a major area of focus. The company that currently operates 34 screens in India had set out a 100-screen target in 2023, to be met over the next five years.

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“We want to develop hard in tier-two markets, and we’ll be focused more on growth there. We’ve come a long way and hopefully we can keep the same traction over the next two to three years. The appetite to grow hasn’t changed, and it’s much more feasible to get into a tier-two and tier three locations today pricing-wise,” Daniel said. He added that the big challenge is one of malls and infrastructure which often take time to fall in place, though the willingness to open by multiplex partners continues to be there.