It appears that at least some portion of people have moved towards OTT, these are not metro folks or the folks from cities where theater chains exist. The people who visit these theaters, who don’t think about the high prices of F&B are different, and they will exist, but I think, one question that can be asked is, are these patrons regular moviegoers or visit occasionally, if they visit from time to time, will the gap be filled with ordinary folk, who stay away from F&B, and are visiting to have a pleasant theater experience, also due to discounts of some sort (if any). Sales will give the clarity and judgement, of course.
The last 8 quarters’ sales are not smooth, maybe because of content not good enough, I don’t know, maybe they will pick up with high profile releases, I don’t know.
One complaint that I have come across are the charges of F&B. If indeed they make a hole in the pocket of who are complaining, I am sure, they will control their hunger or thirst and not shell out for F&B, which looks like form a major share in the revenue. Or maybe who watch here don’t mind these prices. My point is that, ticket sales may increase, but I am not sure of the F&B sales.
And as for the long term is concerned, if big size TVs become affordable, and a more faster internet reaches every household, maybe more and more people will have the theater experience from their homes. Unless one is dying is see something in particular, for the most part, this is just entertainment. Even if it is not understandable, being a foreign language it is entertaining, and if the content is available in regional languages, entertainment even from Hungary will suffice. So, technology has the power to change this consumption, which is not necessarily the case with something like FMCG.
No position, just some thoughts.
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