India’s two largest multiplex companies, PVR and INOX Leisure, said on Sunday that amid the recovering Indian entertainment industry after the Covid-19 induced pandemic, they would merge to create a giant cinema operator with over 1,500 screens across 109 cities in India.
PVR and INOX Leisure said that the merger, which is dependent on the regulatory approvals, would help both the firms improve their efficiency while reaching newer markets and optimizing costs.
“The film exhibition sector has been one of the worst impacted sectors on account of the pandemic and creating scale to achieve efficiencies is critical for the long-term survival of the business and fight the onslaught of digital OTT platforms,” said Ajay Bijli, the Chairman of PVR, in a press release.
OTT platforms (Over-the-top platforms) such as Netflix, Amazon’s Prime Video and Disney have made deep inroads in the India entertainment space, at a time when the Covid-19 pandemic almost destroyed an entire industry that is well recognized for its song and dance spectacles and is watched by millions.
PVR (Priya Village Roadshow) is the largest multiplex chain in India with over 850 screens, and is closely followed by INOX Leisure with more than 650 screens.
The merger is subsequent to the previous two years when almost all the theatres remained completely shut owing to the Covid-19 induced pandemic, which followed strict restrictions and lockdown.
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