Slogan: “From Mega‑Plex to Micro‑Experience: The Future of Cinema in Malls”
Movie theatres aren’t dying—but their days of sprawling multiplexes may be numbered. As over‑the‑top (OTT) platforms continue to keep audiences at home, consistently empty auditoriums have mall developers rethinking the space they allocate to cinemas. Rather than dozens of screens, future malls will lean into fewer, high‑quality auditoriums, freeing up valuable real estate for dining, entertainment, and retail concepts that draw footfall. This seismic shift reflects changing consumer behaviors in a post‑pandemic world, marked by convenience, personalization, and experiential retail. In this in‑depth analysis, we explore how the multiplex model is evolving, what data underlies these decisions, and how both mall owners and cinema operators can navigate this new landscape.
The Changing Landscape of Cinema Consumption
Cinemas once reigned supreme as anchor tenants, drawing millions of patrons weekly. But the COVID‑19 pandemic accelerated a trend that had already begun: audiences gravitating toward the convenience of streaming. According to the Ficci‑EY Media and Entertainment Report 2024, box-office footfalls in India fell to 883 million, down 6% from 1.03 billion in 2019 :contentReference[oaicite:0]{index=0}. Meanwhile, OTT subscriptions jumped to 111 million, with revenues of ₹9,200 crore—an 11% increase year-on-year. As viewers discovered new formats and binging habits, multiplexes struggled to compete, especially on price: average ticket costs rose from ₹106 in 2019 to ₹134 in 2024, pricing out many patrons. Cinemas must now reimagine their role in the entertainment ecosystem, offering experiences that streaming cannot replicate.
The Rise of OTT Platforms
OTT services like Netflix, Amazon Prime, and Disney+ have reshaped entertainment. Viewers relish on-demand access, personalized recommendations, and ad‑free models. The pandemic only reinforced these habits: global streaming hours surged, making home the primary venue for first-run content. In India, the proliferation of affordable mobile data further democratized streaming. As Rajneesh Mahajan, CEO of Inorbit Mall, explains, “We’re seeing a preference for fewer screens but richer experiences—cinema as event rather than routine” :contentReference[oaicite:1]{index=1}. Multiplexes must now offer more than films: immersive sound, premium seating, and exclusive F&B to lure patrons from their sofas.
Mall Developers Reassess Cinema Space
Faced with underutilized cinema halls, mall operators are slashing the space allotted to multiplexes by 30–50% in new developments. “It’s market realities driving downsizing, not design,” says Amit Sharma, MD at Miraj Entertainment :contentReference[oaicite:2]{index=2}. Where megaplexes once boasted 9–17 screens, new malls opt for 5–7 high‑end auditoriums—large‐format, mid‑sized, and specialized. This frees up tens of thousands of square feet for restaurants, co‑working lounges, and experiential retail. In a typical 800,000–1,000,000 sq ft mall, screen area has shrunk from 50,000–70,000 sq ft (7–8%) to just 2–4% of total space, according to Cushman & Wakefield’s Saurabh Shatdal :contentReference[oaicite:3]{index=3}. The pivot reflects a broader shift: malls as lifestyle destinations, not just shopping centers.
Data on Screen Reductions
| Year | Avg. Screens per Mall | Cinema Space (% of Mall) |
|---|---|---|
| 2019 | 10–12 | 7–8% |
| 2025 (Projected) | 5–7 | 2–4% |
Fewer, High‑Quality Screens: The New Norm
Quality over quantity guides the new multiplex strategy. Mall owners and cinema chains are collaborating to create premium auditoriums—IMAX, 4DX, Dolby Atmos—with plush recliners, gourmet concessions, and VIP lounges. “It’s not about volume,” says Pushpa Bector of DLF Ltd. “It’s about delivering a memorable experience” :contentReference[oaicite:4]{index=4}. These specialized screens command higher ticket prices (often ₹1,000+), offsetting the reduction in screen count. Moreover, by clustering auditoriums and optimizing projection and seating technology, operators can reduce maintenance costs and boost per‐visitor spending on food, beverages, and merchandise.
Examples from Leading Mall Developers
- DLF Emporio, NCR: Reduced screens from 12 to 6; introduced a gourmet food hall and virtual reality zone. :contentReference[oaicite:5]{index=5}
- Inorbit, Mumbai: Downsized from 10 to 7 screens; added rooftop dining and interactive e‑sports arena. :contentReference[oaicite:6]{index=6}
- Nexus Select Trust, Pan‑India: Transitioning single‐screen cinemas to boutique auditoriums with co‑working spaces. :contentReference[oaicite:7]{index=7}
Space Optimization: Dining, Entertainment, Retail
With prime real estate freed up, malls are expanding F&B, entertainment, and retail offerings. Food halls, breweries, escape rooms, and pop‑up stores now fill former theatre wings. This “retailtainment” model drives longer dwell times and higher overall spends. A 2024 Anarock Retail report found that dine‑in footfalls grew 15% year‑on‑year, outpacing traditional retail at 8% :contentReference[oaicite:8]{index=8}. Malls that blend dining, shopping, and leisure create holistic destinations, mitigating the risk of any one segment’s downturn. Cinemas, meanwhile, remain key attractions but within a diversified ecosystem.
Shift Towards Experiential Retail
Experiential retail anchors the new mall blueprint. Virtual golf simulators, augmented reality art exhibits, and fitness studios complement traditional outlets. Brands like Cut‑put‑and‑Kiss Pop‑Up and themed dining concepts—Harry Potter Cafe, Marvel Kitchen—draw Instagram‑minded millennials. “We buy malls, we don’t construct,” notes Dalip Sehgal of Nexus Select Trust. “Repurposing theatres is challenging, but necessary to meet current demands” :contentReference[oaicite:9]{index=9}. Mall architects now integrate flexible spaces that can convert between cinemas, conference halls, and event venues, maximizing utility and resilience.
Box Office Struggles: Declining Revenue and Footfalls
Behind the spatial retrenchment lies sobering box office data. Hindi film collections dipped to ₹4,679 crore in 2024 from ₹5,380 crore in 2023—a 13% decline :contentReference[oaicite:10]{index=10}. Across all languages, total collections fell from ₹12,226 crore to ₹11,833 crore. Footfalls have yet to recover to pre‑pandemic levels: 883 million in 2024 versus 1.03 billion in 2019. Lower footfalls paired with higher ticket prices have squeezed revenue growth, prompting theatre chains to reassess their real estate footprints and negotiate new leasing models that reflect actual box office performance rather than guaranteed rentals.
Statistics on Revenue and Footfall
OTT vs Theatre: The Battle for Consumer Attention
Streaming platforms have made cinematic content available anytime, anywhere. According to the Ficci‑EY report, social media and online video consumption rose 18% in 2024, signaling shrinking windows between theatrical and digital releases :contentReference[oaicite:11]{index=11}. Exclusive content, immersive formats, and big‑screen spectacle are theatres’ chief defenses. However, unless studios maintain longer theatrical windows and invest in awe‑inspiring visuals (IMAX, 4DX), the convenience and cost‑efficiency of OTT bypasses will continue to erode multiplex patronage. Box office success now depends as much on theatrical exclusivity as on marketing and digital integration.
Trends in OTT Subscription and Viewing
India’s OTT market grew 11% in revenue to ₹9,200 crore in 2024, with subscribers hitting 111 million :contentReference[oaicite:12]{index=12}. Younger audiences—Gen Z and millennials—favor mobile and smart TV viewing, bingeing entire seasons. Platforms respond with regional content, interactive formats, and mobile‑only pricing. The result: theatrical releases compete not only with other films but with entire seasons of high‑budget series and viral short‑form videos. To win back viewers, theatres must transform screenings into exclusive events—star appearances, Q&A sessions, luxury ‘dine‑in’ auditoriums—ensuring that going to the movies feels special again.
The Future of Multiplexes: Luxury and Niche Experiences
While average multiplexes struggle, luxury and niche formats thrive. IMAX, Dolby Cinema, VIP recliners, and dine‑in lounges command premiums of ₹800–1,200 per ticket, catering to affluent patrons. Chains like PVR Inox and Cinepolis India are doubling down on these formats, refurbishing existing screens into boutique experiences. “Ticket prices may alienate some, but luxury formats will sustain multiplexes,” says Girish Johar, trade expert :contentReference[oaicite:13]{index=13}. This bifurcation—basic screens for cost‑conscious viewers, premium auditoriums for enthusiasts—could be the model that keeps cinema alive in malls.
Premium Formats: IMAX, 4DX, Recliners
- IMAX: Giant screens and proprietary sound systems, ~₹1,000/ticket.
- 4DX: Motion seats, environmental effects (wind, scent), ~₹900/ticket.
- Premium Recliners: Spacious seats, personalized service, ~₹750/ticket.
The Role of Single Screens and Regional Markets
While multiplexes consolidate, single‑screen cinemas—often family‑run—face closures across India. Regional markets without OTT infrastructure still rely on theatrical releases, but footfalls dwindle there too. Owners like Ashutosh Agarwal of Star World Cinemas now operate only 2–3 screens instead of 8–9, focusing on local blockbusters and revenue‑share models to stay afloat :contentReference[oaicite:14]{index=14}. In smaller towns, community screenings and festival events may provide lifelines, but the golden age of mass‑market single screens appears over.
Challenges in Tier 2 and 3 Cities
Tier 2/3 markets lack high‑speed broadband, but disposable incomes are lower, limiting OTT growth. Single screens must balance licensing costs and unpredictable box office returns. Innovative approaches—mobile pop‑up cinemas, local film festivals, educational screenings—offer potential, but require investment and marketing. Without support from studios and government incentives, many small‑town cinemas may succumb to the same space‑optimization pressures as urban multiplexes.
Negotiating Terms: Revenue Sharing vs Fixed Rent
As occupancy declines, cinema operators push for revenue‑sharing leases rather than fixed rents. “We cannot guarantee box office performance,” warns a multiplex executive :contentReference[oaicite:15]{index=15}. Mall owners, however, seek stable income, preferring minimum guaranteed rents. The middle path—dynamic leases that blend base rent with a percentage of ticket sales—may emerge as the industry standard. Such arrangements align incentives: developers benefit from high footfall, and chains share in upside without undue risk.
Industry Perspectives on Leasing Models
“A hybrid lease—fixed base plus revenue share—strikes the right balance. It protects developers while giving cinemas breathing room.”
Frequently Asked Questions
- Q1: Why are malls cutting cinema space?
- A1: Declining footfalls and rising OTT consumption have made large multiplex footprints unviable. Malls now allocate 30–50% less space, focusing on fewer, premium screens and experiential retail :contentReference[oaicite:16]{index=16}.
- Q2: How much cinema space did malls allocate pre‑pandemic?
- A2: Pre‑pandemic, cinemas occupied 7–8% of mall area (50,000–70,000 sq ft in a 1 million sq ft mall). This is projected to shrink to 2–4% in new developments :contentReference[oaicite:17]{index=17}.
- Q3: What alternatives are malls exploring?
- A3: Expanded dining, entertainment (VR, e‑sports), conference halls, and D2C pop‑ups are replacing large cinema wings to drive footfall and revenue diversity.
- Q4: Can multiplexes survive this shift?
- A4: By investing in premium formats, enhancing F&B, and negotiating flexible leases, multiplexes can remain integral to malls—albeit in smaller, more curated form.
Conclusion
Slogan: “Cinematic Evolution: Small Screens, Big Experiences”
The era of mega‑multiplexes is giving way to a more nuanced model: fewer screens, higher quality, and integrated mall experiences. As developers carve out space for dining, retail, and entertainment, cinemas must up their game—luxury auditoriums, immersive formats, and dynamic leasing—to stay relevant. While the writing is on the wall for traditional multiplex models, the future remains bright for those who adapt. Cinemas will endure not as sprawling complexes but as curated experiences that justify the trip to the mall, reminding audiences why nothing beats the magic of the big screen.
