Shares of PVR Limited fell over 8 per cent while Inox Leisure slumped over 10 per cent a day after Reliance Industries Chairman and Managing Director Mukesh Ambani introduced a concept of watching new movies on its yet to be launched JioFiber service. "Premium JioFiber customers will be able to watch movies the same day these movies are released in theatres," he said at the Reliance Industries' 42nd annual general meeting in Mumbai. Country's cinema chains PVR and INOX Leisure raised concerns over the proposed launch of Reliance's 'First Day-First Show' plan.
In their statements, PVR and INOX emphasised the growth potential of theaters for the film industry how it's different from watching at home. "In India and globally, producers have respected the release windows and kept a sacrosanct gap between the theatrical release date and the date of release on all other platforms," PVR said in a press release.
Inox said that the exclusive theatrical window is a model that is followed internationally, in order to ensure the robust financial viability of all the segments of the sector, and has been replicated in India.
"The theatrical exhibition industry, led primarily by the multiplex industry, has made
significant investments in world class cinema theatres, by bringing in state of the art
technology, luxurious ambience, bespoke comfort and unmatched service, ultimately
curating an experience which can never be matched by watching movies on television screens at home," Inox Leisure said.
On the National Stock Exchange (NSE), PVR shares opened lower at Rs 1,422.60 apiece and dropped to as much as Rs 1,345.25 apiece by afternoon, marking a decrease of 8.25 per cent. On the Bombay Stock Exchange (BSE), the PVR share price declined as much as 8.21 per cent to touch the Rs 1345.80 mark at the day's lowest point.
On the other hand, shares of Inox Leisure opened lower at Rs 293.10 apiece and declined to as much as 10.11 per cent on the NSE. On the BSE, the Inox share price fell as much as 9.89 per cent to hit the Rs 271.00 mark at the day's lowest point.
At 12:28 pm, Inox shares traded 2.07 per cent lower at Rs 295.20 apiece on the NSE. On the BSE, the shares of the cinema chain traded 3.13 per cent lower at Rs 295 apiece. Meanwhile, the shares of PVR traded 3.13 per cent lower at Rs 1,420.30 on the NSE. On the BSE, the shares of PVR traded 3.39 per cent lower at Rs 1,416.60.