Impact Of Corona on Bollywood: The Losses and The Light at the end of the tunnel.

There has been a Huge Impact Of Corona on Bollywood just like every other Industry.


Impact Of Corona on Bollywood: People Sitting at their homes, closed theatres, stalled shoots, and no clarity as to When Lives will return to normal.

Impact Of Corona on Bollywood: Direct Revenue

In March 2019 Alone The Nett Box office Collections were Rs. 479.35 Crores With Films Like Kesari, Total Dhamaal, collecting above Rs. 150 Crores. And Films Like Luka Chupppi, Badla, and Captain Marvel just missing the Rs. 100 Crore Mark.

April 2019 was even better than March Where The Nett Box Office Collections were Rs. 549.91 Crores and It was the same Month when Avengers Endgame Demolished Records at the Indian and Worldwide Box Office. Although Bollywood did not have any major grosser this month.

These two months alone had an overall Nett impact of 1029.26 Crores at the ticket window alone. But the Story Does Not End There.

Impact Of Corona on Bollywood: Indirect Revenue

The Satellite Rights alone in March – April 2019 were more than 300 Crores and Another 160 Crores plus in Digital Rights, While Music Rights Contributed almost 100 Crores.

The income from ads and alliances was almost 100 crores which takes the indirect revenue losses to Rs. 660 Crores and Total Revenue losses to Almost 1700 Crores. We are not considering an overseas business for this article.

Impact Of Corona on Bollywood: Taxes Paid to Government

In Terms of GST Collections, we can directly put a 12% average on the overall ticket sales of 1029.26 Crores and 18% on 660 Crores which comes to Rs. 123.51 Crores of Tax Loss from Direct Box office Collections and another Rs. 118.8 Crores on GST losses to the government for other rights.

Then Further there’s a loss of Tax in Income Tax. These taxes number may seem very small but there is a huge battery of Man Power which is Employed behind the scenes.

Impact Of Corona on Bollywood: Behind the Scene Manpower

The Mother Body of all Indian Cinema Association i.e. Federation of Western India Cine Employees (FWICE) has half a million members in 2018 and this number right now would be even higher. There are 21 affiliated associations to this body.

All these people will be right now struggling to even meet their basic needs.

Impact Of Corona on Bollywood: The People Serving you at the Theatres

There are around 6600 Screens we are talking about and each of the screens needs at least a Staff of 9 people on an average to take care of the Cleaning, Serving, Security, and various other needs of the cine-goers.

There are other businesses who are employed and depend on theatres to pay their workers like Samosa’s You Eat, The vendors and service companies of the machines which serve you Cola, and so many other things.

Additionally, Theatres generate a Huge Revenue from Ads and Food Sales and a Benchmark would be around 60% of the overall ticket sales. The Overall ticket sales in this case with the Nett + Taxes, Which will be Rs. 1152.77 Crores. The losses from this to theatre owners work to around 650 Crores.

in fact, there will be theatres and Cinema Chains who will find it hard to keep the Manpower going and they will be left with no option but to ask Employees to either Go on a Reduced payscale or go on leave without pay if this continues for more than a month.

Impact Of Corona on Bollywood: Miscellaneous People

Have you ever wondered that suddenly a film starts trending on Twitter and all the influencers almost post similar content about the movie on the day of its release, the Blue ticks have almost a similar time of posting their reactions, as against the general perception this is not done by PR companies but this is done by Digital Agencies.

Then comes the PR Agencies which arranges press conferences or get articles planted in various articles about a movie or a Star. Further to this, there are outdoor agencies which take care of things like hoardings, etc, which again is manpower intensive.

There are Big sites that survive on money from producers for paid articles or for direct ads on their websites. In short, this chain is Huge.

The impact on Revenue which works close to 2000 crores if we add up the food and ad revenues and consider that things will not improve for the next 45 days. And there’s a huge loss of employment here, especially for the indirect employees.

Impact Of Corona on Bollywood: Light at the End of the Tunnel

The first two movies which will welcome us at the theatres will be surely Baaghi 3 and Angrezi Medium as both these movies had huge demand left and they were impacted by the arrival of COVID 2019 in India.

Then we have movies Like Sooryavanshi and 83 which should ideally be the immediate new releases. There’s no doubt that this will be the year of big clashes as no producer can delay their investments any further due to the interest factor of the money.

But, there will be a lot of Latent Demand which will come into play and full effect when the Population is Convinced that visiting a theatre will not make them prone to COVID 19 infection. And right now no film can judge that, but the first 3-5 new releases after this confidence of people are all set to earn up huge.

By the end of this Lockdown, people would be just fed up and will be looking for more and more Entertainment in their lives. But again this can only happen if they are sure that they will be safe from COVID 2019. 

So For example, let’s say that If Sooryavanhi is one of those Releases which gets the timing right then the box office potential simply goes up by at least 100 crores and figures will surprise everyone.

The World and Independent India has never witnessed a Pandemic Like this and right now it’s hard to say about the confidence part of the audience.


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