PVR & INOX Merger and the OTT Threat
Sumit Saha
Dayananda Sagar Business School (DSBS), Bangalore, India
Volume 18: 2023, pp. 345-356; ABSTRACT
COVID changed the landscape of many industries and normal business patterns. PVR and INOX were two giants in the Indian media industry. During COVID the declining pattern of footfalls in the theatres and increase in OTT platforms subscribers threw a challenge to the media industry. They had to revive their businesses by changing normal practices. The merger of these two giants was an extremely out of the box decision and the post-merger financial results proved that the decision was right. This case analyses on the one hand how the upper level cinema experiences (like 3D, 4DX, recliner seats, sofas) were enabling high-value transactions in theatres and driving profitability, and on the other the increasing subscriber base for various OTT platforms. It also analyses the changing need for Indian media business from the age old theatre system to better suit the modern consumers and move towards the rich content based OTT platforms.
Keywords: multiplex, cinema industry, competition, monopoly, M&A
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