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What was the reason for the merger of PVR and Inox? The rise of OTT platforms holds the key to the solution

PVR Limited and INOX Leisure Limited have announced a merger that would result in a massive cinema operator with over 1,500 screens spread across 109 locations.



With PVR now running 871 screens across 181 properties in 73 cities and INOX currently operating 675 screens across 160 properties in 72 cities, the merged organisation would be India’s largest cinema exhibition company, with 1546 screens across 341 locations in 109 cities.

According to PVR, the combination would bode well for the growth of the Indian cinema exhibition industry, as well as ensure tremendous value creation for all stakeholders, including customers, real estate developers, content producers, technology service providers, the state exchequer, and, most importantly, employees.



During the Covid-19 outbreak, when cinemas were shuttered, over-the-top (OTT) companies with huge wallets, including Amazon Prime Video, Disney-Hotstar, and Netflix, made significant gains in India and currently have a sizable subscriber base.


While addressing the challenges provided by the proliferation of OTT platforms and the aftereffects of the pandemic, the merged business will also seek to bring world-class movie experiences to customers in Tier 2 and Tier 3 regions, according to PVR.

The film exhibition industry has been one of the most hit by the epidemic, and scaling up to create efficiency is vital for the long-term viability of the firm and combating the assault of digital OTT platforms. Chairman and Managing Director Ajay Bijli of PVR said.