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Ticket tax fuels Indian cinema strike
Cinemas in Mumbai, Bollywood’s homeland are striking against high taxes on ticket sales.
Owners of Mumbai’s single-screen theatres will keep their shutters (百叶窗) down until Friday to protest about taxes, which they say are driving them out of business.
More than a third of single-screen cinemas in the state of Maharashtra have closed down in the last five years. According to the Cinema and Exhibitors Association of India, just 700 are still in operation. The association blames the closing down on Maharashtra’s high rate of entertainment tax. Its president, R V Vidhani, says that cinemas must pay a tax for every ticket sold, which is 45%, and this makes it hard to break even. It’s the highest of all states across India. The majority of the states in India pay zero entertainment tax. Mr Vidhani says his members had decided to go ahead with a one-week closure after getting no response from the state government on the matter.
It is not just a high tax rate contributing to the shrinking（收缩）number of traditional cinemas, however. Large costs and declining box office takings also make times tougher.
Mr Vidhani has run the New Excelsior Theatre in South Mumbai since 1974. Last week a screening of Bollywood movie Tanu Weds Manu sold just 71 tickets despite a capacity of more than 1,000. Whether it’s a full house or an empty screening, running costs are more or less the same. “Air conditioning, regular business — every expenditure (支出) is the same, but the income has stopped.”
The cricket (板球) World Cup is not helping matters, according to Mr Vidhani. “The World Cup is creating the biggest problem,” he says. “These people are crazy so far as the cricket is concerned. When India is playing, occupancy in the theatre is just 15%.”
Mumbai’s city centre is dotted with empty cinemas.
So after remaining empty for six years, the Novelty theatre is perhaps more fortunate than its neighbours: it is to be reborn as a four-screen multiplex cinema.
Over the last decade the number of multiplexes in India has risen sharply. Despite higher ticket prices, with more choice on offer and typically newer facilities they pose fierce competition to the traditional single-screen theatres.
“Competition from the multiplexes is really tough,” Mr Vidhani says. “Then there is competition from the movie window being narrow. Movies are being released much quicker on television than they used to be so people can pretty much watch movies for free at home.
“With rising incomes, everyone’s going out and buying DVD players or VCD players. Content is available for the asking whether it is official or pirated(盗版).”
Unless single-screen theatres can become special destinations in their own right, while also offering up-to-date facilities, Jehil Thakkar thinks the decline is a trend that will continue, especially as multiplex cinemas spread to smaller towns.
“They are large corporate chains,” he says. “They have the ability to spend money on branding and advertising, so to a large extent the small cinema guys are fighting a losing battle.”
Ticket tax fuels Indian cinema strike
The current (1) ▲ of cinema business in Mumbai
| ● Many single-screen cinemas are (2) ▲ .
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The causes of the closing down of cinemas
| Cinemas in Mumbai have to pay a tax (3) ▲ than any other places in India.
It costs a lot to (4) ▲ a cinema whether it’s a full house or an empty screening.
The occupancy is (5) ▲ by people’s enthusiasm for cricket.
Single-screen cinemas are (6) ▲ with competition from multiplex cinemas, which offer more choices and (7)▲ facilities.
A quicker release of movies on television is to (8) ▲ .
People prefer to watch DVD or VCD rather than go to the cinema.
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The (9) ▲ of single-screen cinemas
| The trend of decline will continue.
Single-screen cinemas are certain to (10) ▲ the battle.
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