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New guidelines offer some cheer for cinema advertising

By M4G Bureau - January 28, 2021

Starting February 1, 2021, cinema halls will be able to cater to higher number of audiences as part of the easing of curbs

The Ministry of Home Affairs (MHA) has announced a new set of guidelines relaxing the curbs with regard to public places like cinema halls, given the decreasing number of COVID-19 cases. 

As per the new guidelines, cinema halls and theatres that were operating at 50 seating capacity would now have a higher seating capacity.  However, the Home Ministry will prepare a set of standard operating procedures (SOPs) in consultation with the concerned ministries, states, and union territories.

Also, it is announced that there will be an easing of restrictions for international air travel passengers. Though the decision will be taken in consultation with the Civil Aviation Ministry.

The new order will be effective from February 1 and will remain in force till February 28.

This is the second announcement on cinema halls after last September when the MHA finally gave a nod to resumption of cinema halls operation in Unlock 5.0 drive, but with 50% capacity. 

It may be recalled that the Tamil Nadu state government had recently announced 100% occupancy permission for cinema hallsbut the decision was rolled back immediately due to safetyconsideration

Until now, other states such as Delhi, Maharashtra, West Bengal, Uttar Pradesh and others have been operating with 50% capacity. Cinema theatre operators are now hopeful that this move will be followed in other states as well. 

Besides the poor turnout of audiences in movie halls, cinema advertising too has been hit post COVID- 19, as per reports by global media houses. 

GroupM’s ‘This Year Next Year: Global End-Of-Year Forecast’ report released last month stated that globally this sector likely generated less than $3 billion during 2019 and likely fell more than 75% during 2020, given the absence of major studio releases in most markets around the world.

Highlighting the Indian Media & Entertainment (M&E) in its 12th edition report titled- ‘A year off-script: Time for resilience’, KPMG estimated that cinema advertising business reported ₹10.6 billion in FY20 and is likely to drop to ₹3.7 billion in FY21. Moreover, a number of single screen theatres have shut down and no new screens are expected to be added during FY21.

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