India's two largest multiplex firms have announced a merger to create a giant cinema operator with more than 1,500 screens across 109 cities as the entertainment industry recovers from the Covid-19 pandemic.
PVR and INOX Leisure said the merger, which is subject to regulatory approvals, would help both companies improve efficiency, reach newer markets and optimise cost.
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"The film exhibition sector has been one of the worst impacted sectors on account of the pandemic and creating scale to achieve efficiencies is critical for the long-term survival of the business and fight the onslaught of digital OTT platforms," PVR Chairman Ajay Bijli said in a statement.
Over-the-top, or OTT, platforms such Netflix, Amazon's Prime Video and Disney have made deep inroads in India, where the pandemic ravaged a film industry known for song-and-dance spectacles watched by millions.
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PVR is India's largest multiplex chain with more than 850 screens, followed by INOX Leisure with about 650 screens.
The merger follows a two-year period when most theatres were shut due to Covid-19 restrictions.
(Reuters)
