Always outspoken industry veteran, Rishi Kapoor, recently said that “Demonetization has not affected Bollywood at all. Bollywood has no slush money. It is the real estate and the black market that is, rightly, suffering,”
Unfortunately Mr. Kapoor’s statement is baseless with many analysts believing that demonetization might have in fact affected the Indian box office collection of Rock On 2 and Dear Zindagi – the two major films that were released at the height of demonetization’s aftermath.
Film insider, Akshaye Rathi, explained back in November that “the degree of impact will be more visible in tier 2 and tier 3 towns where people are not completely aware of using plastic money or online banking. Places like Mumbai, Bangalore or Delhi is where people go to PayTM or a Book My Show to get their tickets. But there’s still a lot of people who are old school, who go to the bank in the beginning of the month, withdraw money and have a monthly budget. They spend that in cash. In those kind of places, the impact will be significantly bigger.”
He goes on to say. “It all depends city to city. In metro cities like Mumbai, around 40% of tickets are sold online. But you move to a tier 2 city like Lucknow and the percentage drops to around 30%. You move to some other small town and it’s not even that much.”
Without concrete evidence, it is ultimately difficult to discern whether or not PM Modi’s controversial demonetization policy has affected Bollywood box office figures.