Jio Fiber plans pulls down PVR and Inox

Reliance Industries' (RIL) AGM on Monday brought cheers to its shareholders and customers, but on the flip side, it was painful for stocks like PVR and Inox, which tanked nearly 10 per cent and 8 per cent, respectively. Later both the stocks recovered from their lows and at 10.46 hours Inox & PVR was trading at Rs. 296, and 1435 lower by 1.6 and 2.1 per cent.

In yesterday’s AGM Mukesh Ambani-led Reliance Industries announced its JioFiber service where customers can watch a movie on the same day of its release in theatres. This resulted in a panic situation for listed multiplex owners Inox and PVR.

According to JioFiber's proposed plan, customers can avail a service called Jio First Day First Show from the mid 2020. This service will be available to all JioFiber customers. However, Inox Leisure in its exchange filing said that the producers, distributors and multiplex owners in India have mutually agreed to an exclusive theatrical window of 8 weeks, between the theatrical release of a movie and release on any other platform.

The owner of creative content is producer who can decide to choose the platform for distribution and consumption of his content. However, due to mutually agreed exclusive theatrical window clause, producers can either choose theatrical exhibition or release on any other platform.

Besides, the stocks that outperformed on Tuesday due to Reliance's AGM are Den Network and Hathway Cable, in which RIL acquired majority stakes. Hathway Cable was locked-in upper circuit of Rs. 23.50 per share, while Den Network surged almost 17 per cent. RIL was also buzzing mainly on account of the company’s deal with Saudi Aramco and its plan to become a net debt-free company in the next 18 months. The stock of RIL was up by nearly 10 per cent.