As the entertainment sector rebounds from the COVID-19 outbreak, India’s two largest multiplex companies announced on Sunday that they would unite to form a massive theater operator with over 1,500 screens in 109 cities.

PVR (PVRL.NS) and INOX Leisure (INOL.NS) claimed the merger will help both companies enhance efficiency, expand into new areas, and reduce costs.

“The cinema exhibition sector has been one of the worst-affected sectors as a result of the epidemic,” PVR Chairman Ajay Bijli stated in a press statement. “Creating scale to generate efficiency is important for the long-term sustainability of the business and fighting the onslaught of digital OTT platforms.”

Netflix (NFLX.O), Amazon’s Prime Video (AMZN.O), and Disney’s (DIS.N) over-the-top (OTT) platforms have made significant gains in India, where the epidemic destroyed a film industry known for song-and-dance extravaganza seen by millions.

With about 850 screens, PVR is India’s largest multiplex network, followed by INOX Leisure with roughly 650 screens.

The merger comes after a two-year period during which most theaters were forced to close owing to COVID-19 regulations.