The Karnataka government has issued new regulations capping movie ticket prices at Rs 200 (excluding taxes) across the state, marking a significant move to make cinema entertainment more affordable for the public.
The price ceiling, announced on Friday, comes into effect following the state government’s amendment to the Karnataka Cinema (Control) Rules, 2014. The new regulations will be officially known as the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025.
However, the cap includes a notable exception. Multi-screen cinemas with premium facilities having 75 seats or fewer will be exempted from the price restrictions, allowing them to maintain their current pricing structure.
The development follows a draft notification first issued on July 15, which proposed amendments to the existing cinema control framework. The government had subsequently invited feedback from industry stakeholders, providing a 15-day window for submissions to the office of the Additional Chief Secretary to Government, Home Department.
The new rules derive their authority from Section 19 of the Karnataka Cinema (Control) Act, 1964 (Karnataka Act No. 23 of 1964), which empowers the state government to regulate cinema operations and pricing structures.
“In exercise of the powers conferred by Section 19 of the Karnataka Cinema (Control) Act, 1964, the Government of Karnataka has made the draft rules to further amend the Karnataka Cinema (Control) Rules, 2014,” stated the official notification released on Friday.
The Karnataka Cinemas (Regulation) (Amendment) Rules, 2025 will officially come into force from the date of their final publication in the Official Gazette, according to the government announcement.
Notably, this is not the first time the Siddaramaiah government has announced such a cap. In 2017, during his previous tenure as CM, he introduced a similar Rs 200 cap on ticket prices, although the enforcement of the policy faced various challenges. The cap was lifted after multiplex owners approached the Karnataka High Court to contest the government’s decision, amidst concerns regarding potential revenue loss.
Now, Siddaramaiah has re-introduced the policy in response to requests made by the Kannada film industry.
How multiplexes make money
Multiplexes operate through three primary revenue channels that collectively drive their profitability and business sustainability.
Ticket sales represent the most visible revenue stream, though the economics are complex. Box office collections are split between multiplexes and film producers through varying agreements that depend on the movie’s performance and release timeline. Typically, producers receive a larger share during the initial weeks of release, while theaters retain increasing percentages as films continue their run.
For successful films, producers may receive bonuses, adjusting splits to 52.5% producer and 47.5% cinema. Conversely, poorly performing films may result in theaters keeping larger portions. Long-running movies can generate up to 70% revenue retention for theaters, making extended runs particularly profitable.
Food and beverage sales have emerged as the primary profit driver for major multiplexes. Unlike ticket revenue, cinemas retain 100% of F&B earnings, making this segment crucial for profitability. PVR Cinemas, India’s largest multiplex operator, earned Rs 1,145 crore from F&B sales compared to Rs 1,878 crore from tickets in 2023-24 fiscal. The strategy revolves around selling high-margin products like popcorn and beverages to captive audiences with limited alternatives, creating substantial profit opportunities.
Advertising revenue forms the third pillar, with brands paying premium rates for in-theater advertising due to guaranteed captive audiences. This revenue stream can contribute up to 15% of a multiplex’s total earnings, providing additional income beyond core cinema operations.
The new regulations will be officially known as the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025. (File Photo) 
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