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Five esteemed Indian filmmakers — Karan Johar, Zoya Akhtar, Vetri Maaran, Pa Ranjith and Mahesh Narayanan — recently sat down to have a conversation about the current state of cinema in India, particularly focusing on the bleeding Hindi film industry. They also explored how economic factors influence people’s choices to go to the movies, as film-going has become a costly affair.
During the panel discussion hosted by The Hollywood Reporter India, Karan, without directly naming them, tore into multiplex chains for their purported high pricing strategies, which he argued deterred audiences from going to movie halls. He noted that a survey claimed that many average Indian households, which form a lion’s share of the cinema audience in the country, are now watching only two films a year in theatres. He said, they instead prefer dining out rather than spending money on expensive snacks at multiplexes.
Now, the Multiplex Association of India (MAI) has come out with data claiming that the average expense for a family of four at multiplexes is just over one-tenth or 15.6 per cent of what Karan suggested. In a statement issued to the media, the association also stated why ticket rates keep changing frequently.
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Karan had claimed, “Family members said that they don’t like to go to cinema halls because when kids say that they want popcorn or something to eat, they feel bad denying them. So, they would rather go to a restaurant where they’re not paying for the ticket and are paying only for the food. They said, ‘Our child will point and say they want caramel popcorn, but we can’t afford it’. Because the average cost for a family of four can be Rs 10,000. And maybe those Rs 10,000 are not in their economic planning at all.”
The MAI, however, is claiming that in 2023, the Average Ticket Price (ATP) across all cinemas in India was Rs 130 per ticket, MAI stated that PVR INOX, one of the biggest multiplex chains in the country, reported an ATP of Rs 258 for the 2023-24 FY. The average Spend Per Head (SPH) on food and beverage (F&B) at the multiplex’s theatres, during this period, stood at Rs 132. MAI further mentioned that this brings the total average expenditure for a family of four to Rs 1,560 and not Rs 10,000.
Pointing out that ticket prices vary based on factors like location, day of the week, seat type, film format and cinema format, MAI further mentioned that multiplexes often use promotions and discounts to make cinema outings more affordable, “not just during off-peak times but even on popular days.” The statement, signed by Kamal Gianchandani of PVR Pictures Limited and PVR Limited, the president of MAI, mentioned that inflation also influences ticket prices.
However, it may be recalled that in a past interview with The Indian Express, PVR-INOX chief Ajay Bijli had said, “I’m a business, I also need to get an return on investment. If you put a Rs 8 crore projector, then you need to get your revenues in line to get that ROI, which will satisfy any investment decision you make.” In another interview, he blamed lacklustre films for not driving enough revenue, and rejected the idea that the cost of watching films had anything to do with declining box office returns. He told Film Companion, “They aren’t attracted only to price. They’re saying, ‘In my three hours, also give me something engaging’. Pricing isn’t the only thing that moves the needle.”
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