Multiplexes hike rates as luxury format becomes buzzword
NEW DELHI: Multiplex chains across India have increased ticket prices as well as F&B (food and beverage) rates by at least 20% post the pandemic, posing a challenge to small budget films that may not draw audiences and acting as a deterrent to audience segments recovering from economic stress.
Trade experts said this is a way to make up for losses of the pandemic and a precursor to cinemas adopting luxury formats. PVR’s recent deal with French design company Oma Cinema will turn 25% of its theatres into more high-end, experiential properties considered crucial to woo audiences back to theatres.
“All the cinema chains have hiked prices which is definitely having an impact with audiences shying away at least from certain films. Some of these films were green-lit and shot before the pandemic. But audience tastes have changed drastically in these two years,” said a film trade analyst declining to be named.
He said cinema chains are banking on the fact that viewers are still turning up in hordes for large-scale spectacles like Doctor Strange or K.G.F: Chapter 2 but don’t realise that these franchises that have die-hard fans are few. “On the other hand, Hindi film Heropanti 2 had to be discontinued in the week of Eid which was unheard of, until now,” the analyst added.
Kamal Gianchandani, chief executive officer at PVR Pictures Ltd said while the company is witnessing inflationary pressures and has increased prices in the past few weeks, the outcome has been positive. “We have anyway always practised variable pricing for big-ticket films and on weekends, but in this case, the hikes are reflecting because a lot of these major titles have released over the past few weeks and enjoyed a phe37.8% nomenal run,” Gianchandani said.
Amit Sharma, chief executive officer at Miraj Cinemas agreed that the chain may have taken a 5-7% hike in ticket rates in certain locations but that scale and budget of films and the buzz around them dictate these prices. “We also reduce prices post the opening weekend if the films don’t perform up to expectations,” Sharma said adding that F&B rates have gone up by 5-10% thanks to inflation.
Surprisingly, food and beverage prices also vary in multiplexes depending on the show timing and day of the week, said analysts. Gianchandani said spends on F&B have gone up by 20% as people are eating at the theatres too. He called the current time a purple patch for the exhibition business.