Multiplexes cut ticket prices to sell duds
Over the past few weeks, multiplex chains have adopted variable promotional pricing strategies to attract audiences to theatres, especially when footfall is low during weekdays and films fail to find traction.
Trade experts said the practice of low pricing once a week was prevalent 10-15 years ago and may come back to be followed on a regular basis, with chains continually testing the waters.
The strategy also proves how much of a deterrent the high rates are, and that viewers are interested in going to the movies if prices are reasonable.
It was evident in the performance of films like Article 370 that benefited from such strategies.
Over the past weekend, Sidharth Malhotra-starrer Yodha operated with a ‘buyone-get-one ticket’ offer while on Cinema Lover’s Day on 23 February, tickets were available at a discounted price of ₹99, including for premium formats, except for southern states, excluding Karnataka. Kiran Rao’s Laapataa Ladies was priced at ₹100 on 8 March to mark International Women’s Day.
Meanwhile on Monday, PVR INOX Ltd launched the second edition of its monthly cinema subscription service, Passport that allows subscribers to watch up to four movies per month for ₹349 from Mondays to Thursdays.
Premium formats, like IMAX, P[XL], ICE, ScreenX, MX4D or 4DX, can be availed by paying an additional fee of ₹150 over and above the Passport coupon.
However, this feature would not be available in south Indian markets.
“We employ a strategic approach to promotional pricing during off-peak times targeting specific audience segments such as students, homemakers and senior citizens to boost footfalls. It’s crucial to recognize that this pricing strategy functions as a short-term method to attract audiences to theatres,” Sanjeev Kumar Bijli, executive director, PVR INOX Ltd said.
“Its effectiveness lies in its role as an unexpected element that builds anticipation throughout the promotional period, rather than serving as a sustainable long-term approach,” Bijli added.
Pricing is determined based on factors such as the movie being screened, the day of the week, the time slot of the day, the paying propensity of the audience in the catchment area, and the cinema's offerings, Bijli said.
Even during the pre-pandemic time, individual multiplex chains would choose one weekday to offer tickets at low rates, said Amit Sharma, managing director of Miraj Entertainment that operates multiplex theatres.
“Those were done in isolation but when efforts are aligned across companies, there is more awareness among audiences with lesser spend on marketing,” Sharma said.