Cinemas in the South seek flexibility in ticket pricing to boost growth
₹295, recliner seats are limited to ₹350. Likewise, in Andhra, ticket prices are capped at ₹177 and ₹295 respectively. Tamil Nadu has capped the rates at ₹150, which does not include goods and services tax, and local taxes.
Opting for premium format may lead to 20-30% increase in ticket rates, experts said. In April, Mani Ratnam-directed period drama Ponniyin Selvan-2 was the first film in Tamil to be released in 4DX. Ironically, Tamil Nadu had no screen equipped with the format.
Trade experts said movie buffs had to travel to nearby cities, including Bengaluru and Kochi, if they wished to view the film in 4DX. “Price caps on movie tickets in certain South Indian states is still under debate. We have a mission to design premium cinema with state-of-the-art experience, world class equipment and projection systems.
However, price caps in south limits the profitability and viability of premium format offerings. In contrast, north Indian states do not have price caps, which makes it easier to expand luxury formats in those regions. The absence of price restrictions allows for greater flexibility in setting up ticket prices to maximize revenue potential," said Devang Sampat, chief executive officer, Cinepolis India.
Implementation of price caps does affect multiplex businesses, particularly those operating in luxury formats, said Sampat, since it often involves higher operating cost due to the elevated amenities and services provided to customers. Multiplexes with licences to various premium formats have not been able to launch many high-end theatres in the south, said independent trade analyst Sreedhar Pillai. “Obviously they do not see revenue potential as in the north given that governments (in the south) don’t want to
. Read more on livemint.com
