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Time of India
5 days ago
- Business
- Time of India
Picture abhi baaki hai…! Karnataka's ticket price cap is multiplexes' latest plot twist
In Karnataka's movie theatres, popcorn might soon cost more than the film itself. The Siddaramaiah-ruled state wants to cap movie ticket prices at Rs 200 (taxes included) across all formats, languages and theatre types. The proposal which was announced in the CM's budget speech earlier this year, is now out as a draft notification. It's open for public feedback, but the industry's reaction is already loud and: this is a big deal! Explore courses from Top Institutes in Please select course: Select a Course Category Digital Marketing Data Science Public Policy Finance Healthcare Design Thinking Leadership Technology Product Management Management Data Science Others Degree healthcare PGDM CXO Skills you'll gain: Digital Marketing Strategy Search Engine Optimization (SEO) & Content Marketing Social Media Marketing & Advertising Data Analytics & Measurement Duration: 24 Weeks Indian School of Business Professional Certificate Programme in Digital Marketing Starts on Jun 26, 2024 Get Details There are two sides to this story. While this move is being sold as a pro-public, pro-cinema step, it flips the economics of multiplexes on its head. Lower ticket prices might get more people through the door, yes. But for theatre chains that rely heavily on flexible pricing and premium formats, this is a real threat to their bottom line. For example, take a Director's Cut hall. Imagine getting a recliner at just Rs 200. Bizarre, isn't it? Not just for you, but for brands offering these services as well. PVR-Inox, India's biggest multiplex operator, might face a tough time if this move comes into action. Karnataka alone accounts for more than 12% of its screens and about 10% of its box office earnings. Average ticket prices in the state hover around Rs 260. A flat Rs 200 cap means a straight 30% cut in ticket-level revenue. Live Events Now stretch that across the chain's pan-India books. According to Elara Securities , the cap could shave off 3.7% from PVR-Inox's overall average ticket price, reduce revenue by 2.2%, and drag down EBITDA by 1.8% over FY26–28. That's not small change. And the concern isn't just about numbers, it is also about the message this sends. This might just be the start of a broader reset in how India prices its cinema. What does the cap really mean for theatres? If you're a regular moviegoer, this sounds great. Tickets prices have been climbing up for years. A family of four catching a weekend movie in a mall may have to spend Rs 2,000 after tickets, snacks, and parking. Bring the ticket down to Rs 200, and suddenly that trip becomes more budget-friendly or as GenZs would say - Affordable pro max! But from the business side, this is a very different story. Multiplexes operate on a fragile formula based on ticket revenue, food sales, ad revenue and rent. Now, take away the ability to charge more when demand is high, and that formula starts to break. This is especially true for premium formats like IMAX, 4DX, or recliner seats. These don't come cheap. Building and operating them require major investments. In Bengaluru, these screens currently charge Rs 600 or more. A blanket cap of Rs 200 makes them instantly unviable. Karan Taurani of Elara Securities said that the cap hurts the very model multiplexes used for securing high growth. Lower returns will cool investor and franchise interest. Expansion plans, especially in second-tier cities or in premium screens, will slow down (or maybe stop). That will have ripple effects, too. Fewer screens means fewer options for producers and distributors. Local employment in theatre operations will take a hit. And viewers, ironically, might end up with fewer places to watch the kinds of films this policy claims to support. Theatre chains might also be forced to shrink, pulling out of low-performing properties or cutting down on the number of screens in some locations. In the short term, that's a loss for audiences. In the long run, it's a risk to the entire movie theatre ecosystem. PVR-Inox already struggling The numbers don't lie. The revenue from operations in the quarter ended March 2025 stood at Rs 1,250 crore, down from Rs 1,256 crore in the corresponding quarter of the last financial year. On a sequential basis, the company reported a loss against profit after tax (PAT) of Rs 36 crore in Q3FY25. The top line, though, witnessed a 27% fall versus Rs 1,717 crore in the October-December quarter of FY25. The box office in FY '25 was impacted by an uneven release calendar, marked by inconsistent content availability across quarters, a company filing said. Both Bollywood and Hollywood underperformed, contributing to a 9% decline in the company's overall gross box office revenue. That's a sign of real pressure. Content is uneven, audience behaviour is shifting, and the costs of operating multiplexes keep climbing. The Rs 200 cap only adds to the troubles. So what's the fallback plan? Food. Over the past few years, theatres have leaned heavily into their snack counters not just as a side hustle, but as a core profit driver. With tickets squeezed, expect that push to intensify. More combo deals, bundled experiences, loyalty perks or anything that gets people spending more once they're inside. Lobbies may be redesigned. Premium snack options might grow. Because the reality is that the real money now has to come from the counter, not the seat. Komal Nahta , Indian film trade analyst, sums it up well. 'Business of multiplexes will reduce. That's the minus side,' he says. 'The plus is that the public won't have to pay exorbitantly high ticket prices. Hopefully, lower rates mean more people come in and that boosts overall business,' he added. That's the bet theatres are now being forced to make. But it's a risky one. Especially when most weeks don't have a blockbuster to fill those cheaper seats. OTT threats looming already There's yet another side to this story: streaming. Over the past few years, platforms like Netflix , Amazon and JioCinema have changed how people watch films. Big-screen exclusivity has shrunk. Many films, especially regional or mid-budget ones, land online just weeks after release. Some skip theatres entirely. That shift has weakened the power of the theatre window. Sure, a big-screen release still brings buzz and status. But for many producers, OTT deals offer faster, safer and more certain returns. In Karnataka, this has created friction. Kannada filmmakers have spoken out about poor visibility on national platforms. Some are now building their own OTT ecosystems. The state government, on its part, has announced plans for a dedicated Kannada streaming platform and a film archive, a bid to strengthen local content. But even if that works, it doesn't entirely solve the problem multiplexes face. Without strong theatrical performance, films lose momentum. Without momentum, their digital and satellite rights may lose value too. It's all linked. And price caps disrupt that entire chain. Add to that the shrinking screen count, the slowdown in premium formats, and the pressure on profits - and it's clear that the multiplex model is entering a period of stress. Not the first time! This isn't Karnataka's first attempt at price control. In 2017, the state tried to impose a similar Rs 200 cap. That move went to court. Eventually, the High Court allowed theatres to charge more for premium formats, carving out some breathing space. That legal history may be PVR-Inox's best hope now. It gives them a precedent. A possible negotiation point. But the politics this time is different. Cinema is emotional. And ticket price, like onion price or petrol price, is now becoming a talking point. Rs 200 tickets sound good. It's hard to oppose that publicly, even if the economics don't work. And here's the larger worry. If Karnataka gets away with this and earns goodwill for it, other states might follow suit. A wider adoption of flat caps could force the entire industry to rewrite its business model. That's the real risk. A blow in one state can be absorbed. But a national trend? That's a crisis. Because here's what multiplexes really are - retail businesses with fixed costs, variable revenue and high stakes. You can't squeeze them endlessly without something giving way. Theatres will survive. But they may look very different from the ones we know today - with fewer screens, fewer formats, more food counters, and far more caution on what gets released! This may still get challenged in court. It may still get tweaked. However, the direction is clear -- ticket margins are under review, and for multiplex chains, that's a tough seat to be in.
Time of India
16-07-2025
- Business
- Time of India
Karnataka's movie ticket price cap: Movie goers may have to pay just Rs 200; how it will hit multiplex chains like PVR-Inox
Karnataka cinema houses may have to implement major cuts in ticket prices as the state government is looking to introduce a price cap. The state government on Tuesday released a draft notification proposing a uniform cap of Rs 200, taxes included, on movie ticket prices across all theatres and multiplexes, according to an ET report. While this move could bring big relief for moviegoers, it will likely hit major cinema chains, including PVR-Inox, the report said. The southern state is a key market for PVR-Inox, accounting for 215 out of its 1,743 screens, roughly 12.3% of its national presence. Karnataka also contributes around 8% to Hindi box office earnings and 10% to overall revenue, according to Karan Taurani, media executive vice president at Elara Capital, told ET. PVR Inox will be affected as the average ticket price in the state currently hovers around Rs 260, and the proposed cap would mean a nearly 30% price cut. Taurani said that in case the move is implemented, it could bring down the movie house's consolidated average ticket price by 3.7%, dent headline revenues by 2.2% and reduce EBITDA by 1.8% over FY26–28. The impact would be felt most sharply in Bengaluru, where premium formats such as IMAX and 4D often charge weekend prices of Rs 600 to Rs 1,000. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: One simple trick to get internet without a subscription Techno Mag Learn More Undo A flat cap of Rs 200 could delay the return on investment for these high-end formats and deter further expansion in premium cinema offerings. 'Since distributor revenue is linked to net ticket collections, a 30% price cut would directly impact exhibitor earnings, especially in premium malls where high rentals and reduced ticket pricing may raise the occupancy breakeven threshold above the current ~18–20% per show,' Taurani was quoted as saying. As a result, operators may be forced to depend more on food and beverage sales to stay profitable. The draft rule, which follows a similar announcement in the March 2025 state budget, will now go through a 15-day public feedback window. The government will consider objections and suggestions before deciding whether to finalise the rule through a gazette notification. This isn't the first time Karnataka has tried to regulate cinema pricing. In April 2017, a similar ceiling was introduced but challenged in court. In 2021, the Karnataka High Court partially sided with theatre owners, allowing premium pricing for luxury formats like IMAX and recliner screens, the report said. This time, however, the draft does away with all such exemptions, suggesting a flat rate across all screen types and formats. 'While the government's intent is to make cinema more affordable and promote local language films, historical trends indicate that content quality plays a more critical role in driving footfalls than ticket pricing,' ET cited the executive. He also expects theatre chains to push back, possibly through legal action. Meanwhile, investor sentiment reflected the brewing concerns. Shares of PVR-Inox dipped nearly 1% in early trade on Wednesday on the BSE, touching a day's low of Rs 972.50, well below its 52-week high of Rs 1,748.25. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Upturn
16-07-2025
- Business
- Business Upturn
Karnataka proposes Rs 200 movie ticket price cap — know how much PVR's business will be impacted
By Aditya Bhagchandani Published on July 16, 2025, 08:04 IST The Karnataka government has proposed capping movie ticket prices at ₹200 (tax inclusive) across all theatres and multiplexes, a move that could weigh on PVR-Inox's revenues and profitability, according to analysts. The draft notification, announced following Karnataka's March 2025 budget, applies to tickets for all languages and formats and is now open for public feedback for 15 days before the final order is issued. Why this matters to PVR Karnataka is a key market for PVR-Inox, accounting for 12.3% of its total screens (215 out of 1,743 as of May 2025). The state contributes around 8% to the Hindi box office and about 10% to overall collections, with the average ticket price (ATP) currently at ₹260. If the ₹200 cap comes into force, it would mean a nearly 30% reduction in ATP in Karnataka, translating to an estimated 3.7% decline in consolidated ATP, which could shave off about 2.2% of headline revenue and 1.8% of EBITDA for PVR-Inox over FY26–28E. Premium formats like IMAX and 4DX, which currently command weekend prices of ₹600–1,000, would also see margins eroded and extended payback periods under uniform pricing. Could this hurt PVR's growth? If implemented, the cap could also hurt PVR-Inox's expansion plans by lowering returns for franchise partners, particularly in premium malls where higher rents and reduced ticket prices could push breakeven occupancy rates beyond the current ~18–20% per show. The impact could force exhibitors like PVR to rely more heavily on food & beverage sales to offset weaker ticket revenues. What's next? Exhibitors may challenge the cap in court — a similar move in 2017 was partially overturned by the Karnataka High Court, which allowed higher pricing for premium formats. Karan Taurani of Elara Securities notes: 'The proposed cap is likely to dent earnings, but given the company's scale, the impact may be manageable if the courts allow flexibility for premium formats. We maintain an Accumulate rating on PVR-Inox with a target price of ₹1,100 per share while monitoring developments closely.' While the government aims to make movies more affordable, analysts argue that content quality, rather than ticket prices, is what truly drives footfalls. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Indian Express
03-06-2025
- Business
- Indian Express
Bhool Chuk Maaf Box Office Collection Day 11: Rajkummar Rao-Wamiqa Gabbi film earns Rs 62.82 crore, will finish strong in last three days of its theatrical release
Bhool Chuk Maaf Box Office Collection Day 11: Rajkummar Rao and Wamiqa Gabbi's Bhool Chuk Maaf is certainly making a mark during its limited theatrical run. Released on May 23 in the theatres, the film was expected to struggle because of its unique two-week run at the theatres before it starts streaming on OTT. Consisting of only two weekends, this kind of run limits the power of the word of mouth and doesn't provide the film with the chance of making some real money. The film, however, has managed to do well in the circumstances. Directed by Karan Sharma, the film has already gone past films such as Shahid Kapoor's Deva that had an India net collection of just Rs 33.9 crore, while John Abraham's much awaited The Diplomat earned Rs 40.73 crore. Bhool Chuk Maaf, with the 'time-loop' conflict at the centre of its narrative, has managed to overshadow all these films, including some more that were released this year, and the makers will be hoping for a strong finish. The occupancy rates maintained an average of 10%, with the morning and afternoon shows bringing in 5.27% and 11.78%, respectively, while the evening and night shows achieved 11.06% and 12.47%. ALSO READ: PVR-Inox top boss declares Rajkummar Rao's Bhool Chuk Maaf a 'genuine hit' after theatrical release dispute: 'Has revived theatres' The reason why the remaining three weekdays are even more crucial for the film is that new competitors will be entering the arena right as it makes its exit. The Mani Ratnam directorial Thug Life, starring Kamal Haasan, will be releasing on June 5, and the ensemble comedy Housefull 5 is releasing on June 6. Thug Life marks the return of Ratnam and Haasan coming together, while Housefull 5 has a cast which is bound to chew away a big chunk of Bhool Chuk Maaf's audience. The cast of Housefull 5 includes Akshay Kumar, Abhishek Bachchan, Riteish Deshmukh, Sonam Bajwa, Jacqueline Fernandez, Jackie Shroff, and Nana Patekar. Bhool Chuk Maaf might have been able to draw some audiences to the theatres while competing with the two aforementioned movies, but that question will remain unanswered as the film will be released on Prime Video on June 6, ending its theatrical run. Initially due to the recent India-Pakistan conflict, the makers of the film had decided to launch the film straight to OTT, but multiplex group PVR INOX intervened with a lawsuit. Post the legal action, Maddock Films decided to have this one-off two-week theatrical run.
Indian Express
31-05-2025
- Entertainment
- Indian Express
Bhool Chuk Maaf box office collection Day 8: Rajkummar Rao-Wamiqa Gabbi's film set to cross Rs 50 crore mark, Varun Dhawan's Baby John beaten
Bhool Chuk Maaf Box Office Collection Day 8: Rajkummar Rao and Wamiqa Gabbi's romantic comedy Bhool Chuk Maaf has completed half of its planned two-week theatrical run. According to industry tracker Sacnilk, the film's Indian nett collection rose to Rs 47.25 crore, after it earned Rs 3.15 crore on its second Friday. In all probability, the film should be able to cross the Rs 50 crore mark on Saturday, and will then have one week remaining to maximise its earnings. The Akshay Kumar and R Madhavan courtroom drama Kesari 2 had a similar first week run, but it crossed the Rs 50 crore mark on its second Friday. With the current numbers, Bhool Chuk Maaf has already surpassed the India nett collection of Wamiqa's last film, Baby John, which featured Varun Dhawan and debutant Keerthy Suresh. On the other hand, Rajkummar's last film was the Amar Kaushik directorial Stree 2, which had an India nett collection of over Rs 600 crore. ALSO READ: PVR-Inox top boss declares Rajkummar Rao's Bhool Chuk Maaf a 'genuine hit' after theatrical release dispute: 'Has revived theatres' The occupancy rates remained sparse, averaging of 10.90% throughout the day. The morning and afternoon shows achieved a rate of 5.27% and 11.80%, respectively, while the evening and night shows had a rate of 11.21% and 15.32%. The makers will be hoping that this number will go up the coming two days, as this is the last weekend the film will run in the theatres almost unchallenged. On June 5, Mani Ratnam's Thug Life, featuring Kamal Haasan, will be release in theatres, and on the very next day, the ensemble comedy Housefull 5 will be released. The cast of the latter includes stars like Riteish Deshmukh, Abhishek Bachchan, Akshay Kumar, Sonam Bajwa, Jacqueline Fernandez, Sanjay Dutt and Jackie Shroff. The limited theatre run was decided after the makers of the film announced that they will be releasing the film straight on Prime Video. This move came during the aftermath of the Pahalgam attack and Operation Sindoor. This did not go well with the multiplex chain PVR INOX, which sued them for damages, and finally, Maddock Films had to release the film in theatres, but just for two weeks. The film will be available to stream on Prime Video from June 6.
