As the film industry across the country crumbles under the weight of underperforming movies, exhibitors are facing an uphill task to sustain business. Various schemes and promotional gimmicks, including ‘Buy one, get one free’ offers, have failed. In a move to get audiences back to theatres, Karnataka Chief Minister Siddaramiah announced in his budget presentation on March 7 that movie tickets in the State’s theatres – both single-screens and multiplexes – would be capped at Rs 200. The decision came after reviewing the inflated movie ticket prices ranging from Rs 500 to Rs 1500, which is thought to have contributed to the decline in the theatre-going audience. Karnataka Film Exhibitors Association president KV Chandrashekar said, “At present, for the first-day show, even single-screen theatres charge Rs 250 to Rs 300, and multiplexes charge a much more exorbitant price. This will stop. There will be non-dynamic pricing in future. Prices won’t cross the Rs 200 mark.” However, trade analysts say capping ticket prices is impractical. Many feel that pricing should be determined by individual exhibitors and not the government in a general decision. “Rather than government-imposed price caps, what is needed is a system of self-regulation within the industry. Multiplex owners should have the autonomy to determine pricing structures based on the quality of services they provide. If the government intervenes to cap prices, multiplex owners may find themselves forced to compromise on the very amenities that attract audiences, ultimately degrading the cinema experience,” says Girish Wankhede. Currently, in the Southern regions, exhibitors operate under flexible arrangements with the respective state governments. In Andhra Pradesh and Telangana, ticket prices are capped at between Rs 175 and Rs 200. Tamil Nadu has had a ceiling on ticket prices for several years, and constantly reviews its rate card based on consumer behaviour. high ticket prices deter viewers Filmmakers such as Subhash Ghai, Karan Johar and Zoya Akhtar have called out the exorbitant pricing of tickets, ranging between Rs 300 and Rs 3500 in Mumbai and the Delhi Northern Capital Region, which, combined with the high cost of food and beverages, is a drain on the average moviegoer’s pocket, making family viewing experiences few and far between. Subhash Ghai had proposed that the Hindi film industry work with state governments to formulate a plan to cap 30 percent of cinema tickets, citing the example of Tamil Nadu. However, this is easier said than done. Multiplex chains are constantly evolving to enhance the movie-going experience. The range of amenities designed to elevate the overall enjoyment includes state-of-the-art audiovisual technology, which requires substantial financial investment. Apart from the stiff competition from OTT streaming services, there is also a constant race to buy star-studded projects, which also strain the resources of theatre owners. As all but a few of the big-ticket films have sunk so far, exhibitors have had to resort to re-release of old films to keep the screens alive. ‘How are we to sustain the business?’ Deepak Kumar Sharma, Managing Director at Cineport Cinemas in Delhi NCR says, “The government should help exhibitors with incentives — maybe buy tickets from us and sell them at a lower price as it does in the case of several other industries. Or they should help us with licences as well as formulate a plan allowing us to sell tickets 20 per cent cheaper. But at the end of the day, we too have overheads. How are we supposed to meet those?” Legitimate worries Girish Wankhede however, feels capping rates is not a viable solution. “Ultimately, a thriving cinema ecosystem will benefit everyone— owners, employees and audiences alike. It is essential to strike a balance that recognizes the investments made by multiplexes while also making cinema accessible and enjoyable for all,” he asserts.
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