The Multiplex Association of India (MAI) has issued a statement addressing recent media reports that highlight concerns over high ticket and food and beverage (F&B) prices in cinemas. This response comes in light of comments made by filmmaker Karan Johar, which attributed the responsibility for these pricing issues to cinema exhibitors.
In their statement, MAI emphasizes the need for a balanced view on the matter. The association begins by providing clarity on ticket pricing, revealing that the Average Ticket Price (ATP) across all cinemas in India in 2023 was Rs 130. In comparison, PVRINOX, the country’s largest cinema chain, reported an ATP of Rs 258 for the fiscal year 2023-24. The Average Spend Per Head (SPH) on F&B at PVRINOX during this period was Rs 132, bringing the total average expenditure for a family of four to approximately Rs 1,560. This figure starkly contrasts with the Rs 10,000 reported in some media outlets.
MAI highlights that cinema pricing is dynamic and varies based on several factors, including location, day of the week, seat type, and film format. Cinema operators utilize advanced digital tools to optimize pricing and often provide discounts and promotions, making cinema visits more affordable. Many initiatives can lower the overall cost of a visit by over 50%, especially during off-peak times.
The association stresses that the demand for films is largely driven by content and appeal rather than pricing alone. A comprehensive evaluation of cinema pricing must consider the broader economics of the film industry, which involves multiple stakeholders, including producers, distributors, and exhibitors. Prices are ultimately shaped by the market forces of supply and demand. MAI asserts that if lowering prices could enhance revenue for all parties involved, cinema operators would implement those changes without external prompting.
Additionally, MAI acknowledges the role of inflation in pricing, noting that India has experienced historically high inflation rates. However, cinema exhibitors continually experiment with pricing models, leveraging customer feedback and data analytics to refine their strategies. This commitment ensures that current pricing remains competitive and fair in today’s market.
The statement concludes with a reaffirmation of the industry’s dedication to providing a diverse, high-quality, and accessible entertainment experience for all audiences. MAI urges a nuanced understanding of the complex factors that influence pricing, emphasizing that the ultimate goal is to offer the best possible experience at a fair value for moviegoers.
Kamal Gianchandani, President of the Multiplex Association of India, reinforces the importance of transparency and collaboration among all stakeholders in the film industry to enhance the cinema experience for everyone.