Hit or flop, it no longer matters. India’s multiplex marketers are putting more bottoms on seats by offering other forms of entertainment.

Stretch back to see the movie on fully reclining seats equipped with airline-style remote. Press the button and a liveried waiter discreetly materialises to serve you iced tea and gourmet pizzas. Replete with food and film, you waddle across to the movie memorabilia shop where books and DVDs are stocked.

A luxurious experience, indeed. But it comes at a price. Rs 1,050 to be exact. If you are willing to spend that sort of money, PVR’s Director’s Cut at the Ambience Mall in Vasant Kunj in Delhi is where you should go. PVR Cinemas claims it is already raking in Rs 1 crore a month from this luxury offering.

Through its subsidiary PVR BluO (a joint venture with Major Cineplex group of Thailand), it has also set up here a 26-lane bowling alley in a 50,000 sq. ft. area that has tattoo lounges, karaoke bars and much else.

Cut to the South. Sathyam Cinemas in Chennai is dishing out mouth-watering fare from its in-house bakery. Moviegoers can look forward to downing delectable chocolate doughnuts and other goodies as they watch the movie, not to mention eating in at ID, its South Indian restaurant, and getting the adrenalin going at Blur, its gaming zone.

Tan Ngaronga, Chief Operating Officer of Sathyam Cinemas, says the theatre earns as much as 25 to 35 per cent of its revenues from food and beverage.

Move to Versova, Mumbai. Cinemax India has laid out out a four-star experience for film buffs there. Its luxurious Red Lounge comes with all the trappings – 180-degree recliner seats and a menu with more than 30 food items. At several of its venues, it has put up Giggles, its gaming zone for kids. For the older lot, there’s Young at Heart, with pool tables et al.

Every once in a while Cinemax pulls in films stars into its halls and gets them to interact with moviegoers.

“Year-on-year we see a 40-45 per cent jump in revenues,” says Sunil Punjabi, CEO Cinemax India. He says the multiplex chain is changing consumer behaviour through its promotional activities. The big screen now has more patrons, he says.

It isn’t just the movies

In the 14 years after PVR Cinemas opened India’s first multiplex at Delhi’s Saket area, theatre owners have stopped relying on the box-office for their incomes. They are de-risking the business so that a dud movie no longer matters. A large chunk of their revenues now come from food, beverages, advertising and other entertainment.

“We have moved from being a mere exhibitor to one providing a 360-degree experience by foraying into hospitality, gold-class cinema and online ticketing,” says Gautam Dutta, Chief Operating Officer, PVR Cinemas.

Other chains are following suit. According to a FICCI-KPMG media and entertainment sector report, this is the only way forward for survival for theatre chains. Single theatres dependent on movies alone for their revenues will have a tough time, forecasts the report.

This doesn’t mean that multiplexes are giving up faith in the core movie proposition. A big part of the earnings are still dependent, after all, on the fate of a film project. Many like Cinemax India are taking an active hand in promoting the movie they screen, especially using the digital route. A PwC report on Indian Entertainment and Media says social networking is becoming key to film and multiplex marketing.

On Facebook, for instance, Cinemax has started a page called Max Friend, where it runs movie-specific contests and campaigns. It has already generated 20,000 likes within a month-and-a-half. Viral marketing online is another strategy that multiplexes use to attract interest in a movie.

The digital medium, in fact, is seeing innovative action for movie promotions. For instance, recent release Ladies vs Ricky Bahl saw special screenings for women organised by online group booking site mydala.com at PVR venues.

On his Facebook page, Sunil Punjabi claims that by focusing on pushing tickets through Web, voice and mobile, the company has shored up sales.

The reel world/ Screen Shot

The market is under-served, says FICCI-KPMG’s annual media and entertainment report. Taking heed, all the big multiplex chains are now spending their energies and resources on expanding their screen networks. At present India has only around 11,500 active screens to beam the estimated 2,000 movies that the country’s movie factory churns out.

“The per thousand screen ratio is the lowest in India,” agrees Gautam Dutta, COO, PVR Cinema.

India’s screen density stands at a very low estimate of 12 screens per million. China has 65,000 screens, and the US has 36,000. India needs at least 20,000 more screens, say industry bigwigs.

Industry projections are that India’s film industry will take off from Rs 9,300 crore in 2010 to Rs 13,200 crore by 2015. Indeed, this year has seen a rise in hits for Bollywood. One reason, say industry sources, is because there are more screens now and more prints have been made.

The Show moves – to Tier-2 and -3

Even as they woo urban crowds with luxury and food, the multiplexes have a different strategy for small towns. Here they are betting on price winning the game.

Suman Bhargave, Managing Director, Stargaze Entertainment, promoters of Glitz Cinema, says: “In these cities watching cinema is a social occasion. The entire family goes out for a movie and cinema is the single largest form of entertainment. We offer gold-class viewing, special waiting lounges and menu on seat at a price 40 per cent less.”

Catering primarily to the small towns, Glitz Cinema, which is funded by the Network 18 group, is present across eight locations and 22 screens in Tier 2 cities.

SRS Cinemas is also on to this game. It operates a chain of cinemas across six cities, mostly tier-2 and tier-3 in North India. This includes 11 properties and 30 screens.

“We operate mostly on price points, and our tickets range from Rs 50-170. While equipped with digital projectors and 3D screens, we provide the classic taste of neighbourhood cinema for small towns,” says Tinku Singh, Group President, SRS Ltd.

PVR group too is not ignoring the smaller towns. Two years ago, it launched PVR Talkies for tier-2 and -3 cities, where the ticket prices started as low as Rs 50. “These cinemas have seen occupancy rate of 60 per cent. So far there are three PVR talkies in Baroda, Latur and Aurangabad. The response has been good,” says Dutta.

Regional masala

Multiplex marketers are also scenting opportunity in regional films. Says Cinemax’s Punjabi, “We have been screening every kind of film depending on local demands.” For instance, he points out, Sion in Mumbai has a heavy South Indian population, so the group has put up a permanent screen for South Indian movies. “Nashik and Versova have a huge Bengali population. So we show a lot of Bengali movies there.”

In fact, he says, the regional base garners one-third of the revenue for the company.

With Middle India working hard and starved for entertainment, the multiplex chains have quickly realised that Sundays need alternatives. What better way than Family’s Day Out at the friendly neighbourhood multiplex?

Tweet

Related posts:

1. Air New Zealand to spend $263 million on turbo-prop planes Air New Zealand will add up to two million...
2. Watch out for larcency in the air By George Hobica Airfarewatchdog.com With fares and fees skyrocketing...
3. At 9/11 Trial, Lawyers Will Watch the Clock The family, determined to prove what it believes was...