The Multiplex Association of India (MAI) on Wednesday said movie ticket pricing is “dynamic and flexible” in nature and fluctuates based on factors like location, day of the week, seat type, film format, and cinema format as well as inflationary pressures. The industry body also said evaluation of pricing in the cinema industry must account for broader economics of movie business, which involves multiple stakeholders, including producers, distributors and exhibitors.
The industry body was reacting to recent statement by film producer Karan Johar who suggested that cinema exhibitors are responsible for high ticket and food & beverage (F&B) prices.
“In 2023, the Average Ticket Price (ATP) across all cinemas in India was ₹130 per ticket. The country’s largest cinema chain, PVRINOX, reported an ATP of ₹258 for 2023-24. Additionally, the Average Spend Per Head (SPH) on F&B at PVRINOX during this period stood at ₹132. This brings the total average expenditure for a family of four to ₹1,560 —significantly different from the ₹10,000 figure carried in the media reports,” Kamal Gianchandani, President, MAI, said in a statement.
Optimise pricing
The industry body said cinema operators use “sophisticated digital tools” to stimulate audience demand and optimise pricing, frequently offering discounts and promotions that make cinema outings more affordable, not just during off-peak times but even on popular days.
“Many of these initiatives can lower the overall cost of a cinema visit by more than 50 per cent, providing families and moviegoers with affordable options. All pricing structures are clearly listed both at cinemas and online, ensuring transparency and choice for customers,” the statement added.
Market forces
“Each of these players contributes to the final cost to consumers, with prices ultimately shaped by the market forces of demand and supply. If lowering prices could optimise revenue for everyone involved, cinema operators would naturally make those adjustments without needing to be told,” it added.
“At the heart of it all, our industry remains committed to delivering a diverse, high-quality, and accessible entertainment experience for all moviegoers. We believe it’s crucial to consider the full picture before drawing conclusions about pricing, as it’s a complex issue involving many moving parts. The goal remains the same: to provide audiences with the best possible experience at a fair value,” Gianchandani added.