The Multiplex Association of India (MAI) has issued a press release to refute recent media reports which highlight concerns about the impact of high prices on cinema visitation. In the same context, the media reports have carried Karan Johar’s comments suggesting that cinema exhibitors are responsible for high ticket and food & beverage (F & B) prices. The release, issued by the MAI and signed by its president, Kamal Gianchandani, explains:
“In 2023, the Average Ticket Price (ATP) across all cinemas in India was Rs. 130. The country’s largest cinema chain, PVR INOX, reported an ATP of Rs. 258 for the fiscal year 2023-24. Additionally, the Average Spend Per Head (ASPH) on F & B at PVRINOX during this period stood at Rs. 132. Thus the total average expenditure for a family of four was Rs. 1,560 — significantly different from the Rs. 10,000 figure carried in the said media reports.
“It is also essential to highlight that cinema pricing is dynamic and flexible. Prices fluctuate based on factors like location, day of the week, seat type, film format, and cinema format. Exhibitors utilise 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%, providing families and movie goers with affordable options. All pricing structures are clearly listed at both, cinemas and online, ensuring transparency and choice for customers.
“More than anything else, it’s a well-recognised fact that the demand for a film is largely driven by its content and appeal, rather than by pricing alone. Any evaluation of pricing in the cinema industry must account for the broader economics of movie business, which involves multiple stakeholders, including producers, distributors and exhibitors. 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.
“Additionally, unavoidable factors such as inflation play a role, and India has historically experienced high inflation rates. Nevertheless, cinema exhibitors continuously experiment with pricing models, collecting customer feedback and leveraging data analytics to refine their strategies. This ensures that the current pricing is both, competitive and fair, in the context of today’s market.
“At the heart of it all, our industry remains committed to delivering a diverse, high-quality and accessible entertainment experience for all movie goers. 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 audience with the best possible experience at a fair value.”