Bheja Fry : Analysis of single screens/Multiplexes

Q : Can you give quantitative and qualitative analysis of single screens as well as multiplexes in india ?

There are around 11,000 single-screen theaters in India. These theaters are not very well-maintained, since their owners find it difficult to upgrade and renovate them due to funding constraints.  Over the last few years, multiplexes have become the preferred choice of viewers to watch movies. It is estimated that there are currently around 850 multiplex screens across the country, which is projected to grow to 1,600 by 2013. Despite accounting for a very small share of the total number of screens in the country, multiplexes contributed 40 – 50 per cent of total box office revenues in 2008. Multiplexes have a more effective business model than single-screen theatres as they are able to charge a higher ticket price, monitor box office collections in a transparent manner and leverage other sources of revenues such as food and beverages, games and advertising. Some state governments have given an impetus to multiplexes by offering them exemption from entertainment tax.

Entertainment tax benefits

The entertainment tax rates in India are very high thus pulling down the profitability of the cinemas. In order to encourage investment in the film exhibition sector, many state governments have announced policies offering entertainment tax benefits. This has encouraged the growth of Multiplex Cinemas and also encouraged single-screen theaters to convert into Multiplexes. The quantum of entertainment tax benefit which may be available in each state is different and the availability of these exemptions would be dependent on compliance with certain conditions specified by the relevant state.

International perspective : Lower penetration of multiplexes within the country

India has a total of 11,850 screens that makes it less than 12 screens per million populations. This equation is on a far lower side as compared to the developed nations like US and France. More than 95% of theatres are standalone, single-screen theatres with fragmented ownership, unclear control, paucity of funds for maintenance and up gradation. A UNESCO study says India has a market for 20,000 screens today. Considering the facts, the untapped potential for growth of Multiplex industry in India is huge.

— BollyBusiness

~ by Yakuza on April 20, 2010.

3 Responses to “Bheja Fry : Analysis of single screens/Multiplexes”

  1. great analysis,
    Dear Yakuza,
    tell me about ajay film Diljale,it is hit or semi hit,great film with great songs.

  2. awesome

  3. yes

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