High ticket price controversy: Multiplex Association slams Karan Johar
The Multiplex Association of India (MAI) has refuted film producer Karan Johar's recent assertion that a family of four spends approximately ₹10,000 on a single visit to a multiplex. Contrary to Johar's claim, the MAI stated that the average expenditure for such a family is around ₹1,560, inclusive of food and beverages. This statement was issued in response to Johar's comments during an interview with The Hollywood Reporter India.
MAI highlighted average ticket and concession prices
The MAI further clarified that the average ticket price across all Indian cinemas in 2023 was ₹130. For PVR INOX, India's largest cinema chain, the Average Ticket Price (ATP) for fiscal 2024 was reported at ₹258. "Additionally, the average spend per head on food and beverages at PVR INOX during this period stood at ₹132," it added. This data contradicts Johar's claim of exorbitant costs associated with multiplex visits.
Johar's concerns about affordability of multiplex visits
In his interview, Johar expressed concern that high costs at multiplex theaters could be deterring moviegoers. He cited a survey suggesting that 90 out of 100 households could only afford to visit multiplexes twice a year due to these costs. "Family members said that they don't like to go to cinema halls because when kids say that they want popcorn or something to eat, they feel bad denying them," he stated.
MAI emphasized content and appeal over pricing
The MAI responded to Johar's remarks by emphasizing that the demand for a film is primarily driven by its content and appeal, not just pricing. It argued that any evaluation of cinema industry pricing should consider the broader economics involving multiple stakeholders such as 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," it said.
MAI highlighted flexibility and discounts in cinema pricing
The MAI also highlighted the dynamic nature of cinema pricing, noting that it varies based on factors such as location, day of the week, seat type, film format, and cinema format. It pointed out that exhibitors use digital tools to stimulate audience demand and optimize pricing. "Frequently offering discounts and promotions that make cinema outings more affordable," it said. These initiatives can reportedly reduce the overall cost of a cinema visit by more than 50%.
