Multiplex and Single Screen Cinemas - India

March 2009

improving supply of real estate and favourable tax exemptions – Demand side: Favourable demographics.Executive Summary Estimated to be worth INR XX bn in 2008 and INR YY bn in 2012 Key Segments: Single and double-screen cinemas and Multiplex cinemas Multiplex segment is growing while single screen segment is declining Southern Indian states together account for x% of the number of theatres in India Drivers: – Supply side: Growth in Film Industry . slowdown in economy. development delays and piracy Characteristics Seasonality Reducing shelf life of movies Low screen density Increasing average ticket prices Trends Producers bypassing distributors Shift to digital cinema Alternate content in multiplexes Retail partnerships New format in single screen theatre Characteristics & Trends LE P M A S Competition • Single screen segment : Highly fragmented and unorganized • Multiplex segment : Dominated by five organized players • Major players in Multiplex segment: Company X.INDIA. rising income levels and willingness of people to spend on recreation Market Drivers & Challenges Challenges: Uncertainty over entertainment tax. Company Y and Company Z • Fierce competition in multiplex segment 2 MULTIPLEX AND SINGLE SCREEN CINEMAS .PPT . alternate entertainment avenues.

INDIA.•Market Overview •Business Model •Drivers & Challenges •Characteristics & Trends •Competition •Key Developments MULTIPLEX AND SINGLE SCREEN CINEMAS .PPT 3 .

500 1. three screens or more • Multiplexes account for: x% of the total number of cinema halls y% of total cinema screens in the country • South Indian states together account for x% of the number of theatres in India Market size & growth INR bn 150 100 50 0 +a% +c% +b% Y X Z Theatre distribution Others t% Andhra Pradesh u% LE P M A S 1.PPT .INDIA.e.Cinema exhibition comprises of single-screen and multiplex theatres. with the latter growing rapidly Overview • Key Segments Single and double-screen cinemas Multiplex cinemas.000 2006 2008 2012 Growth of Multiplexes Screens +a% +b% X +c% Z Uttar Pradesh z% y% x% w% Maharashtra Karnataka Source: v% Y Tamil Nadu 500 0 Kerala 2006 2008 2012 4 MULTIPLEX AND SINGLE SCREEN CINEMAS . i.

INDIA.Ticket and F&B sales contribute to bulk of revenues Primary Revenue Ticket Sales F&B Sales Advertising Revenue x% y% z% Primary Costs Distributor’s Share F&B Cost Entertainment Tax x% y% z% Exhibitor Secondary Revenue Parking Charges Management Fee Convenience Fee x% y% z% Secondary Costs Rent / Rev Share Overheads Personnel Cost x% y% z% Ticket w% Advertising Others x% F&B y% z% Parking v% LE P M A S Distributor F&B v% w% Taxes x% Rent y% Others z% Source: MULTIPLEX AND SINGLE SCREEN CINEMAS .PPT 5 .

PPT 6 .Drivers Favorable Demographics Willingness of people to spend on recreation Rising Income levels Demand Side Drivers Supply Side Growth in Film Industry Improving supply of Real Estate Tax Exemptions MULTIPLEX AND SINGLE SCREEN CINEMAS .INDIA.

INDIA.PPT 7 .Challenges Slow down in economy Uncertainty over entertainment tax Alternative modes of entertainment Challenges Piracy Development delays MULTIPLEX AND SINGLE SCREEN CINEMAS .

PPT 8 .Key Trends Producers bypassing distributors Shift to Digital Cinema Trends Alternate content in multiplexes Retail partnerships New format in single screen theatre Source: MULTIPLEX AND SINGLE SCREEN CINEMAS .INDIA.

Single screen segment is unorganized while multiplex segment is highly organized and dominated by five players Competition •Single screen segment is highly fragmented with few owning more than one movie hall •Five players dominate the multiplex industry •Box office revenue breakup in multiplexes: x% from Hollywood movies Over y% from local Hindi language movies Number of screens multiplexes 200 150 Number of Cinemas Number of Screens Y Y Y X X X Y •Occupancy levels Multiplexes : x-y% Single screen cinemas : a-b% •Fierce competition in multiplex segment due to attractive economics and growth potential Leading players have major expansion plans Many new players are planning to enter this industry LE P M A S 100 50 Y X X 0 Company Company Company Company Company x Y z V W Footfalls and Occupancy ratio Occupancy Footfalls (mn) c% b% a% V W d% X % 50 40 30 20 10 0 mn 20 15 10 5 0 U Company X Company Y Company Z Company V Source: MULTIPLEX AND SINGLE SCREEN CINEMAS .INDIA.PPT 9 .

PPT 10 .com MULTIPLEX AND SINGLE SCREEN CINEMAS . For more detailed information or customized research requirements please contact: Natasha Mehta. At its core lies a true value proposition that draws upon a vast knowledge base. Although high standards have been used in preparing this report. and knowledge-software services. and no part may be reproduced without prior written permission. Netscribes (India) Pvt.INDIA. CFA Phone: E-Mail: +65 9651 6382 natasham@netscribes. This document is the sole property of Netscribes (India) Pvt.netscribes. The company’s expertise spans areas of investment & business research.com About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. or Netscribes is not responsible for any loss or damage arising from use of this document.com Subhash Chennuri Phone: E-Mail: +91 98190 59664 subhashr@netscribes. This report is published for general information only. www. content-management services. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Ltd. business & corporate intelligence. Ltd.Thank you for the attention The Single Screen and Multiplex report is a part of Netscribes’ Entertainment Industry Series.

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