FINWISORY CASE STUDY

COMPETITION
By-
Raunak Singh Sehgal
Aonusha Saigal
PROBLEM STATEMENT
PVR Cinema has hired you as a Consultant to solve their problems and

challenges.

Background: With the shift from movie theaters to OTT platforms several

investors are backing out. You need to provide them the reason to stay

along with the solution to increase the profitability of the firm.

 IMPACT ON MOVIE THEATRES DUE TO COVID-19
PANDEMIC
• Beginning of 2020, when COVID-19 hit, it resulted in various restrictions like lockdowns etc.
• This meant a huge loss for every kind of industry that caters to people’s recreation like Movie theatres, plays,
concerts, tourism etc.
• The movie industry still continued its production by shifting their movie releases from Movie theatres to
various OTT platforms like Netflix, Amazon Prime etc. This resulted in huge losses to Movie theatre owners be
it a multiplex or single screen.
• This resulted in no income to movie theatres and losses piling up due to the fixed costs involved in the
business.
• Many single screen owners in small towns shut their movie theatres to cut losses and many investors in
various chain multiplexes to withdraw their investment
• Many movie producers sold their rights to OTT platforms and many held on to their production waiting for
everything to return back to normal.
• Due to this majority population became accustomed to watching movies on OTT platforms rather than the big
screen.
 HOW CAN SITUATION CHANGE IN THE FAVOUR OF
MOVIE THEATRES?
• OTT platforms have gained mass viewership in the past 2 years because of it being cheaper and highly
accessible and it also allows the streaming of different shows as well as live sports etc.
• In recent times few movies like RRR. KFG2 has shown why the theater is better than the OTT platforms.
Because there are certain films which you can enjoy in theaters only.
• Theatre gives you a different and immersive experience which can not be possible on the OTT. A big
screen, amazing sound quality, and an atmosphere that only you can feel in the theatre.
• We can see that the masses still enjoy the theatre experience, but still there has been a huge decline in
box office collections of movies. Most of the recent releases have performed terribly at the box office.
• The makers are also afraid of theatrical releases , thinking what if their movie flops.
• Many people are avoiding spending money on movie tickets as they know, any new movie will be
available on OTT after some time.
• The makers need to delay OTT releases of movies as to gain revenue at the box office.
• Perhaps the biggest downside to the growth of OTTS is the fear of theatres shutting down which will
lead to a loss in jobs. Multiplex chains like INOX and PVR have for years provided employment to
hundreds of workers and invested significantly in infrastructure. If people no longer go to theatres,
these jobs will cease to exist and there will be no returns of the investment in the infrastructure.
INTRODUCTION OF NEW PRODUCTS AND OTHER
SOURCES OF INCOME
• Other than the sale of movie tickets, other sources of revenue are sale of refreshments, advertisements etc
• To generate more revenue , PVR can come up with their own subscription or membership which allows a
subscriber to pay a certain amount every month and can watch a certain number of movies per month. For
example , PVR issues subscription to an individual for ₹349/month and lets him watch 3 Movies a month.
• To generate even more revenue, PVR can tie up with Food delivery giants like Zomato, Swiggy etc , to deliver
food and beverages to customers those who are not at the theatre. Some PVRs and other theatres already do
this, but tying up with them and bringing every PVR in to do this can accelerate things.
• A minor increase like 2-3% in convenience fee while booking tickets will go unnoticed by the consumers but
can result in a great difference in revenues.
• PVR can also come up with their own merchandise as well as get licenses to sell movie merchandise so as to
generate extra income.
• Lucrative Offers can be introduced in the food and beverage section to generate revenue. Fir example
unlimited refills on popcorn or soft drinks on specific days of the week.
• Going paper less on tickets and bills can help cut costs.
DIFFERENCES IN VARIOUS PARTS OF THE COUNTRY
• Our country is highly diversified and we see different behaviour patterns in people around the country.
• We all can agree that OTT can never replace the experience of a movie theatre but the ease of watching
movies at one’s own comfort has provided a boom to the OTT industry.
• If we see sales patterns , we can see that South Indian movies like RRR, KGF etc have had more box
office collection than Bollywood movies, reason being the makers’traditional thinking of theatrical
release of movies rather than OTT releases.
• One great factor coming into play from Southern part of India is the people have utmost respect for
most of the actors and their regional movie industry, that also leads to high footfall in theatres in South
India.
• It has also been noted that most of the regional movies like Punabi movies , Telugu movies still opt for
theatrical release and later on go to OTT.
• Footfall in movie theatres In southern part of India remains higher than North or Central India .
• Pan India releases of Tollywood movies has helped movie theatres gain footfall across the country.
• People now visit movie theatres when they feel like any movie is worth spending money on.
INNOVATIVE IDEAS TO INCREASE FOOTFALL IN MOVIE
THEATRES
• Makers delaying OTT releases and preferring theatrical release.
• PVR to come up with lucrative offers on food and beverages to attract customers.
• PVR can come up with a subscription based model to give a good deal to customers to retain them.
• PVR can come up with their own loyalty program that gives rewards and cashbacks to customers , to
make them come back again.
• PVR can host special screenings other than movies, like highly anticipated live sports to attract footfall.
For example, screening Indo- Pak cricket match.
• Providing luxury features to customers like heated or cooled seats, increased leg room etc.
• PVR getting licences to sell movie merchandise at their theatres, to increase their revenue
THANK YOU