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MULTIPLEX – a class apart
MULTIPLEX – a class apart
Forget the crazy hall of mirrors. Multiplex moguls are giving you crazy hall of screens. Many many of them. But is it serving well? Its not with mirror anymore, it is to do with screens make and multiply celluloid magic, that is. And the businessmen leading the mania for multi-screen movie theaters – the Multiplex Moguls – are almost teeny-bopper in their enthusiasm for the concept that Priya Village Roadshow (PVR) introduced to Indian audience five years ago. India in terms of its theater capacity around 11,962 (approx) theaters is not meeting its consumer demands. And moreover out of this there are about 8,400 permanent theaters which are not good in terms of its consumer base which makes viable only 11screens per million people. Indian film exhibition industry was never as high as it is in present. The government is keen on developing Indian film exhibition industry by providing it with all guns to fire in form of tax and entertainment incentives and exemption. Indian businessmen are never too far from exploiting this opportunity which is seen in form of number of multiplex coming up in our surroundings. This is being well supported with newer film projects with much enhanced quality of viewing and tech support. This is very much suitable to the need of the developing multiplexes. But the film viewing is not the only part of multiplex revenue. Nowadays it is the supplementary services which the multiplex are turning attention to with its greater profitability. This is food and beverages services. This is making the developed upholstery a need of hour which will lead to better revenue model for multiplexes. IT support services by providing computerized ticketing, food stocking levels, movie scheduling a ticket pricing among a host of other things. It is said Software is the new hero at Indian box – office. MULTIPLEX – A CLASS APART.
MULTIPLEX – a class apart
Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 18 19 PARTICULARS Prologue Overview Films Emerging trends and new development Overview Indian film industry Key emerging trends Main Issues faced Tax inference Broaching MULTIPLEXES The MULTIPLEX phenomenon Need for MULTIPLEX Advantages The Maharashtra State Law The Policy Notification Necessities for appellation of MULTIPLEX Upcoming MULTIPLEXES in country In The NEWS Major disadvantage MULTIPLEX – IMAX case study Leader Speak Facts and Figures In the NEWS MULTIPLEX – IMAX case study Pg. No. 8 9 10 11- 12 12-13 14-16 17-18 19 20-31 32 33 34 -35 36- 37 38 – 39 40 41 42 – 47 48 49 -51 52- 54 55 – 56 57-64 65-66
If properly nurtured. evergreen. particularly in comparison with certain newer industries. digital films. The various segments of the Indian entertainment industry. this industry can be one of the largest contributors to exchequer and a dominant player in the new economy. live entertainment. There has been immense growth and improvement in technology. which brought up better forms of entertainment from black and white films to colored. These together comprise the popular. The nebulousness of this industry is probably why the Government has not been able to fully appreciate the size and latent potential of this industry. the rekindling of global interest in Indian culture and art forms. The players in this industry are radio. films etc. the masses from the days of Roman gladiators to Shakespeare to Sholay to Taal. considering the diverse tastes and cultures the industry caters to. to an old traditional theatre to a multiplex. Performers and entertainers since time immemorial have immense themselves in entertainment masses. This industry has been immensely expanded over the years. the potential of this sector is unrivalled. though an integral part of our lives and social fabric. Entertainment – the very name conjures images of performers. music. are the key factors influencing the potential of this industry Overview Films . television. let alone foreign. there is no disputing the fact that ‘ content’ is what will fuel the fire of convergence. ever expanding “Entertainment Industry”. of color. This industry is unique compared to any other Indian industry. The demand from expatriate Indians. of pleasure and of relaxation. television. radio. live entertainment to name a few. when it comes to Government support and encouragement.4 MULTIPLEX – a class apart The entertainment industry has been evolved because of the human need for entertainment. Given the inevitable convergence between entertainment and telecommunication. films. viz. All businesses can go down but entertainment industry is ever expanding as a rich or a poor person requires entertainment from some or the other source. This industry has always been successful in drawing. of sagas. and the promise of convergence. has always been treated like children of a lesser God. Each and every one of us has been touched by the various facets of the entertainment industry. While technology drives this revolution.
Reduction and rationalization of entertainment tax: The entertainment tax in India is much higher than in other Asian countries. Emerging Trends and New Developments . exports of MULTIPLEX – a class apart PROJECTED REVENUES FOR THE GOVT 2005 2004 2003 2002 2001 2000 1999 250 500 2000 1600 1200 3400 4500 Rupees in crore film and animation software and emerging revenue sources such as web-casting. Expansion in exhibition infrastructure: At 12. In order to boost revenues. The State Governments should consider doing away with this regulation. The Government should reduce and standardize entertainment tax to encourage fresh investment in theatre infrastructure. The industry/ Government should take the following measures for the segment to achieve its growth potential: Diversification: Film companies should diversify into other segments of the entertainment industry like their global peers.5 mn screens per mn people. 13 bn. with the industry budget increasing at about 10% per annum over the last 5 years. in terms of costs. the segment is estimated to grow at 25% per annum to a size of about Rs. availability of finance from institutional sources. The future growth of the segment will be driven by expansion in exhibition infrastructure and development of multiplexes. has rendered operations of numerous theatres unprofitable. etc. the level and nature of taxation varies from state to state. This will not only mitigate risk associated with films but also enable the companies to cross promote their offerings across several delivery platforms in the era of convergence. present in some states. 40 bn by FY2005. Besides. there is a compelling need to expand and spruce up exhibition infrastructure. is estimated at Rs. Ceilings on ticket rates: This regulation. On account of the above factors. film exhibition infrastructure in India is much lower than in developed countries and woefully inadequate for the large population.5 The current size of the films segment.
exports. In order to capitalize on this fast growth ahead. cable and satellite advertising.6 MULTIPLEX – a class apart Some of the major fast growing segments in the domestic industry include the music. companies are making large-scale investments in terms of infrastructure. The export segment is also expected to increase from around Rs 4. the Mode Family has invested around Rs 1. For instance.000 million to around Rs 10. . majors such as Zee Telefilms and Eenadu TV are expanding their horizons to other markets as well.000 million during the same period.000 million by the end of the current year. The domestic music industry was estimated at around Rs 17. Revenues from the animation segment are also forecasted to increase from Rs 2. At the same time. animation and FM.000 million in the year 1999 and is projected to grow to around Rs 30. infrastructure.200 million to nearly Rs 4.500 million towards the construction of multiplexes that can screen around 16 films simultaneously.400 million by the end of the current year.
Malayalam. folk forms and above all a wide-ranging and abiding appeal to the heart. Telegu. social communication. . performing arts. art. Kannada and Bengali language industries are also significant. Among the impressive forecasts in this report: production investment will rise 70% by 2006. like telecommunications and information technology. the mind and the conscience. artistic expression.7 MULTIPLEX – a class apart Overview of the Indian film industry Indian cinema has come a long way from the shaky flickering images and grating noises and sounds to a very sophisticated state-of-the-art technology for creation and projection of image and sound track. Behind these measures lies a perception that the film industry. The film industry has grown multidimensionally with unique blend of commerce. event managers are all hankering for Indian entertainment products Indian film business is set for a period of sustained growth. The most important trend for the Indian entertainment industry is that the number of Indians scattered around the world are numbering close to the affluent population back in India. star glamour. TV/cable channel operators. The Bollywood industry's output of over 240 films in 2000 made it the largest of India's film industries. the Gulf States. USA. India has not one film industry but several. And as entertainment becomes a strong ethnic bond for Indians in alien lands. outside of the US. foreign films' theatrical rentals in India will also rise steeply. is one that can leverage the country's highly skilled workforce and low costs to create an internationally competitive economy. outside Hyderabad (AP) is the biggest film single center in the world for making films. Ramoji Film City. literary adjuncts. the Indian film industry's export revenues will climb 120% over the same period. theatre owners. improving access to bank finance and reforming taxation laws to encourage exports. between them producing over 500 films in 2000. the Tamil. Indian government is moving to encourage corporatisation of the industry. craft. Valuable export markets have already been developed in countries like the UK.
offer legally enforceable contracts and a completion bond. especially for new cinemas. Mukta Arts was the first to raise equity finance through an initial public offering in 2000. It invested 100 crores in 2001 and has set aside the same sum for 2002.000 hardtops (to which can be added another 3. United Cinemas International. This marks the break with funding from private sources which charge interest at a rate of up to 36-48% compared to Ibis’s 16%. which is growing as many producers can see the advantages of moving from a family business to a corporate entity. Cinema equipment suppliers. The changing landscape of the Indian film industry and the Key emerging trends (1). It was also the first to take out film insurance.000 mobile cinemas). are already enjoying good business as local operators seek to upgrade their venues. it now seems India will at long last get its multiplex boom. entertainment taxes are being massaged downwards. though in practice this will mostly mean multiscreening of existing large halls by their Indian owners. (3). After a number of false starts involving foreign investors like Warner Bros. The Indian film industry is showing signs of transformation at the operating level as it begins to embrace corporatisation and organized business structures.8 MULTIPLEX – a class apart South Africa & Kenya. Other producers such as Aamir Khan and Yash Raj Films are following the trend. It is forming a consortium with commercial banks and institutions to extend film financing. the introduction of institutional financing across the film value chain of production. together with construction of relatively small new multiplex cinemas. . (2). exhibition and distribution will transform the Indian film industry. In order to encourage modernization of the country's 9. and import duties on cinema equipment have been cut. however. Kodak and Decatron. This process has been started by the Industrial Development Bank of India (IDBI). The Indian government is convinced of the link between a healthy theatrical exhibition industry and film industry success. which has adopted a scheme for financing films.
(7). The central government has also announced that operators setting up multiplexes in non-metropolitan areas will be eligible for a deduction of 50% of their taxable profits for five years.9 MULTIPLEX – a class apart (4). (6). Film insurance is becoming an established concept. Pad Malaya Telefilms. In March 2002 the government reduced the basic duty on certain elements of studio equipment and digital projection is expected to be a new area of growth. Tips Industries and Devgan Entertainment move into film production. Zee Telefilms. (8). Organized corporate players are now investing in this market while single screen owners are able to access bank and financial institution loans to upgrade to multiplexes. Many producers are adopting a more structured approach to film production. (9). The impetus for the multiplex boom has been provided by entertainment tax incentives introduced by state governments. Cable and satellite television is also becoming an important driver of content and financier of film production. Canada. India is studying various funding models including those of Australia. Indian cinema is beginning to adopt digital technology. There is an increase in the production of niche films with smaller budgets as established television companies like Pritish Nandy Communications. Increasing numbers of films are now seeking insurance against loss and damages including time and cost of over-runs. to develop a film financing structure for its own film industry which addresses the needs of both the large players as well as independent film producers. Over 1. as evidenced by the Oscar-nominated film Lagaan. New practices include continuous shooting schedules and the use of better technology. the US and Germany. (5). . and a greater focus on marketing and packaging as seen by Kabhi Khushi Kabhi Gam.000 multiplexes with between 150-400 seats are expected to be built in the next few years. Taal was the first film to get insured and United India Insurance the first company to introduce a policy for film production along with producer Mukta Arts. Balaji Telefilms.
a significant number of private organizations delivering such training. This leads to a serious shortage of screening facilities in India. With the exception of the Film Institute in Pune. film insurance and film completion bonds. There are however. and scriptwriting or cinematography skills. Halls with smaller capacities also are better for niche films. The industry is facing an acute shortage of trained personnel and there is an urgent need to establish institutions providing the latest technical training. Maharashtra Haryana. (4) Training and education: . there is no credible organization in India providing professional training in acting. private equity.There is a dearth of technical and creative talent in India. public. . The industry also needs to adopt security mechanisms such as legal contracts with artists and other agencies. The film industry needs to explore other revenue streams such as home video. The success rate for movies has gone down drastically since the last year. (3) Lack of exhibition and distribution infrastructure: . bank and institutional financing into the sector. The challenge facing the major production houses is to become corporate entities . (2) Lack of screening facilities: . cable television rights. The high level of taxation has led to under investment in the exhibition infrastructure resulting in decrepit cinema halls. States like Rajasthan. unorganized financing and piracy: -have been the major barriers to attracting investment from venture capital. directing. General attendances are only 35% of capacity.to implement sound accounting practices and adopt corporate governance as a code of conduct.India has around 12900 cinema screens (a UN Study).The average seating capacity of a theatre in India is between 700-800. video on demand and merchandising. The economics for a multiplex works better. High taxation has also led to exhibitors under-reporting the levels of ticket sales to avoid paying taxes and sharing the box office profits with the producers/directors and distributors. Uttar Pradesh and Madhya Pradesh have given tax breaks for multiplexes. Even the existing screens aren’t technically up to the standards required. Most of them are also closing down or being converted to a multiplex or shopping malls.10 MULTIPLEX – a class apart The main issues faced by the film industry (1) A lack of transparency. pay per view. DVD sales and rentals.
Examples like Ramoji Rao City Studio in Hyderabad. India produces the largest number of movies in the world. which in turn would encourage them to spend more to upgrade the standards. This would generate higher revenues for the industry. The primary cause is lack of facilities.There is a serious dearth of movie production facilities in India. The entire time schedule documented D. . Theatres should be allowed to collect higher revenues for more popular movies by temporarily increasing (or decreasing in the case of a non – hit movie) the ticket prices. Finance is tapped from family friends and other sources with high rate f interest (up to 40%) being charged. With the Film industry being granted the official ‘industry status’.In terms of volume. The answer could be flexible ticket pricing. It has generally been family run companies with no access to institutional finance. implementation is poor. Documented scripts in place B. Though there are adequate creative ideas. Legally enforceable contracts with the artists and technicians C. This means that the company has to clearly define the following: A. This is because corporate structure in place is a pre requisite for such a venture. The producer has to make sure the filming activity is completed in time and there are no time and cost overruns. it has propelled companies like Mukta Arts to go in for institutional sources. A system could perhaps be introduced whereby the film industry or the theatre owners to whom it rightfully belongs derive this advantage.11 MULTIPLEX – a class apart (5) Up gradation of existing movie theatres -The existing halls need to be renovated so that more viewers are attracted to cinema house. Most of the movies are produced at shoestring budget. Black marketing of tickets is common feature whose advantage is taken by unsocial elements. Still not many Film companies have availed finance from these sources. (7) Financing: . Whistling Woods from the house of Mukta Arts are recent examples of where the country is headed. This can possibly be achieved by introducing the concept of flexible pricing of tickets. (6) Lack of adequate infrastructure for movie production: . But the Film industry structure has been highly non-corporatized till date. As per the current market trend most hall owners don’t earn enough to be able to upgrade the existing theatres. 800 on an average annually.
To combat the problem the government has set up a task group to identify anti-piracy measures. (8) Piracy: .12 MULTIPLEX – a class apart Companies like Hinduja TMT. Current responsibility is divided across multiple government and regulatory bodies such as the Ministry of Information and Broadcasting for film censorship.Indian film industry loses about Rs. are entering this arena while the emerging finance sources encourage corporate to invest: These sources of finance are available only to companies and not to individuals. and UTV which made Fiza. CII & CRISIL are also working at developing a financing model that would enable the banks to weigh the risks in this industry. The cable industry on the other hand finds it difficult to check it on its own. there is not disincentive for anyone to stop showing such movies. the consumer switches to the other. the promotion of organized retailing and the introduction of 'source identification' codes on each unit. Perhaps the most significant obstacle relating to piracy is the lack of a centralized government body to regulate all matters concerning the film industry. the administration finds it difficult to check it. And since there isn’t strict enforcement of the laws. The fines paid when caught are inadequate and so is the punishment. The nature of piracy in the Entertainment industry is such that since the consumer demands the pirated product. . the launch of a campaign of wide-spread raiding operations.300 crores annually to piracy. The operators claim that even the film industry is not clear as to which rights are to be given to the cable operators and how to distinguish them from satellite rights of movies. the problem is enforcement. They also cite the non-cooperation of cable operators as a major handicap in their efforts to curb piracy. FICCI and finance house Rabo India have made recommendations to the task group on the issue which include the need to educate the public on the menace of piracy. which has earmarked Rs 20 crores for Film financing this year. Last year alone it is estimated that unlawful copying and distribution cost the industry $66 million in revenues. The cable operators cite this reason among others as to why it is difficult for them to control it. If one operator does not showcase a pirated movie. The industry is worried that while the avenues of piracy are increasing at an alarming rate and the laws are either inadequate and where they aren’t. thus the need for corporatisation. The Confederation of Indian Industry's Enter media group. Youth and Sport) for intellectual property rights protection and copyright violation issues. the Ministry of Finance for taxation issues and the Ministry for HRD (which controls Education.
is leading to a cascading effect. The film sector has been given industry status by the Government. which ensures growth in several sectors. which goes up to even 100 % and beyond. Apart from giving the industry status to film segment. service tax for film production sector cannot be passed on to the final consumer. and live entertainment and event management. No abatement has been offered with respect to this service tax on broadcast services. requirement of raw material and plant requirement for three types is the same. No excise duty is levied on CD ROMs but there is a levy on audio CDs and video CDs although the manufacturing process. The sector is reeling under a heavy tax burden of entertainment tax. A 4 % excise duty has been imposed on MRP with regard to audiocassettes. which leads to multiple taxation on production of programme and broadcasting content. Unlike other categories. radio. the Indian Entertainment Industry comprises films. music. The budgetary support of the Ministry of Information and Broadcasting is being increased by 22 % to Rs 415 crore for the year 2002 – 2003.13 MULTIPLEX – a class apart Tax Inference To recapitulate. The service tax on broadcast service. 2002 and March 31. cable television. 2005. and . television software. This will result into an outgo of about Rs 60 crores from the music industry alone. Some other benefits announced for the entertainment sector include: reduction of custom duty on certain earth equipment and studio equipment from 35 % to 25 % and allowing for the next five years a deduction of 50 % of the profits earned by units constructing and operating multiplex theatres in non metropolitan towns if such multiplex theatre is constructed between April 1. television broadcasting. Estimates show that the Entertainment Industry is currently generating revenue of Rs 100 billion and this will increase to Rs 315 billion by the year 2005. These measures including allowing listing of a company with 10 % public ownership akin to the information technology industry television broadcasting has been privatized. the Government has announced several measures that can give the critical push to the overall growth of the entertainment sector. Simultaneously the Government intends to bring the convergence bill.
ceilings on ticket rates and expansion of exhibition infrastructure. reduction and rationalization of entertainment tax. The availability of finance through institutional sources is imperative for this expansion and diversification. particularly in the rural segment is expected to grow by 12 % in the coming years. The penetration of cable TV. The DTH system will give a new dimension to the television broadcasting in the coming days. One of the major sectors of the industry is the film segment. The subscription revenues of the television channels are estimated to be around Rs 25 billion currently. This is a growth of 15 % compared with the previous levels of sales. The present size of the television segment is estimated to be Rs 35 billion. . but the intensification of and expansion of exhibition infrastructure and development of multiplexes. The average growth of budget for films has been increasing by 15 % p.a. There are 35 million households having access to about several channels through cable networks. In the year 2000. The music industry is dominated by MC sales rather than CDs.14 MULTIPLEX – a class apart renders the regulatory mechanism more effective. The growth of music industry has been astounding in recent years. Stream lining is also called for in the areas of corporatisation of film companies. The growth of the film industry depends not only on the basic activities like film production and distribution. The music industry in India is expected to grow at a rate of 18 – 20 % in the coming years. The current size of this particular segment is worth 22 billion. the industry sold an estimated 250 million music cassettes and 15 million compact discs.
Major movie production houses and media companies. language and physical barriers. from the first Indian song to Chamma Chamma in Moulin Rouge. Columbia-Tristar/Sony and Warner Brothers. United Artists. Chennai (then Madras) had the Devi complex and Diamond/Sapphire/Emerald complex over three decades ago. From the release of Imperial Film Company's March 14. First of all. fast moving and variety-loving consumer who wants more than just one film under a single roof Multiplexes have become just a rage that most of the old cine complexes are converting to multiplexes. 1931 to the screening of Armaan in May 2003. what is a multiplex and how is it different from a . Paramount. including 20th Century Fox. It emerged out of the necessity faced by the cinema owner to cater to the busy. But the US had set up movie complexes in the suburbs about twenty years back and this concept is now spreading all over the world. operate multiplexes all over the world. while Mumbai had Shivam/Satyam/Sundaram complex for the same period of time. The magical word in cinemas today is multiplex. the Indian film industry or our Bollywood has traversed a victorious journey surpassing criticism. from the success of Lagaan in Shanghai to Taal in the UK. In this journey even the facet of the cinemas has immensely changed.15 MULTIPLEX – a class apart Broaching multiplexes in India Introduction to Multiplex Multiplexes are not a new concept in India.
The Multiplex Phenomenon: The growing share of entertainment expenditure in the disposable income pie is driving a revolution around India's favorite entertainment option today . Columbia-Tristar/Sony. In India. Paramount. the possible income generating channels in a multiplex can include: . however. Globally.Movies. United Artists. it is an ultra-sophisticated complex with a variety of retail activities revolving around it. do not necessarily center around a single anchor. The revenue streams. The multiplex model is based on the concept of umbrella entertainment built around a primary anchor . and Warner Bros. multiplexes are operated primarily by major movie production houses and media conglomerates including the likes of 20th Century. a multiplex with 4 theatres and a host of other entertainment options including restaurants. Today it is not just several screens. Multiplexes arrived in India in June 1997 when Priya Village Roadshow was the first to pioneer the concept with its initial establishment PVR Anupam.movies. music centers. gaming centers etc. Typically. The primary reason for the popularity of this business model has been the escalating cost of movie distribution as well as a hedging opportunity to run multiple revenue streams around self owned content. The combination of cinema with other services and facilities has led to the burgeoning growth of multiplexes around the country. says the Oxford Dictionary. the movie industry is not quite as developed and organized as the industry in USA.16 MULTIPLEX – a class apart cinema hall? It is a large cinema or a movie theatre with several separate movie screens.
inconsistent.e. It has aligned with and extended the transformation of India’s urban milieus being re-visioned within the framework of consumerism. the films on its screens. But in terms of its exhibit. The increasingly curious mix of parallel. these lend to it markings of an indigenous. and sustained by the retail boom unleashed by the economic liberalization policy of 1991. Though patterned along the ‘shopping mall’ model of the multiplex as developed and prevalent in the West. multiplexes earn lot more from other revenue sources as compared to box office collections. Since its inauguration in 1997. But to locate its persona and impact as being solely the affections stemming thereof would in some ways amount to a limited and inadequately informed view. regional and art cinema along with the mainstream. such that the Indian multiplex has come to position itself.17 MULTIPLEX – a class apart The box office collections Rent from display systems Food & beverage Product launch rentals Promotions by companies seeking to promote consumer goods More often than not. not so . possibly transitional yet aggressively attentive. it makes for a space that mirrors a complex cinematic multiplicity. coinciding with the rise of disposable incomes in the hands of the urban Indian family. is what distinguishes most multiplexes in India. the Indian multiplex site sports all the features of an upmarket turf. Incoherent. the Indian multiplex experience has been smattered with instances that stand in opposition to its immediate environs. self-derived and developed nature. i. The multiplex’s steady proliferation in the metropolis’s and simultaneous penetration into some smaller cities and towns testifies to its increasing popularity. It is unlikely that India’s experience with the multiplex form of cinematic exhibition can be comprehended without understanding the mechanisms of the liberalized economy in which it emanated. both domestic and foreign.
It is only when new multiplexes are constructed that seating capacity has recorded an increase. as by being a theatre for accessing the ‘latest’ from a wide spread of cinematic fare – mainstream or fringe – in comfortable. enhancing access to films. or correspond with. but have also identified and accommodated overlapping tastes and preferences by readying access to fare. establish its distinction and engage the audiences in a varying film viewing exercise. which may have previously been considered as lacking numerical encouragement vital for profitability. a single screen in a multiplex seats a far smaller audience. given their steadily improving production quality and contact with newer territories. the existing common needs of their audiences. bodies like the National Film Development Corporation (NFDC) have regularly stepped in to support them financially alongside promoting them at foras like film festivals and national network television. While the former. the number of seats has not increased in equal proportion.18 MULTIPLEX – a class apart much by identifying with particular kinds of films. While the capacity at a single screen cinema is usually in the region of 850 to 1000 seats. multiplexes all over the country are making for variables that don’t just originate in. colourful and inviting surroundings. easily if not as promptly. It has emerged as comprising a mix of seemingly contradictory strains wherein central and peripheral tendencies coexist. . Given the limited response they face. mostly Bollywood films which. can be termed as appropriating varying audience segments to stabilize and secure its own position. mostly low budget. as of the moment. More important than simply the number of screens is the fact that even though more cinemas are getting converted and new multiplexes are being set up. Their penetration into the multiplex can first be located in simple mathematics – the proliferation of screens. Most art films and much of parallel cinema have usually faced reluctance from distributors and exhibitors alike. Taking cues from each other. aligned quickly with the multiplex’s swanky appearance. penetrated into the multiplex without bearing any proximity with the site or its vicinity which is enlivened with an array of branded local and global products and services. non-narrative films. the latter too. especially overseas markets. or sometimes a little over that. The multiplex intervention.
Besides. The pattern continued. offer the same product at a lower price. it tends to exclude the average Bollywood film. mostly familial films. two with a capacity of over 300 seats and the others with 150 seats. big budget. they could easily be integrated in the multiplex’s film menu. Multiplexes have charted cautiously in relation to industry films. though non-mainstream films are unlikely to attract audiences of the size as a conventional Bollywood film would. However. but because they are more accessible. Anupam PVR. their showings are still lucrative because the numbers they command constitute a greater. multiplexes have not depended entirely on conventional films as they are in any case competing with the single screen cinemas which draw larger audiences. a thriving video piracy industry coupled with a deep penetration of cable television meant that the multiplex settled for exhibiting selected films – usually the awaited. Since non-mainstream films are of varying lengths and usually shorter than an average feature. Further. They usually outnumber multiplexes. was converted to four screens. This is not only because they have a greater seating capacity. the multiplex has not followed the conventional 12-3-6-9 time schedule as prevalent in most cinemas. India’s first multiplex situated in Delhi. Consequently. In relation to Bollywood. publicized. This created opportunity to schedule and programme films on the different screens. more importantly. But in . These films coincide with the multiplex’s redefinition of cinema as a family outing comprising other amenities like food and games. Since it needs only a section that would guarantee a sell out of its limited seats being offered at a higher rate. though not equally. are located within easy reach and. more competitive marginal value.19 MULTIPLEX – a class apart Because when a cinema is converted from one to multiple screens the seats get divided among them. with the result that even when a new multiplex is constructed the seating capacity per screen rarely parallels that of a single screen hall. The ability to manipulate schedules allowed for films of varying lengths to be accommodated. shaping into a trend. the number of admissions per screen stands far reduced at the multiplex.
they compete for space with films from a flourishing native industry that appeal to a wider audience. employment and training or just proximity – this gets converted into overlapping cinematic preferences. However. multiplexes get smaller. The variation is not simply of language. which previously may have held reservations towards cinema going. given the lack of facilities like air-conditioning. comprising only Hindi and English films). The apprehension towards foreign films is not determined by the urban or linguistic divide only. on the screens. As one moves away from the Hindi heartland. Initially. multiplexes find themselves playing on limited ground as releases in non-western territories are usually a couple of months after the film’s release in home territories. being composed of fewer screens and English films (mostly well advertised ones) constitute a smaller portion of the assortment. Here films in the immediate native language get complemented with those from other regions. but extends to genre as well. one finds multiplexes located in posh localities exhibiting foreign films along with substantial numbers of non-mainstream films. the film menu tilts correspondingly in favour of native languages and no longer reads bilingually (i.20 MULTIPLEX – a class apart so doing it has managed to elicit viewership from upper class segments. because despite their popularity English films are rarely accessed by nonEnglish speaking. These films seldom transcend metropolis’s and large cities and. illiterate and non-affluent audiences. when located in the lower income group areas.e. or regions such as South India. in differing dialects. And the access to films through DVDs before a theatrical release (at least in metropolis’s) has implied a replication of the approach as adopted towards Bollywood films. Within the different income regions of say a metropolis itself. . In relation to Hollywood films too. With the multiple screens accommodating a spillover of linguistic access that may be rooted in a host of factors – education. That changed soon. including treatment in relation to content and construction in terms of form. upscale interiors and so on. Neither is it always trilingual. migration. say in cities like Mumbai and Delhi. multiplexes were projected primarily as theatres for English films.
But the concessions are accompanied with conditionalities aimed to prevent concentration of multiplexes in select regions and in some cases to promote regional cinema. a few low-budget. aesthetic and language. Sociological in their orientations while dealing with the diaspora. The multiplex also constitutes the primary site for the increasing territory of films directed by overseas Indians. Given the fast pace of its spread. familial scenarios that involve the play of customs and rituals along with the essential element of entertainment materializing in song and dance.21 MULTIPLEX – a class apart Responses at the multiplex to the non-mainstream films have not been completely negative. despite a cast comprising prominent film stars. film exhibitors and distributors. non-mainstream films. film processing companies and media conglomerates. Explicated mostly in humorous. almost always under three hours. these present traditions and lifestyles as altered by being away from the homeland. In fact. the multiplex site . these films are developed along non-native patterns of construction. Though films surrounded with more publicity are played at a few single screen halls as well. and the polarization between the single screen and multiplex cinemas stands further sharpened. central and state governments are encouraging major investment and offering sops to investors and developers who comprise real estate entities. Such a trend coupled with the entry of vernacular films into non-native regional territories. they highlight native habits and attitudes as seen from a ‘foreign’ eye. its acumen towards cinema of diverse kinds and a long gestation period. the multiplex is more promptly identified with non-native cinema. could only secure screening at multiplexes in some territories. Despite being located within the native community and thus being readily decipherable. A microcosm of retail culture including significant portions of global brand names. they too like other foreign films have enjoyed limited appeal not extending beyond the largely educated audience that’s bilingual and enjoys familiarity with diaspora experiences and attitudes. Add to that the fate of films like Fire (1997). whose representations span both the Indian diaspora and the home-land. and an active Indo-western intersection has also facilitated the entry of non-mainstream English and non-English foreign films into some multiplexes. Their duration too is a variable. and in terms of the homeland.
MULTIPLEX – a class apart makes for the kind of up-beat location that coincides with government attempts to alter
conventional images and all that compliments the bandwagon. It also enables foreign tourists to access cinema. While multiplexes may be emerging as local macrocosms of native and foreign cinema, they constitute a kind of exception when compared with their western counterparts, most of who pressured by their functional mechanisms and operating in advanced, more developed markets characterized by deeply entrenched segmentation which extends into film exhibition as well, have ended up institutionalizing and popularizing the blockbuster syndrome. It is thus necessary to recollect a few trends that may not bear directly on the subject but do not bypass it either, having operated upon audiences as much as the multiplex itself has.
First, the multiplex is preceded by and concurrent with a tradition in parallel cinema that
reached a peak in the 1970s. More recently a trend in rethinking, innovative cinema has gained prominence for confronting pressing social and political issues like feudalism, sexuality, terrorism and separatist movements within the scale of mainstream films. These films occupy the space between the mainstream and art film, reaching audiences without the essential melodrama typical of Bollywood films in which characters are foregrounded, on occasions distanced, from their milieu. These films situate sharply defined characters as the site where the opposing pulls of an irreconcilable crisis operate. They have gained critical acclaim at home and abroad alongside box office endorsement. While the attraction of some can be located in the dynamics of stardom and a heady mix of song and dance, all interpellate the audience through commonplace situations, traumas and experiences. Despite the difficulties it faces, the fringe comprising art and off-beat films has been sustained both independently and in collaboration with firmly positioned industry players. Similarly, it is important to remember that non-Hollywood cinema too has commanded an audience promoted by international film festivals, film study circles, national network television and cross-cultural exchange programmes with other nations. The preponderance of single screen cinemas has not come in the way of screening critically acclaimed foreign films from time to time.
MULTIPLEX – a class apart Second, in the backdrop of a film industry steeped in financial crisis, the small budget
and independent films have received considerable approval and encouragement when compared with the industry product. With off-beat content and newer forms, their slice of the cinema is expanding. For them too, the multiplex constitutes a crucial exhibition space, given that they target specific rather than mass audiences.
Third, and to further unpack the possibilities at the multiplex, a brief recap of the
functional impulse/s for it is vital. Upon introduction of liberalization, retail chains emerged and expanded as the momentum of consumerism slowly rose. Consequently, retail spaces steadily gained premium over commercial ones. Strategies to cover costs had to be revised. While rethinking products, prices and efficiency, retailers linked promotions, fun and entertainment to penetrate bigger chunks of the market and secure customer loyalty through customization. In a climate of alliances and add-ons like food joints, the concept of holistic family entertainment experiences gained patronage. In such a scenario, the immensely popular leisure activity far older than television in India – cinema – suffering from inadequate exhibition facilities intersected with aggressive retailing and helped prompt the multiplex. This served to revive the diminishing cinema going habit by enticing audiences away from their television sets, with their clutter of imagery from all over the world drawing upon the cable and satellite boom. The desire for the image now combined with other leisure activities and occupations. Once in place, the multiplex developed a counter to the unitary propensity of the single screen hall, founded on exclusion, perpetuating homogeneity and cultivating committed audience segments. While single screen cinemas identify themselves with films of particular kinds, say the Hindi masala and blockbuster, the English, or the porn movie, the multiplex has capitalized on an inclusive tendency to motivate and assemble diverse audiences. On the one hand it has contained the influence of embourgeoising forces within its edifice, allowing on its screens the interplay of alternative and mainstream or conventional strains. Further it has limited contact with the West to no more than the
MULTIPLEX – a class apart fashioning of its site, preventing the hegemony of either Hollywood blockbusters as the
result of a partial global encounter, or conventional Bollywood films that enjoy a panlinguistic and cultural appeal cutting across regional, religious, class and other variants. On the other hand, it has remained an urban, largely middle and upper middle class leisure pursuit, with its highly priced tickets excluding the masses crowded in the lower regions of the income graph. While the masses take to cinema readily, given their financial capacity and lack of identification with the plush appearance, products and services at the multiplex – in any case targeted at the socially and economically mobile sections – this numerically significant chunk of audience has remained confined to the outer edges of the multiplex experience. And it is unlikely that the dynamics of the multiplex in its present avatar will manage to secure their participation. Spatially too, multiplexes can mostly be spotted in affluent neighbourhoods, within the easy reach and concentration of young audiences. So far a nascent experience, the number of multiplexes is soon slated to rise sharply. The full impact of its rapid spread, particularly over the last two years, is yet to be determined given the long gestation periods and concentration in and around selected pockets. As a result, it is too early to draw any conclusions about its impact or chart any definite course for its future. Going by the variables that are emerging in response to the needs of immediate audiences, and the fact that in its present form it has acknowledged cinema as composed of diverse possibilities, the multiplex may in the future enhance segmentation and result in branded theatres exhibiting particular fare, say the art, mainstream, or foreign films, maybe even documentaries. The mechanisms of competition would then come into operation and influence aspects such as ticket pricing. As a space commanding flexibility and an ease with maneuverability, the multiplex, concurrent as it is with the digital revolution, could even aid in the promotion of the format. Not simply by providing accompanying exhibition facilities like digital projection or digital sound, but by making available alternative display spaces for digital films that bear potential as a distinct genre. With the conveniences of its apparatuses, film form is
25 MULTIPLEX – a class apart already witnessing alteration in some parts of the world. non-affluent territories? Will the multiplex alter existing film form so as to align with its own plush and colourful appearance? Or will it encourage alternative films? Its dispersal away from well-heeled spaces is crucial if the intention is for it to emerge as at least a pan-urban. there are definitely more films to choose from. sporadic and transitional as it may be. not necessarily of conventional theatre size. Typically. the possibilities of the multiplex there remain suspect. From its present shape. film exhibition centers particularly in the metros have to compete with various other avenues of entertainment available to the public at large: - . emerge as the dominant trend. Redefining film form and content. But in the meanwhile cinema stands redefined for the Indian viewer as composed of fare other than the regular three-hour film. digital films could prompt and occupy viewing spaces as differing from conventional films and embody forms like the ‘walk through’ film that may require simultaneous projection on more than one screen. In Mumbai a multiplex is one with a minimum of four screens and 1250 cinema seats. aiding its penetration into other urban and semi urban. leading to branded multiplexes? Or will encouragement from the various governments drive away the multiplex. if not a pan-Indian experience. and push doors for further segregation and institutionalization of segmented audiences. and filmmakers without access to elaborate film equipment have received a fillip from this technology. without their committed implementation and in the absence of the shopping mall culture in other locales. there only emerge more queries than any concrete predictions. Well meaning as government policies may be. Will the rapid spread of the multiplex and its concentration in particular zones with audiences constituting existing and potential markets for the retail entities supporting the multiplex. New territories in relation to content are being explored by a breed of filmmakers who are exploiting the ease of accessibility accompanying the medium. From the present assortment at least. And the choices aren’t merely linguistic. In other parts of Maharashtra the specification is for three screens and minimum capacity of 1000 seats.
the multiplex model is built around a primary anchor . the single screen theatre will also benefit from the growth in multiplexes. cable television. a potential viewer rarely goes home without seeing a movie though it may not be the one he first came to view. state of art technology. Now with various state governments announcing Tax Holidays for Cineplex (multiple movie theatre) projects. Priya Village Roadshow (a joint venture between Priya exhibitors of the Bijli Group of Companies and Village Roadshow Limited of Australia) has been pulling in crowds with the provision of wholesome one stop entertainment. rent from display systems. The first Indian multiplex set up in Delhi. ergonomic seating. restaurant rentals. The mantra of renovation and up gradation has given a fresh lease of life to theatres in cities like Mumbai. The only way to pull people back to theatres is to make theatres attractive. At the same time. Multiplexes. thereby offering the audience more than what they expect out of a theatre. Germany and Australia tripled with the multiplex and theatre boom and a similar growth could be expected in India with development of multiplexes/ theatres. theatre admissions in England. and home video B. Among the major foreign players interested in multiplexes are Columbia Tri-Star. They can choose to watch the movie on satellite film channels. Since more than one movie is screened in a multiplex at any given time. The revenue generating channels in a multiplex includes box-office collections. more multinationals are preparing a foray into India. comfortable and equipped with the latest amenities. According to the industry sources. have the potential to radically alter the entertainment business in time to come. multiple screen choices. Typically. food and beverage collections.26 MULTIPLEX – a class apart A. The Gujarat Government had announced a seven-year entertainment tax holiday for such projects. With the growth in the theatre going population. which were reeling under a severe financial crunch and succumbing to commercial pressures. These announcements has been have given a definite boost to those planning to build multiplexes. multiplexes should not be viewed as a threat to the one screen theatre. eye catching architecture and top of the line cafes and food courts.movies. Multiplex embodies the luxurious amenities of the modern day theatre. Eastman Kodak and John Buck and Company. They can choose to spend the time and money on other sources of entertainment such as video games. product launch rentals and promotions by . the hot new concept in movie exhibition. amusement parks etc.
but movies are the main pull of such complexes. . There is healthy competition among the multiplexes and the initial high-ticket rates will definitely come down to more acceptable levels. Though this scheme has not boosted the existing single screen cinema theatres. The smaller cinema halls provide the owner flexibility to rotate the movies economically. In fact. The other revenue streams are often larger than box-office collections. becoming part of the “broad spectrum” family entertainment. The threat of over-capacity of cinema seats has not dampened the multiplex mania currently prevailing all over India. This is good for consumers and film buffs. these may actually spur the declining cinema market in India. There are about 1000 screens planned over the next five years all over the country. Several of these multiplexes are being located in shopping complexes and average an investment of around Rs.27 MULTIPLEX – a class apart companies. several theatres are planning to upgrade to the multiplex concept and hence provide a boost to the big screen cinema. The screens per one million population for India are only 11 as compared to 117 in the US and 77 in France.000 screens. joining the existing 12. which is great for a shopping mall. The cinema going concept has changed drastically.200 footfalls daily. 5 crore for a four-screen theatre. Having a multiplex ensures about 1.
during the 90's .3 0.28 MULTIPLEX – a class apart Need for Multiplex Though the Indian entertainment industry had been growing @ 33 % for the last few years. 21 to 36 billion India in terms of its theater capacity around 11.400 permanent theaters which are not good in terms of its consumer base which makes viable only 11screens per million people.56 2.962 India (APPROX) 5. attendance had decreased and box office collections had reduced in real terms.4 Of capita visits per collections office in million dollars 285 to 729 38 to 109 0. In comparison. Attendance in per Box No. the number of screens had gone down.2 to 0.962 (approx) theaters is not meeting its consumer demands.63 Rs.7 1. This creates a need for more and more screens and much developed exhibition centers for movie and movie goers. . Country Screens annum Australia New Zealand Thailand 850 to 1800 140 to 320 180 to 410 11.25 to 3. And moreover out of this there are about 8.the number of screens had increased by 100 %.64 to 2.directly due to the growth of Multiplexes .8 to 4. attendance levels by 150 %.5 to 4. and box office collections by 200 %.
The driver for this phenomenon is a combination of lack of quality entertainment options in non metro cities together with a growing consumer base and disposable income available for entertainment.400. However. The primary targets in this list include Pune. ft. This figure may vary as per the maintenance standards of various theaters and the revenue streams running parallel to it. overall returns are highly correlated to box office contribution.29 MULTIPLEX – a class apart Advantage More often than not. Typical built up area required per seat is around 30 sq. with its attractive tax sops for multiplex development and operation is likely to get a lion's share of these projects. a recent trend in multiplex operations has witnessed the proliferation of multiplexes Into non metro urban centers of the country. Maharashtra. . multiplexes earn lot more from other revenue sources as compared to box office collections. Multiplexes in Mumbai Metropolitan Region (MMR) will get a 100 percent exemption for four years while in the rest of Maharashtra the exemption period will be five years. power at the industrial rate for five years etc. These projects will be entitled to a number of facilities including stamp duty relief (if located outside the municipal limits). However. and average no. Most multiplex projects break even at an occupancy rate of 40-45%. of seats per screen is around 250 . Indore. due to the role of "pull" creator that the movies play in this scenario. Baroda. Real estate is the major cost component and a strategic resource for the multiplex business. Although much smaller than traditional theatres in a screen to screen analysis. Ahmedabad and Jaipur. multiplexes often command higher collections and space efficiencies due to the following reasons: The element of choice of movies available to the consumer Premium pricing possible due to the total entertainment platform Multiple revenue streams hedge the risks associated with movie performance Most of the initial multiplex projects started in the major metros due to the availability of larger catchment areas.
with a view to commemorate birth centenary of Chitrapati late V. Public at large. these days. (d) To preserve and promote Marathi cinema. (b) The Government of Maharashtra therefore considers it necessary to encourage. these complexes are highly capital intensive. These Multiplex Theatre Complexes offer various entertainment facilities for the entire family under single roof. exclusively for Marathi movies. their gestation period is also quite longer. Keeping in view this scenario. and therefore need Government support and incentive in entertainment duty. However. it is obligatory for such complexes to reserve one screen for one month in one year. prefers seeing movies at home. . the average occupancy in cinema theatre has fallen considerably and hardly any new theatres started in recent past. Shantaram decided to grant concession in entertainment duty to Multiplex Theatre Complexes to promote construction of new cinema houses in the State. therefore. by giving incentives for the construction of new cinema theatres and to ensure the healthy cultural development in the State of Maharashtra. a concept of complete family Entertainment Center more popularly know as ‘Multiplex Theatre Complex’ has emerged. (c) Government has.30 MULTIPLEX – a class apart THE MAHARASHTRA STATE LAW THE STATEMENT The salient highlights of the Statement are: (a) Due to the onslaught of cable television and advancement in the field of information technology.
(g) Provision is also made for the existing theatres to convert into Multiplex Theatre Complex and to avail of the concessions. . subject to compliance with the specified conditions and requirement for setting up of a Complex. Family Entertainment Center. Art Gallery. which are to be provided by the Proprietor in a Complex and the Proprietor is not to discontinue any of such facilities without the prior permission of Government. the facilities and conditions including multi entertainment activities such as providing one theatre for Stage Performance.. (f) Power is also taken to withdraw the concession in case of violation of the conditions subject to which the concession is granted.31 MULTIPLEX – a class apart (e) Power is taken to specify by notification. etc.
(i) within the limits of Municipal Corporation of Greater Mumbai not less that four theatres in a complex with minimum total seating capacity of 1250 and (ii) anywhere else in the State. at the rate of twenty five percent of the rate of duty. no duty (ii) for the subsequent two years. There shall be levied and collected by the State Government from the proprietor of a Multiplex Theatre Complex the duty in respect of any such complex as follows namely (i) for the first three years from the date of commencement of the Multiplex Theatre Complex. body corporate or a company registered under the Companies Act 1956. (iii) from the sixth year full amount of duty leviable at the rate specified. multi-entertainment activities and other facilities as specified by Government by notification in the Official Gazette. Multiplex Theatre Complex means an entertainment-cum-cultural center which provides. responsible for or for the time being charge of.32 MULTIPLEX – a class apart THE POLICY The extracts are from the English translation of the Bombay Entertainments Duty (Amendment) Ordinance. 2001 It applies to any person partnership firm. the management of any Multiplex Theatre Complex. . It is an Ordinance to further amend the Bombay Entertainments Duty Act 1923 and was notified on August 18. not less that three theatres in a complex with minimum total seating capacity of 1000 and such other incidental and connected matters. published under the authority of the Governor of Maharashtra. facilities. 2001 (Maharashtra Ordinance XXIV of 2001).
till the period of concession is over. (ii) the change in the management of Multiplex Theatre Complex or the change in the name of the complex shall not be constructed as a fresh commencement of the Multiplex Theatre Complex. The concession in duty shall be available to the proprietor of the Multiplex Theatre Complex subject to following terms and conditions. in any of the cinema theatres in the Districts in which the Complex is situated. (i) the proprietor shall not charge less payment for admission than the prevailing highest rate for admission than the prevailing highest rate for admission at any given time. After the concession period is over. the proprietor may levy service charges as specified (iv) the Multiplex Theatre Complex shall be operating continuously for ten years (v) no facilities provided in the complex as specified in the notification shall be discontinued or curtailed. the concession shall be liable to be withdrawn and the duty shall be levied and collected form the date of commencement of the Multiplex Theatre Complex.33 MULTIPLEX – a class apart For the purpose of the above (i) the date on which the Multiplex Theatre Complex is opened to the public for admission shall be deemed to be the date of commencement of the Multiplex Theatre Complex. without prior permission of the Government In case of violation of the above conditions. at the rate specified along with the interest leviable at the . in a year. exclusively for Marathi movies (iii) the proprietor of a complex shall not levy the service charge (presently rupee one per admission ticket) till the period of concession is over. (ii) one theatre in the complex shall be reserved for a total period of not less that one month.
MULTIPLEX – a class apart If an existing Cinema Theatre is converted into a Multiplex Theatre Complex by not reducing its original seating capacity and by complying with the above provisions. (d) one of the theatres compatible for stage performances (e) an art gallery with a minimum area of 500 square feet with facilities such as display panels. The Government of Maharashtra specifies the following conditions which shall be complied with and other facilities including multi-entertainments activities which shall be provide by.76/T-1. THE NOTIFICATION Extracts from Notification no. the converted theatres shall be also entitled to concession in the duty as specified. the proprietor of a Multiplex Theatre Complex.R.34 rate specified. in such a complex: The complex shall have: (a) state-of-the-art sound system like Dolby-DTS/Dolby-Digital. (f) an exhibition center with a minimum area of 500 square feet with facilities for . projection system like xenon light and illumination system (b) be centrally air-conditioned (c) comfortable seating arrangement with minimum width of every seat from center to center twenty-one inches. ENT/1099/C. stands. counters etc.
(a) commercial complex (b) health center/health club (c) small apartment hotel The state has over 230 applications for exemption of entertainment taxes. exhibition center can be a designated part of the foyer or waiting lounge and the family entertainment center can be designated part of the foyer area or such other centers which may be prescribed by general or special order issued in this behalf by Government (h) a restaurant (i) adequate parking facility. with a minimum area of 500 square feet. Gujarat and Rajasthan. traditional garments. followed by West Bengal. prize redeeming machines (not amounting to gambling) virtual reality games. handicrafts etc. HUDCO too has plans to use prime areas in major cities belonging to the Department of Post (DoP) for multiplexes. cyber café The art gallery. which must be completed within two years of the application being approved. slot machines. computer games or any other gadgets which can be installed for entertainment etc. as may be specified by general or special order by Government The complex may also provide any of the following facilities. . and (j) such other facilities. The requirements are at least three theatres with a minimum of 1000 seats. pool parlour (containing minimum 2 tables). bowling alley. Maharashtra has the most attractive policy for multiplexes.35 MULTIPLEX – a class apart exhibition of works of arts. (g) a family entertainment center such as video game parlour having electronic games.
Stand. . Like Xenon Light And Latest Light Arrangement Etc 2) 3) 4) 5) It Should Be Centrally Air-Conditioned There Should Be Comfortable Seating Arrangement One Of The Theatre Should Be Suitable For Drama Stage Performances. Price Displaying Machine Not Gambling Machine. pool parlors (minimum 2 tables. Art Gallery Should Be Minimum 500 Sq Ft Area With Amenities Like Exhibition Board. Light Arrangement. Computer Game Minimum 3 Machines) or 7) Play house having minimum area of 500 sq ft for entertainment having video playroom bowling alley. Realistic Game. cyber café etc) 8) Art gallery. 9) Also the foyer of entertainment center for family or resting shall be specifically treated as part of the same.36 MULTIPLEX – a class apart Necessities for the appellation of Multiplex 1) Set Up Multiplex Should Be With Latest Sound System Like Dolbydts/Dolby Digital Latest Exhibition Machinery. exhibition center or rest room for relaxing should be specifically treated as part of the same. There should be other such centers as prescribed video journals or special orders from time to time by govt. 6) Exhibition Center Should Be With 500 Sq Ft Wherein Entertainment Programme Or Family Entertainment Center (Wherein Electronics Games. Slot Machinery. Windows Etc.
Inox Leisure is setting up 8 multiplexes including 4 in Mumbai. Overall there are plans for over a hundred such multiplexes coming up all over the country in the next 18 months. Other groups include Ad labs. with its flagship at Nariman Point. including 20th Century Fox. which has 10-12 complexes on the anvil over 5 years and the Essel Group. In the next 5 years. Runwal.The multiplexes are operated primarily by major Experience' at Hyderabad 'Prasad . Sringar Films.37 MULTIPLEX – a class apart Upcoming multiplexes in the country Multiplexes are not a new concept in India. PVR Group has planned a massive 8-screen complex in Phoenix Mill compound in Central Mumbai. Major movie production houses and media companies. Paramount. But the US had set up movie complexes in the suburbs about twenty years back and this concept is now spreading all over the world. covering 1 lakh sq. while complex over three had Mumbai Shivam/Satyam/Sundaram complex for the same period of time. . United Artists. Chennai (then Madras) had the Devi complex and Diamond/Sapphire/Emerald decades ago. opening in June 2003. operate multiplexes all over the world. Companies include Pentamedia. PVR Group and Inox Leisure. Columbia-Tri-Star/Sony and Warner Brothers. ft. Pune could well become the city of multiplexes with 41 applications submitted for clearances of the same in the next five years. The multiplex will include entertainment facilities and a shopping mall. Besides this 'Prasad .The upcoming integrated family entertainment center has five multiple theaters with IMAX technology in movies. which plans 12 multiplexes cum entertainment centers over 10 cities.
as well as candy. Wall-to-wall. ergonomically designed seats have been installed to provide flexibility and ultimate comfort to guests. floor-to-ceiling curved screens and digital sound will contribute in creating the ultimate movie going experience. located in the popular Ansal Crown Plaza. the stadium seating arrangement ensures unobstructed viewing from anywhere in the auditorium. hotdogs and soft drinks. The new multiplex located in a mall offers its patrons a variety of entertainment options under one roof. will feature a mix of both English and Hindi films. was launched with the screening of Shahrukh Khan and Sushmita Sen starrer "Main Hoon Na". pioneers in the movie exhibitions and entertainment business unveiled its latest state-of-the-art.Faridabad.38 MULTIPLEX – a class apart IN THE NEWS: PVR Faridabad Multiplex unveiled PVR). The multiplex has studio effect interiors and screens continuously projecting moviethemed images. fully digital PVR Cinemas . with a total seating capacity of 522 seats. . The two-screen multiplex. Equipped with the latest THX approved three way surround sound system with real life sound effects and state of the art projection facility with Xenon based technology (the latest in the world). Plush. Their latest offering in Faridabad is unique as always keeping in view its class and quality. The multiplex. Station concession counters will offer customers a wide selection of the traditional movie going fare of sweet and salted popcorn.
PVR Ltd . fruit juices and bottled water." said Ajjay Bijli.39 MULTIPLEX – a class apart nachos. Our endeavor is to provide the residents in and around this locality a complete entertainment complex. Faridabad was the obvious destination for us this time because we realized that there was an immediate need for a quality cinema hall in this area. Our drive to build and develop state-of-the-art multi-screen entertainment complexes in the capital has been a tremendous success thanks to the overwhelming response from the citizens here. Abundant parking space will be available at the multiplex. Managing Director.
250 seats. Adlabs will also convert the cinema complex. into a multiplex to take advantage of the Maharashtra governments entertainment tax waiver policy." said Mr. with a provision for further renewal. Sundaram will have 610 seats and Sachinam will have 395 seats. The management of the multiplex will be entirely with Adlabs. while profits will be shared on 50:50 ratio between Adlabs and Mr. There are five screens in Imax Adlabs in Wadala and another four screens in the ‘Fame Adlabs’ multiplex at Link Road in Mumbai. Adlabs’ agreement with cinema owner CD Shah. the proprietors have to run the multiplex for a minimum of 10 years. "High end audio equipment. which has been under negotiation for over three months. Shivam and Satyam will have 160 seats. However. And a 75% waiver for the next two years. Adlabs will establish a chain of multiplexes in Mumbai. Shah.300 to fit the ‘multiplex’ requirement of 1. shut since November 2001. The Worli multiplex will be re-named ‘SatyamAdlabs’. located in Mumbai’s up market Worli area. increasing the number of seats to 1. Xenon projectors and the carving out of a restaurant. The 27 year old cinema property fell into disuse and its revival has proved to be Herculean task as its proprietor Mr. The agreement has been drawn up for 10 years. Shah has been embroiled in financial complications . Conversion to a multiplex in Maharashtra gives the proprietors the benefit of a threeyear entertainment tax holiday. With the Worli multiplex. The renovation will involve. shopping mall will be other introductions. video games parlor and an art gallery.40 MULTIPLEX – a class apart Adlabs to develop Satyam theatres in Central Mumbai into multiplex Theatre management is new expansion mantra Adlabs has struck a profit sharing deal to take over the management of the prime cinema property ‘Satyam Shivam Sundaram’. involves investment worth Rs5 crore in refurbishment and conversion of the three-theatre complex into a four-screen multiplex. Shetty promoter of Adlabs. The larger ‘Satyam’ will be broken up into two screens.
Three of the multiplexes with the latest technology are going to open here very shortly.41 MULTIPLEX – a class apart Pentcity’s Rs. "Under the first phase of Jollywood Film City Development. on the pattern of drive-in cinemas in Ahmedabad facilitating film viewing while sitting in car. about a dozen small and big sets besides a vast and artistic gorgeous set are to be taken up. film shooting will start here within seven to eight months". a five star hotel. Once the multiplexes start functioning in Jaipur. . 200 crores is being finalized. Jollywood is being developed at village Gangana. film studio. 150 crores. a plot of land will be soon auctioned on Tonk Road beyond Bambala Drain in Sukhpuria region for setting up a modern drive-in cinema. Under the second phase of development. 12 kms away from Jodhpur on a plot measuring 150 acres costing Rs. Jaipur: Three multiplexes & drive-in cinemas It may be added that the future of cinema in Jaipur looks bright. television and music. attractive swimming pool and roads have been completed. Jaipur and Udaipur will cost Rs. The entire complex including drive-in cinemas at Jodhpur. 1000 crores in all. Accordingly. The entire project will be completed within the next two-three years. The project-in charge Kiran Shah of Pentcity.200 crore multiplex in Jodhpur!! On the pattern of Film City in Mumbai. But. The plan of construction of multiplex. said. the first of its kind in Jaipur. an office complex. going to cinema will gather momentum Jaipur Development Authority (JDA) has decided to allot land for drive-in cinemas in areas marked for entertainment category for the purpose in the master plan of Jaipur. theatre complex and shopping paradise in Jodhpur at a cost of Rs. leading company in the field of films.
The choice of location of an E-Citi center will depend on the demography of the area. "The family entertainment centers. will be up and running in major towns across India by 2003. Chandigarh. at an estimated cost of Rs 450 crore. Kolkata and Baroda. Jaipur. its economic conditions and the preferences and demands of the population in the area. Lucknow. The company has already undertaken construction at Andheri and Chembur in Mumbai. Goel said the company was expected to break even two years after all units became operational. The first of the 14 multiplexes. Pune. . The company has borrowed Rs 80 crore from some leading banks like HDFC Bank. Goel said the company has invested about Rs 110 crore in the Ahmedabad multiplex and is acquiring land in other cities. Hyderabad.42 MULTIPLEX – a class apart E-City to invest Rs. The proposed multiplex will have four movie screens. chief officer for business development at E-City Entertainment. E-City Entertainment’s next multiplex will open in Mumbai this year and will be followed by Delhi. For Delhi. Bangalore. will invest Rs 450 crore in setting up 14 entertainment centers across India. 450cr in multiplexes Media baron Subhash Chandra to focus on multiplexes E-CITY Entertainment. the company has drawn up plans to invest in Raja Garden area and the land has already been acquired. part of the Essel Group that promotes Zee Telefilms. book and music stores. and the company is in the process of acquiring land and civil work for the other projects. Chennai. games alleys and restaurants." said Atul Goel. The Ahmedabad multiplex houses half a dozen cinema halls. named "Fun Republic". department stores. is already operational in Ahmedabad.
Originally. ropeways and convention centers. an amendment to the law ensured that the concessions were available to multiplexes inside city limits too. motels. while the conventional cinema houses are gradually going out of business under pressure of competition and nearly 51 per cent taxes. But if one goes to watch the same film in a multiplex theatre at four times the usual ticket rate. Though the tax holiday for multiplexes was available for projects set up only in areas outside the city. electricity duty. it is taxable entertainment. . while conventional cinema halls with ticket rates of Rs 30 or Rs 40 pay out almost 51 per cent as taxes. The Gujarat Government’s tourism policy exempts the multiplexes — cinema halls with multiple screens showing different films — from sales tax. then it becomes ‘promotion of tourism’ and need not be taxed. the Tourism Policy 1995-2000 had given a tax holiday for tourism units which included 22 types of projects like multiplexes. heritage hotels.43 MULTIPLEX – a class apart Theatre owners countrywide against Multiplex incentives If one watches a film in an old cinema hall. As a result. turn over tax. Or so believes the Gujarat Government. the concept of multiplex theatres had been catching up in Gujarat even as cinema halls have been complaining about bad complaining about bad business due to competition from video parlours and cable television. amusement parks. the multiplexes have caught the imagination of the urban elite. the multiplexes with ticket rates of Rs 100 do not have to pay a penny as taxes simply because these have been included in the ‘tourism projects’. During the last three years. health farms. luxury tax and also entertainment tax. which has exempted the state’s multiplex theatres from all sorts of taxes. With the state’s upwardly mobile middle class willing to spend lavishly on any new concept. hotels.
A ticket cost is anywhere between Rs. crowd or comfort but it is expensive. Going to a movie in a multiplex is nice whether in terms of sophisticated facilities. The rates are still steep even after the reduction in the entertainment tax from 60 per cent to 30 per cent.1000.44 MULTIPLEX – a class apart Major disadvantage of a multiplex Major problem faced by multiplexes is ticket pricing.150. . Movie for a family of four could cost around Rs.110 Rs.A person who goes to a multiplex pays around two to three times more money that what he gives in a normal cinema shall be it the ticket or food.600 and with food it becomes Rs.
for the setting up of an IMAX Dome Theatre in . There are about 110 to 160 Hindi films released in a year. The company has processed films for almost all production companies in Mumbai. initially catered to only the ad film market. Ad labs Films. 2001. 30 to 40 are from major production houses and another 30 to 40 belong to the middle range group. The company has a major chunk of this work. one of India’s leading motion picture processing laboratories. The company launched the first multiplex with four theaters in the same premises as the IMAX Adlabs theatre on October 24.71 crore). Multiplexes have been built at the cost of Rs 13 crore (originally budgeted Rs 9. It has a 70 per cent market share in the 35 mm negative film processing and 60 per cent market share in the 35 mm colour processing in the western region. Of this. Processing documentaries and short films then became a part of Ad lab`s growing business. The companies setup the first Imax dome theatre with screen size of 12.700 sq. Adlabs Films Ltd.ft.45 MULTIPLEX – a class apart Multiplex – IMAX A Case Study Business Profile Adlabs is a leading motion picture processing laboratory which started in 1978. 2001. Founded by Manmohan Shetty and Vasanji Mamania. The company went public in December 2000 with an IPO of Rs 53 crore. had recently signed an agreement with IMAX Corporation .3 crore) of this was used to build the IMAX Dome Theatre in Mumbai.accompanied by 12.Canada. The theatre was open for public screening on 31st March.000 watts of astounding wrapsound. originally budgeted Rs 29. The largest portion (Rs 39 crore.
the 15/70 images IMAX screen is 10 times larger than a conventional 35mm frame and five times bigger than a standard 70mm frame. IMAX currently has received business queries from Ahmedabad and Hyderabad. Worldwide.46 MULTIPLEX – a class apart Mumbai. Each IMAX movie. the IMAX screen is specially made for "acoustical transparency". with sub-bass. Prakash Jha. 52 crores with the 520-seater IMAX dome alone accounting for Rs. The 520-seater IMAX Dome Theatre. Almost eight-storey high. Sound is the other critical element of the IMAX Experience! The multiplex project. comprising the IMAX dome and four regular theatres. This allows all the members of the audience to experience superb sound quality regardless of where they are seated. eliminates variation in volume and sound quality over the theatres seating area. in the presence of several film personalities including Sunil Dutt. Ramesh Sippy. is to be part of a four-cinema multiplex and is scheduled to open its doors for Mumbai’s movie going public. there are 237 IMAX theatres in 25 countries with another 36 in 15 nations due for addition this year Chief Minister Vilasrao Deshmukh and Deputy Chief Minister Chhagan Bhujbal inaugurated the IMAX theatre. Govind Nihalani. is the largest IMAX dome in the world and the first of its kind in the Indian subcontinent In India. the latter for a flat screen facility. The IMAX six channel. Films for screening on this huge screen (typically of 4550 minutes duration) are specially shot with dedicated equipment and on celluloid having the largest frame size. and Ad labs. the IMAX Dome. and Vidhu Vinod Chopra among others. Govind Swarup.IMAX Ad labs celebrated its first . Manmohan Shetty. which is 30 meters wide in diameter. Managing Director. Constructed of a special diffused matte white vinyl perforated with thousands of tiny holes. totally costs Rs. Kiran Shantaram. On March 31. high-fidelity motion picture sound system . Incidentally. 39 crores. one stretch of shooting cannot exceed three minutes and a finished film can weigh 250 pounds) costs $5-6 millions. Subhash Ghai. 2002. Mr. given the logistics involved (cameras are big. which is located in Wadala in Mumbai.
IMAX Ad labs has brought to Mumbai City. Chairman & Managing Director Ad labs Films Ltd and Dreamer Extraordinaire has shown this city that the competency of vision can turn a company into a landmark.47 MULTIPLEX – a class apart anniversary . many activities. Mr. The destination was conceived under the vision of Manmohan Shetty as a leap forward in the progression of India’s already well-established entertainment industry. And. Pooja Shetty. both for the city and itself. whose business acumen and operational skills has resulted in creating a special space for “image maximum” in Mumbai. Ad lab Films. The IMAX Ad labs multiplex is also the only one in the city with special facilities for the disabled and handicapped allowing this community too the ability to enjoy the spectacular fare of a film in ‘Image Maximum’ format. Manmohan Shetty. In the span of just one-year. events and causes of joy allowing into its fold more than half a million people from Mumbai and across the country. Let that be reason to celebrate! . has been ably managed by Director.The Multiplex – the first in Mumbai boasting the Worlds largest and India’s only dome theatre for IMAX viewing has grown to become an integral part of the city landscape and its citizen’s life. The past year and all its activity have again proved the adage that he who dares to dream wins.
Shetty talked about latest trends in the industry and the company’s key growth factors.( November 21. which is difficult to control. 2003) What are the key growth drivers for the company? What kind of growth company is likely to witness over the next 2 years? Multiplexes and film production will be the key growth drivers for the company. Our processing business is unaffected by fate of the film at the box office.000 and so the economics of making prints for the B and C class theatres – where the tickets cost Rs20 to 25 – does not work out. Lets say we make 250-350 original prints and 450-500 digital copies for a film.48 MULTIPLEX – a class apart LEADER SPEAK In an interview with R Venkataraman and Nishant Jadav of India Infoline. How does piracy take place in this business? Every consumer has what is called the "first day first show" syndrome where he wants to watch a new film within days of its release. Theatres in small and mid towns do not get the prints within the first week of the film’s release but manage to get the pirated versions within days of the film’s release. the reality is that we have 12. However. Mr. . Thus the scope for piracy is reduced. which generates almost 40-45% of total revenue of the company will continue to show a growth at historic levels.000 theatres all over India and only 250-350 original prints are released per film (number varies based on market expectations of a film’s success). Piracy in films has hampered the revenues of most companies in the industry. This is because the cost of making a print is approximately Rs55. Does digitalization help to curb piracy? Digitalization is an alternate and cost effective method of making prints by which we can release a film all over the county on the same day. The digital copy of the film reaches the B and C class theaters on the day the film is released throughout the country. consumers all over India know when a film is going to be released. With mass promotions of films through television and print. It takes 2-3 months for prints to reach B and C class theatres from A class theatres in metropolitan cities. They manage to do this because of leakage in the system. Film processing.
the pay back period is approximately 1. by the theatre owner. Currently. Going forward. Tell us more about it. However. We intend to have a contract with all cinemas for 5 years out of which. which is far below the required 40%.49 MULTIPLEX – a class apart You are one of the pioneers in this field. etc. We undertake film production and financing through Entertainment One India Ltd. is not favorable. The company would be investing around Rs180-200mn per annum across four to five films. IMAX Dome theatre has. So far 42 theatres have already been digitalized and we plan to add 100 theatres more to the list. Can you tell us more about your plans for digitalization of theaters in India? We have already invested in the technology required for digitalization of theaters. we experience almost 100% capacity utilization. How has been the performance of your multiplexes? The multiplexes have gained momentum and average occupancy has increased. we are showing ‘Matrix Revolutions’ at the Dome. Limited variety of content is a strong negative and we are trying to overcome it. We have not made it a part of Adlabs business model since most of our clients are in film production and also because film production is a risky business. We have entered into a 50-50 joint venture with Mukta Arts Limited starting September 1. much like in the western countries. by a bank. Entertainment One India Ltd is your company’s 100% subsidiary. the concept of multiplexes will pick up and occupancy will be highest during weekends. which is borne either by us. financed mainly by accruals from existing multiplexes. we have limited our capex plan to setting up 2 multiplexes a year. We are operating at occupancy rates of 28-32%. however. considering the high capital expenditure. or on a partial basis by the parties involved.2003 to help us achieve this target. success of films. 2 in Delhi and a few more in Chandigarh. and it has faired well in its first week. Which other cities apart from Mumbai are you looking at for setting up new multiplexes? We are planning of setting up 1 multiplex in Pune. We usually have a revenue sharing agreement with the theaters. Jalandhar. The vast experience of Mukta Arts in distribution and strong presence in certain regions will be an asset to the venture.5 to 2 years depending on the territory. The risk to return ratio. Some of the films . What is the revenue model and pay back period for digitalization of theatres? The initial investment of setting the server and projector is around Rs1mn. not performed up to the mark. Especially on weekends. etc.
debt or equity. Can you tell us more about it? We intend raising funds in the company from all sources. We are recruiting the management team how will make a detailed plan for the same. We had an expectation to start by end of December this year but that will be pushed to April next year. We have not finalized anything with Sahara yet and thus nothing is on paper as of now. ‘Main Madhuri Dixit Banna Chahati Hu’. Thus the company has always tried to live up to the expectations of its shareholders and shall strive to do that in the future also. What kind of competition do you have in film processing? There is stiff competition to the company in the processing business mainly from players based in Hyderabad and Chennai. What about your plans to enter television business? We are working out the possibilities of entering content production for television. We still have to workout the resources and the team who will be responsible for it. Last year we saw a turnover of Rs780mn and this year we expect to touch the Rs1bn mark. .MULTIPLEX – a class apart under its banner are ‘Gangajaal’. 50 There are rumors in the market about Sahara Media taking a stake in Entertainment One India Ltd. ‘Intehaa’ and a forth-coming film ‘Munna Bhai MBBS’ We have also part financed Aamir Khan starrer ‘1857 Rising Sun’ to the extent of Rs120mn. Your message to shareholders When Adlabs went public its turnover was close to Rs360mn. for expansion and growth purposes.
5 crores Distribution Share – 40 to 60 % goes to the distributor for their share for multiplex Dome – 18 – 20 % share of the net collection – to the distributors of Canada interest rate varied from 8 – 10 % Other incomes received by IMAX 1) Retail stores.5% on rate able value 4) Resale tax—0.35 % on net profit levied on the company . Advertising – They collect approximate of Rs 2500 – 3000 per day 2) They even have location hire charges i.e.51 MULTIPLEX – a class apart Facts and Figures of IMAX Sources of Income to Broach the IMAX 1) 2) 3) 4) They had taken loans from Bank of Baroda amounting to Rs 37 crores – at that time the They also issues the IPO and collected Rs 12. Displays. shooting charges Various Taxes levied by the Government on the IMAX 1) Show tax—Rs 20 per show. which goes to film division 2) 1% INR—Indian news reel 3) Property tax –112.5 % on café sales and art gallery (paintings) 5) Income/corporate tax--.
52 MULTIPLEX – a class apart 6) Dividend tax—12.5% is levied on the amount of dividend declared by the company 7) Service Tax and Sales Tax not applicable .
53 MULTIPLEX – a class apart In the news: Multiplexes gag business for Kolkata cinema halls The growth of multiplex culture here is throwing traditional cinema halls out of business as they fail to match the facilities and gloss of the modern entertainment hubs." says Amit Jajodia. The city has three multiplexes that match up to the best in the country. Many more are struggling to stay afloat." says Sanjay Sahu. bookstores and music stalls with jukeboxes. For instance. Kolkatans are increasingly crowding multiplexes to catch the latest movie only because these entertainment zones offer more things than the traditional cinema halls. A few more are coming up. a 23-year-old student of management. these multiplexes are equipped with coffee shops." says Jajodia. Besides having at least four auditoriums. But only atmosphere and the mood wouldn't do. The unmatched competition has so far resulted in at least 18 city cinema halls closing down. "Given a choice we would watch a movie at a multiplex because they are a better hangout and the entertainment options are more.say the atmosphere of the place where they hang out is very important. a young computer professional. Regulars at multiplexes . shopping malls.mostly youngsters . . "The mood's got to be cool and casual for the place to run. the acoustics are of the highest grade. video game parlours. "The facilities at multiplexes are far superior. There has to be money's worth as well.
the traditional cinema halls pale into insignificance with their betel juicestained walls. crammed auditoriums." says EIMPA president Arijit Dutta. bigger seats and more leg space that ensures "equal viewing pleasure" from any part of the auditorium. Cinema halls should have been packed as brands. Some others let out their space for holding of exhibitions of cheap items of daily use or garments. Many cinema hall owners admit that they had taken spectators for granted and didn't bother about their facilities. "Most halls haven't changed with times. In at least one city hall .54 MULTIPLEX – a class apart While most cinema halls have crackling sound systems or a rudimentary Dolby technology. these multiplexes use Dolby X Processor with 6. Cinema halls that are going out of business are turning into auditoriums available on hire for occasions such as marriage parties.which survives by screening B-grade movies and skin flicks spectators have to sit with their legs on their seats in the rainy season because water from a nearby canal floods its floor. distributors and cinema hall owners. who is among a few cinema hall owners who have managed to adapt with the changing times. The seating facilities are also special with moveable armrests. In comparison. The Eastern India Motion Pictures Association (EIMPA). creaking seats and defective air-conditioning systems.1 channels for depth and the 3D effect and electro-voice processors for the speakers. admits their folly. a body of film producers. . Those who have done that are fighting it out with the multiplexes. Some complain that running the business had become difficult because of rising establishment costs and labour trouble.
film studios and Hindi film production business under a new company: Videocon Entertainment. "This is a new area and a different line of business. depending upon the partner’s strength. Bombay and Ahmedabad. Singapore The Dhoots-controlled Videocon group has decided to rope in a strategic partner for its entertainment business. the theme parks. "But. Anirudh Dhoot. "We will be divesting stake in favour of a strategic partner in our entertainment business. multiplexes and film production will be divisions of Videocon Entertainment. Dhoot said. while the balance will be held by the partner. . The group is also in talks with Singapore-listed Warner Village for a strategic alliance to set up family entertainment centers and multiplexes." According to Dhoot. however. Also we wanted to try our hand at it.55 MULTIPLEX – a class apart Videocon Entertainment jumps on Multiplex bandwagon Strategic alliance with Warner Village. Dhoot said. we will then hive off the divisions into separate companies and rope in different companies/partners for the divisions. On the cards is multiplex theatres which will be set up in Thane." Dhoot said. Dhoot said. The Videocon group will be holding 51 per cent." Videocon had bought the consumer electronics factory at Salt Lake from Philips India. manager (marketing and sales). The group may also explore the possibility of converting its plant premises into multiplex theatres." Explaining the rationale behind the Rs 40 billion group’s foray into entertainment. which will house eight screens for movies. hold a majority stake of 51 per cent. focus and interest. since we are negotiating with a lot of companies for a possible joint venture. The group will house its entertainment multiplexes. "It all depends on the location such as the Salt Lake in Calcutta which is a prominent location. The group will. Videocon International and also head of the entertain ment business said.
It is negotiating with production companies such as Boney Kapoor Productions. the company is negotiating with Universal Studios as it is interested in investing in the venture. Pritish Nandy Communications and K C Bokadia Productions to produce their forthcoming movies. For international studio facilities. Videocon will produce two-three movies each year.56 MULTIPLEX – a class apart Universal Studios tie-up? In the case of film production. .
but in the smaller cities and district centers. for instance. barely a stone’s throw away. has been developed at an approximate cost of Rs 16 crore. Adlabs. says the group is looking at setting up . Citi Mall. Subhash Chandra’s ECiti entertainment mall. Amravati. Adlabs on its own has also put up a four-screen multiplex in addition to its Imax dome theatre at Wadala at a total cost of Rs 12 crore. Shroff Multiplexes can bring Rs. 500-cr investments in Maharashtra Among the new multiplexes which have become operational is the one promoted jointly by Shringar Films and Adlabs’ Manmohan Shetty and Vassanji Mamania coming up as part of the Ajmeras’.000 square feet multiplex. In Mumbai. Kolhapur. Another big project in the western suburbs is being developed by the C L Raheja group at Goregaon-Malad where an eight-screen complex costing around Rs 30 crore will be leased to the K K Modi-Lalit Modi group. on account of the high cost of land.gabad and Nashik.57 MULTIPLEX – a class apart Mumbai’s Multiplexes: ECiti. will also soon see a five-screen multiplex. a group of developers who are constructing a 3 lakh square feet mall in Mulund on a property that once belonged to New India Industries. Beyond Mumbai. in Mumbai’s northwestern suburbs. investment can be scaled down to around Rs 13 crore for a similar multiplex. manufacturers of the well-known Agfa photo film brand. The five-screen 30. Shravan Shroff. Modi. Mumbai alone is expected to see at least 50 additional multiplex screens over the next year.developed Citi Mall Plaza in Oshiwara. a promoter of Shringar Films. Pune. Close on the heels of Citi Mall multiplex. Meanwhile. The latter have large interests in the entertainment industry. an average five-screen multiplex costs Rs 20 crore. will put up a four-screen complex in the Nariman Point shopping center The company has also leased space for a four-screen multiplex from the Runwalls. a number of developers are looking at putting up multiplexes in Nagpur. The Inox group. promoted by Shishir Baijal. Auran. INOX.
There are 13." observed Shroff. The state governments of Gujarat. China: 67. tickets are always hard to get. As against this China. state of the art technology. multiple screen choices.5% of the ticket revenue. Added to that there has been a relaxation in the import duties of film equipment in the last budget. which ranks first in terms of number of screens in the Asia Pacific region. The entertainment taxes in India range anywhere between 50120% varying across different States. eye-catching architecture and top of the line additional recreation facilities like cafes. Rajasthan and Uttar Pradesh have passed resolutions exempting multiplexes from entertainment taxes for next 5-7 years. have around 67.58 MULTIPLEX – a class apart three or four more multiplexes outside Mumbai in Nashik and Kolhapur. Whenever there is a good movie in town. till recently. The prevailing rate of entertainment tax in Maharastra is 37.000 screens. the second largest in the Asia pacific region. which has also led to acceleration in multiplex projects coming up in the country. promoted by Prakash Chappalkar.000! Taxes and growth potential interlinked The multiplex concept is fast catching up in India. Pune’s first "There is obvious shortage of cinema seats. Multiplex embodies the luxurious amenities of the modern day theatre. that is insufficient to meet the entertainment needs of the country’s population who can afford watching a movie at least once in every three months. High entertainment taxes in India have. adversely affected the economics of running a movie theatre and hence a major disincentive for expansion of theatre capacity in the country.000 movie theaters in India. shopping malls and food courts. The entertainment tax concession for multiplexes given by the Maharashtra government is expected to spur fresh investments worth Rs 5 bn in the sector . However.000 screens on last count. India 13. is already operational. multiplex ‘City Pride’. gyms. Last year itself around 40 multiplexes were built in India and more than 600 are in the pipeline. ergonomic seating.
Explains Shroff. have now been completely discontinued from cineplexes. So pre-matinee (9. Bandra’s G-7 continues with its pre-noon shows priced at Rs 35 — a common grouse among its competitors. their ticket rates cannot be lower than Rs 100. 2004 In a strange anomaly. which were earlier priced at Rs 60. adding an estimated 200 screens and an additional 50. as against in the neighbourhood. The rationale is to protect single screen cinemas. “For instance a multiplex in Bhandup is expected to charge more than .59 MULTIPLEX – a class apart over the next two years. And the existing rule is that multiplex admission fees have to be more than the highest priced ticket of any single screen theatre within a district. multiplex owners want to charge less. while all Mumbai multiplexes (for example Andheri’s Fun Republic and Wadala’s Imax Adlabs) have stopped early screenings due to commercial reasons. Multiplex matinee ends By: Mayank Shekhar August 17. Complains Fame Adlab’s Shravan Shroff. “Unless we keep rates low. ” However. who will watch shows so early in the morning? The moderate prices for morning screenings were also to encourage collegians to watch films. but the government wants them to keep their ticket rates hiked up. According to a recent government notice issued to multiplex owners.30/10 am) shows.000 cinema theatres. Another grouse of multiplex owners is that its pricing policy is set vis-à-vis ticket rates of cinemas in the entire district.
which doesn’t make sense.” Shroff also claims that the Maharashtra law is not implemented in any city beside Mumbai. he says. was unavailable for comment. comes from the patrons being used to low prices for years: “If we had suddenly hiked our fares.60 MULTIPLEX – a class apart the highest priced ticket at Sterling (Colaba).” G-7 recently converted to a multiplex. despite repeated attempts. executive director. G-7 in Bandra (which includes Gaiety and Galaxy among seven screens) is unaffected by the dictum. G-7 unaffected While morning shows at all multiplexes in the city have been discontinued due to government stipulation to keep ticket rates high. we would have lost all our customers. G-7. The exception for Desai’s complex. “We had been issued with the same government order but appealed to the state chief minister who allowed us to keep the ticket rates low until further notice.” . The district collectorate. Says Manoj Desai. What this means for filmgoers though is that the only time you can catch a movie at a multiplex now is after noon.
adlabsmultiplex.famecinemas.61 MULTIPLEX – a class apart Bibliography: www.com http://web.com www.com www.indianmultiplex.com http://incometaxindia.fun-republic.com www.in http://www.com/ http://tradeniconline.domain-b.indiainfoline.com http://www.nic.in .gov.smallindustryindia.com www.inoxmovies.mid-day.com http://www.
62 MULTIPLEX – a class apart Magazines & Newspapers: Business World Business Today Times Of India Mid Day (website) MULTIPLEX – a class apart .
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