Business in India - Film Exhibition

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  • Topic: Film, Bollywood, Cinema of India
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  • Published : February 10, 2013
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Film Exhibition Industry
in India

Yarden Naor 066494790
Etay Levanon 040220923
Nir Lion 04090129

The IndusTry Today (ConT’d)
• "Films" contribute nearly 27% of the total
revenues of the entertainment industry.
• The Indian film industry is one of the most
complex and fragmented national film
industries in the world comprising of a
number of regional film industries like Hindi,
Tamil, Telugu, Kannada and others.

The IndusTry Today (ConT’d)
• Though India produces the largest number of
films in the world (Approximately 1000 per
year), it accounts for only 1% of the global film
industry revenues.
• In spite of being over 90 years old, the Indian
film industry was accorded the status of
industry only in 2000

The IndusTry Today (ConT’d)
• One of the characteristic of the India movie
industry is the stand alone screen cinemas.
• As of today, out of the 11,500 screens existing
in India, 10,167 screens are poor quality stand
alone screens.
• The single screen cinemas are poorly
maintained as the owners find it difficult to
upgrade and renovate their facilities,

The IndusTry Today (ConT’d)
• The deteriorating quality of these cinemas
dissuaded viewers and they started using
alternative viewing options
No.

Name of State/Union Territories

Cinemas

1

Andhra Pradesh

2809

2

Andaman & Nicobar

1

3

Arunachal Pradesh

1

4

Assam

82

5

Bihar

269

6

Chandigarh

6

7

Dadra & Nagar Haveli

2

8

Delhi/New Delhi

80

9

Goa, Daman & Diu

10

10

Gujarat

291

The Key Players
• PVR Cinemas - PVR is one of the leading
multiplex operators with very strong
performance on operational parameters.
• Inox Leisure - Inox has shown impressive
operational performance, delivering a
65%CAGR in topline in the past 5 years with
the highest EBITDA margins in the multiplex
space.

The Key Players (ConT’d)
• Fame India - Fame India is one of the smaller
multiplex operators among the listed Indian
exhibitors, with a current slate of 16
properties and 61 screens under operation.
• Adlabs Films - Adlabs is the only player at
present that has presence in all of the three
major segments in movies i.e. production,
distribution and exhibition.

The Key Players (ConT’d)
• Cinemax - Cinemax India (Cinemax) is one of
the smallest multiplex exhibitors within the
listed space with 56 screens across 19
properties, a majority of them concentrated in
the Mumbai territory.

Tax benefits
• All entities linked to the entertainment space are
required to pay entertainment tax, which is a state
subject.
• Entertainment tax in the past was as high as 100% of
the ticket revenues in some states, which made
exhibition projects unviable in many cases.
• However, many state governments appreciate and
understand the need to rationalize E-tax levels and
have provided for either entertainment-tax exemptions
for multiplex operators or reduction of e-tax to more
affordable levels.

Tax benefits

Where is the industry heading
to?
• Emergence of new sources of revenue - Although
revenues from the theater segment constitute
around 60% of the overall revenue generated for
a movie, other revenue streams have begun to
make a meaningful contribution.
• Collaboration with international studios:
International film studios such as Warner Bros.,
Disney, Fox and DreamWorks have entered
collaborations with local film production houses
to develop Hindi and regional movies.

Where is the industry heading
To? (ConT’d)
• Rise of 3D cinema: 3D was a prominent theme in
2010 and has amply demonstrated its significant
potential with benefits such as enhanced
audience engagement, increased ticket prices and
the exclusivity.
• Rationalizing the movie slate: In line with the
global trend, Indian movie production houses
have cut down on the number of movies they
release every year (less movies, higher revenue).

Where...
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