Multiplex Industry in India

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Consulting

Industry Overview
• • The Indian film industry is the largest film industry in the world in terms of the number of films produced and admissions each year. Revenue for 2004 was estimated at Rs. 59 billion (US$1.3 billion), which was less than 1% of global film industry revenue and a fraction of the U.S. Film industry revenue, which was US$9.49 billion in 2003. (Source CII )

Film Industry Revenues
12% 4% 57% 9% 2% 2% 14% Domestic Theatrical Leakages piracy In Cinema Ads Music Satellite / DTH / IPTV DVD / VCD / Overseas Cable Overseas Theatrical

Nearly 80% of Indian Industry revenues come from Domestic and Overseas Theatrical. On the contrary US Film Industry earns only 35% from box office sales and remaining 65% is derived from other revenue sources This clearly signifies the onset and potential of Multiplexes in the Indian Film Exhibition Sector.

Consulting

Consulting

The Film Exhibition Industry



The Indian film exhibition sector had revenues of Rs. 34 billion in 2004. (Source:CII) The Film Exhibition Industry can be divided into two segments: – –

single and double-screen cinemas and multiplex cinemas, i.e. three screens or more.



As of March 2005, there were approximately 12,000 cinemas in India of which 73 were multiplexes with a total of 276 screens. Multiplexes constitute only 0.6 % of about 12,000 cinema halls in India, but account for 28% to 34 % of the box office take for the Top 50 films in 2004. (Source Yes Bank)



Consulting

The Film Exhibition Industry: Multiplex
More than 60 additional multiplexes with more than 220 additional screens are slated to commence operations by the end of 2006, a growth rate of 80-100% Average price of a ticket for a multiplex cinema is Rs. 75 - 85 but the number of screens in multiplexes represented only 2.3% of total screens in India as of March 2005. (Source:Industry Estimates)

An increase in the number of Multiplex screens should result in an increase in film exhibition revenues, so the opening of new Multiplexes represents a significant growth opportunity for the industry. S c re e ns P e r M illio n P o pula tio n

140 120 100 80 60 40 20 0
India UK Belgium Ger many Spain Italy Ir eland Denmar k Fr ance USA

117

77 52 30 12 43 45 46 53 61

In India, the number of screens per million of population is just 12 whereas the average in western countries is 40. India needs 20,000 screens to cater the entire cinema viewing population

Consulting

The Film Exhibition Industry: Multiplex
No of Multiplex in Cities
16 12 8 4 0

12 6 5 4 4 3 3
Nasik

Multiplexs Across Regions as on March 2005 (source Yes Bank)

3
Pune

23

North South East

Delhi

Kolkata

Mumbai & Suburbs

Ahmedabad

Ghaziabad

Gurgaon

42 3

5

West

Geographic Distribution of Theatres Across India Ficci - E&Y Report 2004 Andhra Pradesh 24% 21%

Kerala Karnataka Maharashtra Uttar Pradesh Tamil Nadu Others

10% 19% 8% 9% 9%

Number of Screens 3 Screens 4 Screens 5 Screens 6 Screens More than 6 Screens

Number of Number of Number of Seats / Multiplexes Screens Seats Screens 40 120 43143 360 21 84 25862 308 6 30 10148 338 4 24 6991 291 2 18 3326 185 73 276 89470 1482

Majority of multiplexes have 3 screens. The table enlists the number of multiplexes sub-divided by the number of screens and seats.

Consulting

Consulting

Key players
Company PVR Cinemas * Inox Leisure Limited Adlabs Films * Shringar Cinemas Wave Cinemas E-City Cinemas Total % of India # of Properties # of Screens 7 34 5 25 4 14 3 14 3 13 3 14 25 114 34% 41% # of Seats 7333 7344 5666 4588 4380 3952 33263 37%

* Only film exhibitio n pro perties with 3 o r mo re s creens have been co ns idered fo r this analys is So urce: Bo llywo o d Emerging Trends & Gro wth Drivers - Yes Bank Repo rt 2005 Kindly note that the No of Properties , Screens and Seats have been updated in the subsequent slides * from respective Company Web Sites as...
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