PVR Case Study
Economics of multiplexes in India : A study of the PVR group(2009-11)
The revenue generation techniques of the cinema halls have been one of the least explored areas of the communication studies. This essay is an attempt to look at the revenue generation strategies of the PVR Group, specifically, two halls, PVR Plaza and PVR Rivoli, located at Connaught Place, New Delhi. The financial year 2008-09, that is in focus here for the purpose of study, was marked as a particularly slow year for the Indian film industry for various reasons.
PVR Plaza and PVR Rivoli, represent the era of multiplexes which started in India with the advent of Priya Village Roadshow, (popularly known as PVR), in the market of cinema exhibition in 1997. A joint venture of Priya Exhibitors Private Limited and Village Roadshow Limited, an Australia based cinema exhibition company, PVR is now one of many corporate players that dominate the market. Before 1997, the single screen halls owned by small businesses and sole proprietors were the only players in the market.
The primary source of revenue for any cinema hall has always been the sale of admission tickets. Advertisement, Food and Beverages, Royalty income and Convenience fee, etc. are other sources of revenue for a cinema. There have been attempts to diversify into other revenue streams to provide more options for out of home entertainment for the audiences. However, this also primarily depends on the sale of tickets because this model would work only when there are more number of people coming to the exhibition spaces to watch the movies. Therefore, the strategy of revenue generation of any cinema exhibition company would in final analysis take into account the number of halls and the audience footfall. To explain further, higher the number of halls, higher will be the company’s earnings and the higher number of people coming into the cinema hall would once again translate into higher revenue for the company. Table 1 illustrates the
The revenue generation techniques of the cinema halls have been one of the least explored areas of the communication studies. This essay is an attempt to look at the revenue generation strategies of the PVR Group, specifically, two halls, PVR Plaza and PVR Rivoli, located at Connaught Place, New Delhi. The financial year 2008-09, that is in focus here for the purpose of study, was marked as a particularly slow year for the Indian film industry for various reasons.
PVR Plaza and PVR Rivoli, represent the era of multiplexes which started in India with the advent of Priya Village Roadshow, (popularly known as PVR), in the market of cinema exhibition in 1997. A joint venture of Priya Exhibitors Private Limited and Village Roadshow Limited, an Australia based cinema exhibition company, PVR is now one of many corporate players that dominate the market. Before 1997, the single screen halls owned by small businesses and sole proprietors were the only players in the market.
The primary source of revenue for any cinema hall has always been the sale of admission tickets. Advertisement, Food and Beverages, Royalty income and Convenience fee, etc. are other sources of revenue for a cinema. There have been attempts to diversify into other revenue streams to provide more options for out of home entertainment for the audiences. However, this also primarily depends on the sale of tickets because this model would work only when there are more number of people coming to the exhibition spaces to watch the movies. Therefore, the strategy of revenue generation of any cinema exhibition company would in final analysis take into account the number of halls and the audience footfall. To explain further, higher the number of halls, higher will be the company’s earnings and the higher number of people coming into the cinema hall would once again translate into higher revenue for the company. Table 1 illustrates the
References: [1] http://www.pwc.com/en_IN/in/assets/pdfs/PwC-Indian-Entertainment-and-Media-Outlook-2009.pdf [2] IPL is a cricket league for the Twenty- Twenty format of cricket that has gained much popularity with the audience.