Multiplex Industry in India

Powerful Essays
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

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