INTRODUCTION

THE INDIAN FILM INDUSTRY SCENARIO

Entertainment and Cinema are synonymous with each other. Cinema is so interlinked with our
lives today that it is difficult to imagine life without it. Cinema clearly opens a most useful
window onto a culture and by studying a culture one acquires deeper understanding of the
customs, behavior patterns, values, arts and crafts and also the practices of everyday life of the
people inhabiting that culture. India, is thus one such country that is so diverse in its nature but
secular in its form. All different cultures and traditions are an integral part of our country, which
again explains as to why the Indian cinema industry is such an enormous one. The journey of
multiplex which was started in 1997 with inauguration of first multiplex Priya Village
Roadshow (PVR) Saket in New Delhi is currently at crossroads roughly a dozen players
have entered in the business in small or big way. India is the largest film-producing country in

the world; producing over 900 films annually. Indian cinema, thus, are gaining popularity like
never before. These are screened not only in Asia, but also in East Africa, Mauritius, the
Caribbean, the Middle East, Britain, Canada, Australia, the United States and the countries
associated with the former Soviet Union. The world of Indian cinema is a very fascinating one
that has mesmerized every person, on a global platform. Though a large industry, very few of us
actually know its intricacies and its main elements that actually go in a make it a great form of
entertainment for the global masses. Indian cinema, like many of the other cinema industries in
world, both reflects and is reflected through the country`s political, economic, social and cultural
aspects.
Deeper insights into the complex processes of modernization, colonialism, nationalism and
freedom for women can be acquired through the Indian cinema. When we consider Indian films,
we see how the filmmakers have promoted westernization, the emancipation of women & the
other caste related problems, the rights of the minorities and mostly importantly the relationships
between Hindus & Muslims. Even aspects like fashion & lifestyle, have played a central role in
Indian society and have generated awareness and have influenced public opinions on issues like
drugs, violence and sex. The knowledge of Indian cinema provides an entry into the thoughtworlds and performance-worlds to the people interested in this art. Many Indian film directors,

right from the pioneers such as Dadasaheb Phalke to the modern ones like Yash Chopra, have
deployed their creativity along with traditional forms of dance & mime, folk & classical music
to enhance the communicated experience.
The following are the key trends witnessed in this industry:
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. Revenue from new media, including mobile and online rights,
is expected to increase after the recent introduction of 4G services by mobile operators.
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.
Resurgence of regional cinema: While Bollywood has continued to rule the filmed
entertainment market, of late, regional cinema has been witnessing a surge in investments from
major film studios to tap the potential of underpenetrated markets. This segment, which is
dominated by South Indian cinema, has pushed the boundaries with the main growth being
witnessed in Marathi, Punjabi, Bhojpuri and Bengali cinema.
At the beginning of 2014, the four major players in the multiple-screen theatres business
were PVR (408 screens), Inox (296), Big Cinemas (254) and Cinepolis(100). By the end of the
year, while PVR and Inox held on to their top ranks, Kerala-based Carnival Cinemas had cruised
its way to the third spot, having added nearly 260 screens after acquiring Anil Ambani's Big
Cinemas and HDIL's Broadway Cinema. And though Cinepolis too had bought out Subhash
Chandra's Fun Cinemas, it had to be content at a place below Carnival.

WHAT IS A MULTIPLEX ?
A multiplex is a movie theatre complex with three or more screens. The largest of these
complexes are sometimes referred to as a megaplex. In India, the mushrooming of multiplexes
since the mid-90s has changed the dynamics of the Indian Film Industry. Production costs are
now recovered in days, not months and viewers have really caught on to the concept. There have
been concerns over high ticket prices and the phenomena has predominantly been restricted to
the larger cities. The structure of the multiplex mall explores the consumer psychology, where
customers who come with the intention of watching a movie are made to pass all the floors in the
shopping mall. It increases the possibility of their making some impulsive purchases.
Multiplexes in India are given benefits for their development as they form a major part of the
entertainment industry. Benefits such as overall tax concession, reduction in entertainment tax
and so on are provided by the government. With multiplexes came the multiplex style of
management: plush seats, superior sound quality, add-ons all at a price.
Consumerism has always existed. The multiplex has various halls with different seating
capacities ranging between 200 to 500. This allowed the Multiplex operator to choose a
theater depending upon the movies potential which help them utilize higher capacity
utilization. Multiplex also help utilize show timing based on the screening duration, the
number of shows could be maximized. Moreover, depending on the movies performance,
the exhibitors had the option of moving it to theatres with different seating capacities and
show timing. Today multiplexes are offering better facilities to a section of the audience that

can afford it like: online ticket booking, attractive sales promotion schemes, SMS booking, tollfree calling services etc. The major plus-point of a multiplex is the variety available. You can put
up two or three movies at a same time. Cineplex business owners are covered. If one film isnt
going house full, it will be subsidized by two that are. The classic single screen cinema with over
700 seats has to fill the house to be successful and for that they need blockbusters and for cinema

goers it is the variety that they look for. Its the same reason why we prefer shopping in malls as
opposed to going to single shops. Variety under one roof is always good, even when it comes to
cinema. Financing, exhibition and distribution were directly affected. It also led to more
organized and transparent box-office reporting. It is pertinent to note that even though the
number of multiplexes is on the rise, the average number of screens is abysmally low when
compared to other mature markets in the West.
The multiplex model was built around a primary anchor Movies, though the revenue flow
also happens through several income-generating channels other than box-office collections.
The other revenue generation channels are food and beverage, product launch rentals and
various other promotions by companies. In the recent past luxury multiplexes have come up
with new experiences like partying in the theaters while the movie is running.Multiplex
owners, try and increase their income and reduce the expenses to increase their
profitability. On the one hand the primary sources of multiplex income are: Patrons
spending viz. ticket sale, F&B, and parking, Advertisement Income, Management fee and
Revenue sharing.

With the boom in the multiplexes and the trend of multiplexes which can be seen in India, a
question has been raised that, are single screens going to die soon. The perfect answer to this
would be a big NO. Single theatres would do well in smaller towns where multiplexes dont
go. They themselves have to look and explore their potential to serve better in the rural or their
expected market.

THE LUDHIANAS SCENARIO

Ludhiana is a city and a municipal corporation in Ludhiana district in the Indian state of Punjab,
and is the largest city in the state with an estimated population of 1,693,653 as of the 2011
Census. It has an area of about 3,767 square kilometers. The city stands on thee Satluj Rivers
old bank, 13 kilometer south of its present course. Changing the very face of Indian cinema, ten
years back came the very first multiplex and such has been the runway success of this cinema
viewing experience that today we have scores of multiplexes coming in around Ludhiana. PVR
Ltd has taken lead in Punjab, by opening their first four-screen multiplex at Flamez mall in
Ludhiana.
With the entry of multiplexes, which provide better quality movie watching experience at a
higher price compared to single screen theatres, more and more income group people are coming
back to the theatres thus unlocking the fatten demand. This is a classic case of leisure
consumption winning over value proposition in India. As content supply booms, more and more
people will turn to multiplexes because of the willingness of people to pay for such services. This
has largely been possible due to a growing section of audiences collectively and colloquially
defined as the MULTIPLEX AUDIENCES. These are the upwardly mobile section of the
audience which dont mind paying for a story well told, no matter how unconventional it is. This
in turn has given rise to the multiplexes- swish, clean, popcorn-smelling environments which
woo you with combo meals and a great film. Producers were quick to spot this trend as starting
creating cinema which was largely aimed at the multiplex audience.

REVIEW OF LITERATURE

A literature review is an account of what has been published on a topic by accredited scholars
and researchers. It is part of the introduction to an essay, research report, or thesis. In writing the
literature review, the purpose is to convey to the reader what knowledge and ideas have been
established on a topic, and what are their strengths and weaknesses. As a piece of writing, the
literature review must be defined by guiding concept. It is not just descriptive list of the material
available, or a set of summaries.
Literature reviews provide you with a handy guide to a particular topic. If you have limited time
to conduct research, literature reviews can give you an overview or act as a stepping stone. For
professionals, they are useful reports that keep them up to date with what is current in the field.
For scholars, the depth and breadth of the literature review emphasizes the credibility of the
writer in his or her field. Literature reviews also provide a solid background for a research
papers investigation. Comprehensive knowledge of the literature of the field is essential to most
research papers.
1. Prashant Mahesh (2007) said that if multiplexes constitute just 1% of the total number
of cinema halls and 4-5% of the 12,900 screens in India, the industry is talking about the end of
single screens. Single screens, with their low quality ambience, would find it tough to survive in
the long run, it is felt. Over a period of time, theatres will die a natural death. This because there
is a rising demand for quality cinema exhibition infrastructure. Also, before long, digitization
will be the standard and exhibitors will have to shift to it. Though the prospensity to watch
movies in India is high, there is a gap in terms of quality-viewing experiences between the
metros and the smaller cities but the game is slightly different here from that in metros. For one,
multiplexes are forced to price their tickets lower as affordability levels are lower in smaller
cities.

2. Debshika Dutta (2009) pointed out that the recent alliance with big west entertainment
like Walt Disney and Warner Group are surely taking Bollywood leaps and bounds ahead from
its current time and also leading India to a platform where it would become the most favourable
destination for many global production units of film sector. Certainly the opening of Indian film
industry to Foreign Direct Investment is itself stepping into a larger and worldwide network.

3. Nasreen Teher & Swapna Gopalan (2007), concluded that corporatization is

creating an avenue for better practices bringing about an increased level of professionalism in
business and accounting practices and opening up new avenues for this industry to earn revenues
through advertising, co-branding, and merchandising. In view of changing landscape , the Indian
Film industry will possibly witness certain notable trends over the next several years propelling it
towards gaining recognition as a major player in the global market. Both of them opined that
globalization of the film industry was not a completely new phenomena; by penetrating virtually
every society , the international spread of cinema resulted in films becoming the globalized
medium.

4. Ratna Bhushan (2002) in his study reveals that deep pile carpets, glittering chandeliers,
rest rooms strutting marble. The multiplex is dying to pamper the consumer. Half-empty theatres,
especially on weekdays, are a reality multiplex operators are grappling with. Multiplex chains
blame it on the dearth of crowd-pulling blockbuster. But increasingly, theatre owners are
realizing that the culprit may lie closer home: High ticket prices. At a time when DVDs and
home theatres are very affordable, how many families still consider the Rs 1,000-odd to spend
for a weekend outing at any up market multiplex to be of good value? Very few, it seems. Thus
the cost is the most important constraint that hinders the huge crowd attraction towards
multiplexes. Industry watchers say that like any other industry, as multiplexes evolve, coming
years shall see segmentation or the emergence of multiple formats. Thus with cost cutting
strategies multiplexes would be able to cater the niche markets.

RESEARCH METHODOLOGY

Research methodology comprises of defining the problem, collecting, organizing and evaluation
of data, making deductions, reaching conclusions and suggesting solutions.
1. Scope of the study
The scope of the study is to get the first hand knowledge about the customer behavior and their
perception and preference for multiplexes in Ludhiana city. The factors like price, quality, place,
the service delivery, ambience, physical elements- interior, parking and many more do influence
the perception and preference of the customers towards a particular service.
2. Research Design
The research design constitutes the blueprint for the collection, measurement and analysis of
data. It is the strategy for a study and the plan by which the strategy is to be carried out.
I have used Descriptive and Experimental research studies. It is descriptive because this study
deals with describing the customers perception and preferences for multiplexes in Ludhiana.
The present study incorporates the collection of both primary and secondary data for an in depth
investigation.

Primary Data
The primary data are those which are collected afresh and for the first time, and thus happen to
be original in character.
For our research I have used the questionnaire survey method to conduct analysis which were
provided to respondents of different age groups and they were personally interviewed to fulfill
the objectives of the study.

Secondary Data

Secondary data was collected so as to have accurate results and the required data was collected
from various newspapers like The Business Standard, Tribune etc. and internet to gather relevant
information regarding the topic.

OBJECTIVES OF STUDY
1. To understand consumer attitude towards latest trends of watching movies in
multiplexes.
2. To study the behavior of cinegoers of different age groups.
3. To study the strategies adopted by different multiplexes.
4. To study the factors affecting the choice of the respondents of different age
groups.