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Table of Contents
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1 2 3 4 5 6 7 8 9 10 Entertainment Industry Multiplex Services offered by a Typical Multiplex Players of Indian Multiplex Industry Marketing Mix of Multiplexes Scope of Multiplex Risks and Concerns SWOT Analysis Why is there a Multiplex Boom? Why are Multiplexes preferred over single screens for movie viewers? 11 12 13 14 15 16 Segmentation and Target Group Marketing Media Channels for Communication Marketing Strategies Are the single screen theatres in India going to die soon? Strike Issue of Multiplexes References and Sources 30 31 32 34 35 38
Contents
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Acknowledgement
We, the students of TYBMS of the GN Khalsa College express our heartfelt gratitude for this fantastic opportunity given to us by Profesorr Shobha Mathews. This project has enriched our knowledge and experience. It will be our Endeavour to do such better projects in the near future. The mistakes which we might have done will be definitely corrected and we are most obliged to you for giving us this opportunity to prove our skills. Thank you Maam.
Our Team
Name Gurminder Singh Raja Singh Yashovardhan Bichu Kanika Datta Gurleen Kaur Sahil Mhadkar Roll # 05 08 18 22 38 39
Entertainment Industry
One of the fastest growing sectors of the economy is entertainment industry. Entertainment today dictates our lives, education, careers, earning money, all lead to the quest for higher and sophisticated entertainment. One seeks knowledge to improve the quality of life. The quality of life improves when the basic requirement of life are supplemented with entertainment in some form or other. Considering the current scenario, the entertainment industry is totally different from the past, as the modes of media used for providing services were different before the 20th century when compared with the present media. This can be explained properly with the bifurcation below A Look at the Traditional live entertainment industry: Theater - Play writers, Actors and Theater directors Music Composers, Songwriters, Singers, Musicians and Orchestras. Publication Authors, Journalists, Publishers and Printers A Look at the 20th century mass media industry: Film studios, Cinemas, Broadcasting, Record industry, Theme parks, Discothques et al. Indian Film Industry is a part and parcel of entertainment industry. It is most popular and affordable mass entertainment media in India. Almost 1000 movies are produced every year, so it is very critical to manage this industry, to manage its distribution, exhibition, etc.
Multiplex
Multiplex is a medium that offers a person composite entertainment comprising of a one stop destination to shop, entertain, and dine and watch a Varity of movies under a common roof. Multiplex are one of the means of lifestyle that offer to viewers the choice of watching a movie in a five star or three star environment. The Multiplex model is based on concept of umbrella entertainment built around a primary anchor- movie. The revenue streams, however, do not necessarily centre on a single anchor. Typically, the possible income generating channels in a Multiplex can include. The box office collections Rent from display system Food & beverage Product lunch rentals Promotions by companies to promote consumer goods. Presently there are approximately 13000 screens in India with equal number of space available for the same amount of theatres to be opened. The word multiplex has two meanings. Firstly it is a medium that often its consumers full entertainment including the pleasure of shopping, dining, enjoying and watching a wide range of movies under a common platform. Secondly it is a type of technology which is referred as Multiplexing with the help of this technology the same movie can be shown simultaneously in all the screens of the Multiplex with minor difference of 3 seconds between their screenings.
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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 govt.
The Problems faced by the Multiplex Industry Indiscipline among filmmakers. This made the industry fragmented and disorganized. Piracy leading to massive losses for the industry. Lack of resources in terms of finance, human etc. Lack of corporatized management. Limited studio space and lack of security lending to an expensive foreign locales resulting in drain of resources. Reluctance of financial institutions to fund non asset based ventures Lack of expertise to handle latest equipments.
2. INOX LEISURE Consistent performer Impressive capacity ramp-up over the last 4 yrs: Top 25 cites - compelling growth stories E-Tax exemptions
3. BIG CINEMAS Integrated Play on the Media & Entertainment Sector Exhibition Segment - The largest player Expansion through acquisitions Future Plans Film Processing - Leader controlling 70% of market Film Production & Distribution
4. CINEMAX Cinemax India (Cinemax) is one of the smallest multiplex exhibitors 56 screens across 19 properties Majority of the screens concentrated in the Mumbai territory. Predominant presence in the Western region The largest exhibitor in the Mumbai territory with a 35% share of the multiplex screens in Mumbai. Cinemax is now focused on expanding its presence across the rest of India and is seeking to aggressively add capacity across other regions
5. FUN CINEMAS Fun Cinemas is a cinema chain in India based in Mumbai owned by the Essel Group and promoted by E-City Ventures. The company operates with the brand name Fun Cinemas (the premium brand) and Talkie Town (the value brand) for all theatrical presence and cinema activity and Fun Gaming, for all game-based leisure options. Currently, the company has around 140 cinema screens: 45 premium screens under the Fun Cinemas brand and 90 digital screens. The company plans to have 300 Fun Cinemas screens, 250 Talkie Town screens and 1,000 digital screens by the year 2011.Fun Cinemas caters to the premium segment and promises facilities such as service-on-seats, online booking, and a loyalty program.
The 7ps actually differ a bit from company to company. The analysis done is on the basis of general considerations
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Product
Services offered are the elements that make up the total service package and include both tangible and intangible components. A typical product package offered by a multiplex includes the following: Ticketing options: The ticketing options in multiplexes are very systematic. There are lots of options available for booking the tickets such as advance booking, home delivery, internet booking, tele booking and current booking. Entertainment: Entertainment facilities are available for the children within the multiplex arena in the form of games arcade, fun house etc. Also, special events such as Valentines Day, Friendship Day and many more are organized which entertain the teenagers. Air conditioner: Multiplexes are fully air conditioned which add to the luxury. Cross word: Now days multiplexes have book libraries and cross words for book lovers. Food Courts and Restaurants: Now days multiplexes provide you with a variety of food in their food courts and multiplexes also have restaurants so that one can have a dinning cum movie experience. IMAX BIG CINEMAS has Sarson Da Saag, Spice of Italy and various other restaurants under its roof. Parking Facility: Multiplexes now days have huge parking area with proper parking facilities for the cinema lovers. Luxury Recliner seats: Multiplexes are now equipped with elegant and comfortable recliner seats for a luxury comfort taking the movie experience to a new level
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Below the table are different product levels existing in multiplex and the expectations made by the consumers. Product level Generic (the basic benefit) Expectations made by the consumer Viewing space in the multiplex, view the movie with the latest technology. Cleanliness in the multiplex, punctuality Expected (the expected benefit) in start timings of the show, comfortable seating arrangements. Augmented (in addition to the expected benefit) Potential (beyond the usual, pleasant surprise) Apart from the good quality of viewing, one expects great ambience, helpful employees, sophisticated interiors. Incentives provided by the multiplex, reward system.
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Price
The art of effective pricing is to establish a price level that is low to represent good level to the buyers but yet it should be high enough to allow the service provider to make his profit. Thus, the price level of marketing mix is considered to be most critical component both from the economic as well the social point of view. Indian multiplex follow 2 methods of pricing: Cost based pricing It is also referred as cost plus pricing. It determines cost of service delivery as well as predetermined rate of profit in order to arrive at a price. It is necessary to analyze all cost accurately and differentiate between fixed and variable costs in order to use the costs as a basis for pricing decisions. Competition based pricing In this method the price is determined on the basis of competitors price. Now the major competitors are single screen movie theatres and other multiplexes. For eg. The rates for single screen theatres are Rs. 100 whereas the rates in multiplexes are Rs. 250. Thus, there is a very high variation in prices in the multiplexes when compared to the single screen theatres. To cope up with the prices of the single screen movie theatres, nowadays multiplexes have priced Rs. 60 for its early morning shows that are screened regularly. The prices of tickets in multiplexes are quite high because of the ambience, comfort and the services provided by the multiplexes. The price of multiplex tickets varies according to the show timings and movies. The ticket prices are quite less for the morning shows. Nowadays multiplexes have priced Rs 50 - Rs60 for its early morning shows that are screened regularly.
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The PVR rates begin at Rs.90 and go up to Rs.225 on weekends. Its new luxury multiplex has tickets priced at Rs.750, with fully reclining seats and personalized menu to boot. The Big Cinemas tickets usually vary from cities to cities and they are higher for good cities like Delhi and Mumbai. The Big Cinemas ticket pricing also depends upon the services offered and the amount of people who come here to watch the movie. Therefore the Big Cinemas ticket pricing is usually less during the weekdays but certainly mo suing the Sunday and the holidays. But though the Big Cinemas ticket price is high still people prefer it. The Big Cinemas ticket pricing also varies from place to place as the more developed places have greater facilities thus the prices are also high. Therefore you will come across some minor differences between the Big Cinemas ticket price. The Big Cinemas tickets purchasing can be done through the online mode also. The online mod helps in saving a lot of time. The Big Cinemas ticket pricing is a combination of the price of the ticket and the tax added to it. Therefore one can see that the Big Cinemas tickets are more than the others just because of the comfort and the facilities that they offer. For the people price is not important but comfort is more important.
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Promotion
One of the key and the most important elements to marketing mix is promotion which is used for the purpose of encouraging sales and also helps to convey the customer the position of the services offered by the multiplexes. Also promotion helps to create awareness among the customer. The tools used by multiplex industry for the marketing of services are advertising, sales promotion, direct marketing, news papers, postage and web. These tools are used to create favorable response from the target audience. The biggest advantage to the multiplex is that it has a very wider area of scope to carry out its promotional as well as day-to-day activities. Also, one of the important reasons is that it is located in the centre of the city which makes it easily accessible from all the sides. Due to large space, many companies and organizations market their own product and services within the multiplex as they are able to target their own set of target customers. Also, many of these organizations give advertisements to be screened on the 4-screens. Out of the amount spent by the organizations for advertising 2% of it comes in the use for cinemas as a part of promotions, films, slides and signage. Every multiplex has its own set of objectives when it follows the promotional strategies. The most important strategies are: 1. Awareness: The multiplex takes full care that its objective of, making the multiplex familiar to one and all is accomplished. But now their main objective has been shifted to boost up sales with the help of many promotional activities.
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2. Brand Visibility: Branding should be done in such a way that the people have good recall value for it which helps to increase sales. The brand visibility is done by making the people aware about the logo of multiplex, its location, accessibility and various such factors. 3. Induce Sales: Selling the services is one of the key issues of a multiplex. Their services include viewing of movies, cafeterias, entertainment arena and so on. The increase in sale is possible only due to the promotional activities. 4. Induce first time trial: This can be done for those individuals or those groups of people who are unaware about such concept of the multiplex and the benefits derived from it. Other Promotional Services 1. Loop Mobile Offer: Buy 1 movie ticket and get 1 Free for any movie, any show on Friday Loop Mobile has tied up with Cinemax multiplex chain and Sterling Cinema in a bid to captivate its subscribers with the magic of Movies every Friday. Loop Mobile subscribers can now watch a new movie every Friday with Loop Mobile First Day, First Show. The association allows Loop Mobile subscribers to avail one free movie ticket on the purchase of one movie ticket. This is for any movie; any show timing and every Friday. One can also purchase a combo pack of regular Popcorn & Coke at just Rs. 50. Through this tie-up with all 13 Cinemax theatres and Sterling Cinema in Mumbai, Loop Mobile subscribers located anywhere in the city will be at convenience.
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2. Vodafone launches Vodafone Tuesdays (Buy one movie ticket and get one free on Tuesdays) Vodafone, one of Indias leading cellular service providers has introduced Vodafone Tuesdays wherein Vodafone customers can enjoy the exclusive scheme of getting two movie tickets for the price of one. The Vodafone Tuesdays offer is available at select movie theatres across Fame, Cinemax and single-screen theatres like Roxy, Premier, Premier Gold, Sterling and Orama 4D. The coupons for a forthcoming Tuesday can be downloaded by any Vodafone subscriber on any day of the week.
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Physical Evidence
In order to judge the quality of services, the customers rely on tangible cues. Physical evidence thus aims at enhancing the customers perception of the services offered. It also influences the employees performance at the time of service delivery process. Essential evidence and peripheral evidence are the two elements of physical facilities. Both these elements should be well coordinated in order to understand the potential impact and create the desired image of excellence in services. Essential evidence are dominant features like the building area of the multiplex, its parking area, signboards, etc. whereas the peripherals evidence are less dominant features such as the admission cards for its members (staff). Thus physical evidence of multiplex can be summarized into: Ambience factors Air Conditioning Excellent ventilation Clean floors, wash rooms and surrounding Design factors Uniform Appearance Extensive parking lot Spacious interiors Social Factors Well dressed employees Courteous Family atmosphere
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Place
Place includes the surrounding, the actual location of the multiplex, accessibility from various places, facilities available and other place related factors. The place decision of the multiplex depends on the location and the distribution channel. The main problem for creation of channels for services is that they cannot be manufactured in one place and distributed all over. They can be offered from either single outlets or multiple outlets. FAME, CINEMAX and BIG CINEMAS are the best examples of an organization that has multiplex outlets situated at various places of the city and provides movie viewing services with latest technology. The Place factor plays a crucial role in case of multiplexes, this is because people are basically concerned with accessibility of the place, in case the place is out of the city then people wont prefer going there because of the time and cost involved in reaching the movie theatre. On the contrary if the Multiplex is located somewhere in the prime location or near railway stations then people can easily reach there and hence they prefer these multiplexes. Eg: Sion Cinemax Secondly, the place selected should be safe and clean viz. the locality and the crowd surrounding the place has to be decent and safe, this is a must because all the people come with their families and friends. Thirdly, there has to be abundant place for parking of vehicles, many people have their personal cars/bikes hence parking space needs to be there in any cinema hall. Generally there is a pay and park system in the cinema halls but as a marketing strategy they can stop charging for parking so that more people prefer the place.
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People
In case of multiplexes, for that matter any other service as well, the employees very often represent the company and are responsible for the image created in the mind of their customers. People i.e. the human resource is the most important factor of any company, be it service sector/ manufacturing sector. The service provider must train and equip the frontline staff with the capabilities to perform the service, in order to deliver quality service to the customer. This causes the service firm to integrate appropriate human resource practices into its strategies. The working staff in a multiplex must be decent, soft spoken, cooperative and helpful; in case there is an emergency like health problems/fire problems then they should help the customers in whatever way possible. In case any female needs any kind of help then there must be women attendants present in the premises. The security also needs to be strict and tight so that there is a sense of safety and security in the minds of the people. People have a direct link with the profits of the organization and thus the management strives hard in developing Customer Conscious Employees. It is the people, who play an important role in overall progress and development of the organization. The peoples way of dealing with its customers helps them to create a better image for the organization (multiplex) and this in turn help in creating good image in the minds of the people for the multiplex which in turn increases the profitability of the multiplex.
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Process
The process of a service refers to how a service is provided and delivered to the customer. To design the process of a service various factors are involved such as Location facility Design and layout for effective workflow Procedures and job definitions for service providers Extent of customer involvement Measures to ensure service quality Equipment selection Adequate service capability. Every multiplex has a well defined and systematic process designed by their IT team. The process should be designed according to the ease of use and understanding of the staff that will be operating the system. For instance, in case of booking tickets, there are a lot of options which one has like advance booking, home delivery, internet booking, tele booking and current booking. So there must be proper record maintained of all these bookings so that there is no confusion. If not done precisely then there can be incidents where two different persons can get the same seats for the same movie show which will create further issues. There has to be a systematic and elaborate process in all the departments like the Security Department, Administration Department and the cleaning staff for proper coordination.
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Scope of Multiplex
The cinema exhibition industry in India is growing at 10% per annum driven by multiplexes, which are expanding rapidly in major metropolitan cities as well as second and third tier cities. Favorable demographics in a cinema-crazy nation, tax exemptions, and quality locations such as malls, are driving growth of multiplexes in India. Most of the multiplexes in India are anchor tenants in the large format malls making a favorite destination for the youngsters as well as the families. Multiplexes captured the market as complete family entertainment centers. The digital revolution has helped the Media and Entertainment industry to go digital. There are more than 100 digital cinemas in India today. They, along with the multiplexes have completely transformed the experience of the viewers. With an increase in the incomes of the people and increasing expenditure on the leisure activities, multiplexes are poised for high growth in India. Other than the sale of the movies tickets, Food & beverages is the major source of revenue for the multiplexes. Space economies and the optimal utilization of the capacities are the major advantages or benefits that the multiplexes enjoy over single screen theatres. India currently has 11500 existing screens, 95% are standalone, single screens. These single screen cinemas are poorly maintained as the owners find it difficult to upgrade and renovate their facilities, due to unavailability of organized finance. The deteriorating quality of these cinemas dissuaded viewers and they started using alternative viewing options.
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Over the last few years, multiplexes have emerged as a trend in urban India. "Multiplexes" are essentially cinemas with 3 or more screens. They provide a quality viewing experience and are generally located around shopping malls to increase footfalls in these malls. Each screen in a multiplex has small seating capacities in the range of 150-300 seats as compared to single screen cinemas which have capacities in the range of 800-1,200 seats. With around 11500 active screens, India is under screened. China, which produces far lesser films than India has 65,000 screens while the US has 36,000. Indias screen density stands low at 12 screens per million populations. There is a need of at least 20,000 screens as against the current 11500. This gives multiplex operators enough room to grow as the traditional single-screen theatres do not have the financial wherewithal nor do they enjoy tax incentives. India's craze for films has not been fully exploited by the "Film Exhibition" industry due to the lack of screen density in the country coupled with the poor quality of screens. "Multiplex Cinemas" offer an alternative to tap this potential by providing a quality experience to the viewer as well as economies to the multiplex operator. "Films" has been one of the integral components of the Indian entertainment industry contributing nearly 27% of the total revenues of the entertainment industry. Besides, films also contribute to other components of the entertainment industry like music, television and live entertainment. 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.
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SWOT Analysis
Strengths: Entertainment is one of the most booming sectors in India due to its vast customer reach & a large customer base. Change in the lifestyle and spending patterns of the Indian masses on entertainment. Indian film industry is second largest in the world and the largest in terms of the films produced and tickets sold. Weaknesses: The Entertainment sector in India is highly fragmented. The lack of efforts for media penetration in lower socio-economic classes, where the media penetration is low. Opportunities: The Indian film industry is the largest film industry in the world in terms of number of films produced and tickets sold each year expecting growth will be continue in upcoming years in to producing movies. The increasing interest of the global investors in the sector. Opportunities for expansion in the rural areas (which is still untouched).
THREATS: Piracy, violation of intellectual property rights and High Real Estate price is a huge barrier to profitability of this sector. Lack of quality content and increasing competition from other entertainment sources like IPL has emerged as a major concern.
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One is a Mall with a Multiplex. E.g. R Mall has a multiplex R Adlabs within itself. Recently, Fame Adlabs too opened its new multiplex in Malad within the mall named Inorbit. Second is a Multiplex with shopping Facilities and various Amenities within its roof. E.g. Imax Adlabs is a multiplex having within its games arena, cafeteria and other such amenities. Also, a person can shop during the promotional activities carried out by various companies within the multiplex and take advantage of various benefits and offers provided by them. The relationship between the multiplexes and the malls is referred as the Synergy Effect. It thus helps in satisfying the consumer with the required amount of amenities and facilities needed by bringing all the required resources under one common roof. This helps the consumer to enjoy his whole day at one common place instead of planning to go to various places in order to shop, dine and have fun with his family members. Provides employment facilities even for those who are not involved directly: This is one of the interesting cases found in the multiplexes. There are many departments involved in the smooth functioning of the multiplex such as Human Resource, Marketing, Food & Beverages, Administration and so on. All these departments are employed directly as per the requirements. Now, there is also a lot of employment scope for those people who are not involved directly in the multiplex industry. Many of the multiplexes that have huge space such as Imax Adlabs organize many events such as childrens day, teachers day, child festival and so on. Thus, to organize such events many people from outside are involved such as decorators, musicians, caterers who indirectly gets employed.
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More number of screens: This is one of the most important reasons for the multiplex boom. These are more screens, roughly 3-5, when compared to the normal movie theater (Single Screen). As there are many screens in the multiplex, people get a huge variety and range of movies to view. Also, the movie timings are flexible and thus a customer can view any movie of their choice as per their availability and convenience. Due to this the turnover of audiences as compared to the single screen theatres are relatively very high. Risk minimization: Also, the benefit that the multiplex has over the single screen movie theatre is the risk minimization factor. The multiplex has various partners, various company collaborations, and thus they work together to achieve the goals set up by the organization. Also, the risk is minimized when the space is let out to various corporate organizations such as Reliance, Vodafone, HDFC, Citibank and so on for product launches and various promotional launches.
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Why are Multiplexes preferred over single screens for movie viewers?
On the basis of our analysis, 72% of the people think that Multiplexes are better options than Single Screen (Cineplex) whereas, only 28% negate the fact. The reason behind this can simply be answered by pointing out the difference between single screen and multiplexes. The mushrooming of multiplexes has thrown up huge competition amongst multiplexes and is giving the stand-alone theatres a run for their money. However, multiplex owners are still upbeat about their business. In India, we had 3,100 million admissions last year and only 12 screens per million. So there is a huge potential for growth. The road ahead for theatre owners is both exciting and challenging. The service industry is ever changing and you have to change proactively. Multiplexes The multiplexes enjoy rebates and exemptions from the government. (eg - Entertainment Tax) They just dont offer movie but also offer so called add-on facilities They offer customer with choice in different movies Talking of the ambience, multiplex offer better sitting , Dolby digital sounds and good graphics for viewers Multiplexes, by offering food courts, ATM Facility, shopping facilities can offer Add value to money to customers. Single Screens Single Screen doesnt enjoy such exemptions on part of government Cineplex on the other hand offer only movies and no extra facilities. Single screens dont offer such facilities with no options to the customers Single screens on the other hand dont offer such facilities to viewers. Single Screen on the other hand doesnt offer add value to money to the customers income.
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1.
Groucho (Age grp. 25 44 yr.) This group consist of 32% of Mumbai audience (Premium Group) They visit the cinema halls occasionally (Once in 3 month) Prefer to watch Hindi Thriller movies and also Regional movies. Come late to movies at least by 15 minutes and Prefer to watch with family.
2. Westerner (Age group is 35 55 yr) This group consist of 5% of Mumbaikars residing in western part of the city. Visit cinema hall regularly (Once per week) Prefer to watch English movies as action, animation. Come 10 minute late to movie hall and prefer to watch movie with family and children. 3. Geeks (Age group is of 15 24 yrs) This group consist of 27 % of the population from other part of the city. Visit cinema hall frequently (Once in a month) Prefer to watch hindi action, war Dubbed English movies either alone or with friends Enters 5 minutes late in the movie hall.
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Marketing Strategies
Movie Marketing: this is one of the most important areas which is marketed & helps in creating a brand image for the company. The main focus is to market the movies that are big screened along with creating & making aware the people about the multiplex. Also during such premiers press & various media channels are invited to cover the whole premier event which has a positive effect on the multiplex. As stars are called for the premiers of special movies along with outside people, this act as s synergy effect and thus more & more number of people become aware about the multiplex and its day to day activities. All above this with the help of various media channels, huge & extensive advertising is done for the movies which add to the recall value on the minds of the people. Caf Marketing: This is an altogether new concept started and undertaken by multiplexes for marketing its movies. It basically helps in promoting its movies with the help of eatables sold in the cafeteria within the premises of the multiplex. Here the eatables are named after the movies & various film stars during the release of much hyped & successful movies. E.g. Fame Adlabs during the release of the movie Choker Bali arranged special Bengali dishes relating with the theme of the movie. The concept
became a huge success and now a separate section is being for the Bengali dishes. The caf situated within the given arena in multiplex. Special Events Marketing: the positive point that multiples gains over others is that along with the screening of various movies it also screens special event such as F1, cricket matches, various documentaries and social messages that are to be passed n community. Multiplex also organize celebration of religious festivals as
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well as special days such as valentine day, friendship day, Independence Day & republic day & events such child fest. Also, it arranges for many events & birthday parties as per the customers demands. Such activities give unique experience to its customers who feel the same home & personalized atmosphere present there. Tie up With Various Corporate: Multiplex has tie-up with many corporate associates as they help each other in their day to day activities. Both of these go hand in hand. Their relationship is of give & take type; it is like the corporates organize or the host the events that are conducted in the multiplex & in turn the multiplex gives it sales indirectly. E.g. Womens Day Celebration on 8th March in IMAX by Citibank. It was a huge success for both made their customers satisfied & also lot more loyal customers for them. Movie Shootings & Advertisements: Multiplex also allows shootings for movies & advertisements as it helps to publicize & create a brand name for itself. Movie shootings, advertisements take place here because of the ambient factors & also space the surrounding. Also it acts as a business activity as the movie makers are not given the premises free of cost. Special Screening of Hollywood Movies: A new concept started by many multiplex is the screening of Hollywood movies at their theatres. These special screenings are referred as Midnight Matinees. Midnight Matinees is another innovative attempt on the part of multiplex to combine various elements of leisure & partying with cinema viewing.
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on revenue share. With each movie would start a new bout of conflict over who gets how much, with each party expecting more, Multiplexes wanted a larger share in the pie as according to them, they get the audiences to see the movies. However, distributors / producers would argue that content generation is more critical hence they should get an equal share if not more. A couple of other issues like the multiplexes inability to clear huge amount of out standings towards the distributors, not sharing the benefit of certain incentives given to them by the government with the distributor, led to the eventual deadlock. Bollywood producers incurred losses running into hundred of crores due to the strike over revenue-sharing between producers, distributors and multiplex owners. This ended when the multiplexes have agreed on sharing revenue of all movie ticket sales for the : For First Week For Second Week For Third Week For Following Week 50-50 basis 47-53 basis 40-60 basis 38-62 basis
On account of negotiations between the actors and the producers they have come up to this percentage distribution as per film. This is classic example of how any business or industry gets affected by the important development in it. The strike has also affected auxiliary industries like hoardings, public relations and advertising, as their work has come to a complete halt.
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Apparently, this industry has suffered an estimated Rs 100 crore loss. This shows how the multiple dynamics act as very important factor in determining the industry growth and development.
MULTIPLEX BUZZ!!
The nation's multiplex industry is all set for an unprecedented boom buoyed by positive regulatory changes and booming consumerism. Multiplexes /megaplexes have been instrumental in contributing 28 percent of the total theatrical sales for the film industry according to a report by Systematix Institutional Research. Industry experts estimate that top six multiplex chains have plans of 300-500 screens each by FY-10. DLF, a leading real estate player in the country, plans to invest US$ 298.12 million for the expansion of its multiplex business. The company has planned to add at least 500 screens in the next four to five years across the country. Entertainment conglomerate Adlabs Cinemas has drawn up a plan to build 12 megaplexes in India where you can not only see movies but also cricket and soccer matches on screen. Multiplex chain PVR Cinemas, which currently has 92 screens, is also planning to add over 150 screens across India, staggered over a period of three years from 2008-2010, with a total investment outlay of around US$ 71.55 million. Cinemax India, the multiplex chain which currently has 55 screens over 17 properties across the country is planning to scale up its presence to 299 screens across about 100 properties by fiscal 2010
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