At a time when multiplex expansion has slowed down owing to increasing costs, fewer big-budget releases and intensifying competition from streaming platforms, PVR Inox is shifting focus to smaller towns and cities to reach audiences with limited out-of-home entertainment options.
The move comes as the company’s cinema count fell 2.5% to 352 in the first quarter of this financial year, while its screen count slipped 0.6% to 1,743. It aligns with a review by the information and broadcasting ministry on ways to address India’s low cinema screen density. Despite being the world’s largest film producer, India has fewer than 10,000 screens.
To expand capacity, PVR Inox is introducing its “smart screen” format, a lower-cost cinema model designed to reduce operating expenses and improve accessibility.
Pramod Arora, CEO, growth & investment at PVR Inox, said the company is pursuing a dual-track strategy by expanding its mainstream multiplex business while simultaneously building a new chain of low-priced cinemas. Average ticket prices at smart screens will be about 35% lower than the national figure of Rs 254.
The company expects to add 100 smart screens annually, beginning with 50-60 in the first year, in addition to its mainstream expansion target of 100-120 screens each year. PVR Inox currently operates 1,745 screens across 353 cinemas in 111 cities in India and Sri Lanka.
Arora emphasised that smart screens will be full-fledged theatres rather than stripped-down versions. Each is expected to cost Rs 2-2.5 crore to build, lower than about Rs 3.5 crore for mainstream screens and up to Rs 5 crore for premium formats.
The format will leverage digital technologies to cut manpower costs. Concessions will be sold via vending machines, tickets will be smartphone-enabled and ushers will be replaced with Internet of Things-based seat locators.
The roll-out will start in North India including Uttar Pradesh and towns in the northeast before being scaled nationwide. Funding will follow multiple models, including company-owned, franchisee-owned company-operated and asset-light developer partnerships.
India’s large film output of 800-1,200 feature films a year continues to provide long-term support for the exhibition sector, said Arora.
India had 157 million filmgoers in 2023, up 29% from 122 million in 2022 and 8% above the pre-Covid-19 level of 146 million, according to Ormax Media’s ‘Sizing the Cinema: 2024’ report. Still, this accounted for only 11.1% of the population.
The move comes as the company’s cinema count fell 2.5% to 352 in the first quarter of this financial year, while its screen count slipped 0.6% to 1,743. It aligns with a review by the information and broadcasting ministry on ways to address India’s low cinema screen density. Despite being the world’s largest film producer, India has fewer than 10,000 screens.
To expand capacity, PVR Inox is introducing its “smart screen” format, a lower-cost cinema model designed to reduce operating expenses and improve accessibility.
Pramod Arora, CEO, growth & investment at PVR Inox, said the company is pursuing a dual-track strategy by expanding its mainstream multiplex business while simultaneously building a new chain of low-priced cinemas. Average ticket prices at smart screens will be about 35% lower than the national figure of Rs 254.
The company expects to add 100 smart screens annually, beginning with 50-60 in the first year, in addition to its mainstream expansion target of 100-120 screens each year. PVR Inox currently operates 1,745 screens across 353 cinemas in 111 cities in India and Sri Lanka.
Arora emphasised that smart screens will be full-fledged theatres rather than stripped-down versions. Each is expected to cost Rs 2-2.5 crore to build, lower than about Rs 3.5 crore for mainstream screens and up to Rs 5 crore for premium formats.
The format will leverage digital technologies to cut manpower costs. Concessions will be sold via vending machines, tickets will be smartphone-enabled and ushers will be replaced with Internet of Things-based seat locators.
The roll-out will start in North India including Uttar Pradesh and towns in the northeast before being scaled nationwide. Funding will follow multiple models, including company-owned, franchisee-owned company-operated and asset-light developer partnerships.
India’s large film output of 800-1,200 feature films a year continues to provide long-term support for the exhibition sector, said Arora.
India had 157 million filmgoers in 2023, up 29% from 122 million in 2022 and 8% above the pre-Covid-19 level of 146 million, according to Ormax Media’s ‘Sizing the Cinema: 2024’ report. Still, this accounted for only 11.1% of the population.
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