Multiplex Association responds to Karan Johar's statement, "cinema exhibitors are responsible for high ticket, F&B prices"

The Multiplex Association of India (MAI) on Wednesday defended "dynamic and flexible" cinema pricing, which fluctuates based on factors like location, day of the week, seat type, film format, and cinema format.

Cinema exhibitors are now using sophisticated digital tools to stimulate audience demand and optimise pricing, said MAI while issuing a statement over the recent remarks by filmmaker Karan Johar.

Brushing aside Karan Johar’s remarks, who alleged high pricing strategies by cinema exhibitors, the MAI statement quoting its President Kamal Gianchandani said the average ticket price (ATP) across all cinemas in India was Rs 130 per ticket.

"The country’s largest cinema chain, PVRINOX, reported an ATP of Rs 258 for the fiscal year 2023-24. Additionally, the Average Spend Per Head (SPH) on F&B at PVRINOX during this period stood at Rs 132," it said adding "This brings the total average expenditure for a family of four to Rs 1,560 —significantly different from the Rs 10,000 figure carried in the media reports." MAI represents 11 cinema chains like PVR-INOX, operating around 75 per cent of the multiplex industry of India.

According to media reports, recently Karan Johar, while participating in a panel discussion with some other film makers had alleged cinema exhibitors are responsible for high ticket and food & beverage (F&B) prices.

He said that family members said that they don’t like to go to cinema halls as the average cost for a family of four including tickets and popcorn etc can be Rs 10,000, which is not in their economic planning.

MAI said cinema pricing is dynamic and flexible. The exhibitors also frequently offer discounts and promotions that make cinema outings more affordable, not just during off-peak times but even on popular days.

"Many of these initiatives can lower the overall cost of a cinema visit by more than 50 per cent, providing families and moviegoers with affordable options. All pricing structures are clearly listed both at cinemas and online, ensuring transparency and choice for customers," it said.

The MAI statement further said the demand for a film is largely driven by its content and appeal, rather than by pricing alone.

"Any evaluation of pricing in the cinema industry must account for the broader economics of movie business, which involves multiple stakeholders, including producers, distributors, and exhibitors," it said.

Each of these players contributes to the final cost to consumers, with prices ultimately shaped by the market forces of demand and supply.

"If lowering prices could optimise revenue for everyone involved, cinema operators would naturally make those adjustments without needing to be told," it said.

Moreover, cinema exhibitors continuously experiment with pricing models, collecting customer feedback and leveraging data analytics to refine their strategies. This ensures that the current pricing is both competitive and fair in the context of today’s market.