The Multiplex Association of India has shared a statement countering filmmaker Karan Johar’s recent claim that high ticket and food prices at theatres discourage viewers. The filmmaker had said in a round table discussion recently that a film outing for a family of four costs ₹10,000. The MAI has countered that with average ticket price data. (Also read: Karan Johar says families no longer watch films in theatres due to inflated food costs: 'Can't buy popcorn for kids')
What Did Karan Johar say?
In a statement posted on behalf of MAI President Kamal Gianchandani, the association has addressed Karan’s claim. “The reports carried Mr. Karan Johar's comments suggesting that cinema exhibitors are responsible for high ticket and food & beverage (F&B) prices. We believe it is essential to provide a more balanced view on this matter,” read the statement. In an interaction with The Hollywood Reporter India, Karan had said that since a movie outing for a family can cost as much as ₹10,000, families do not spend that much on films, reducing their trips to the theatre.
In its statement, MAI countered that, saying, “In 2023, the Average Ticket Price (ATP) across all cinemas in India was ₹130 per ticket. The country's largest cinema chain, PVRINOX, reported an ATP of ₹258 for the fiscal year 2023-24. Additionally, the Average Spend Per Head (SPH) on F&B at PVRINOX during this period stood at ₹132. This brings the total average expenditure for a family of four to ₹1,560-significantly different from the ₹10,000 figure carried in the media reports.”
Demand for a film is largely driven by content
The statement also mentioned that cinema pricing is ‘dynamic and flexible’ depending upon a number of factors like location, seat type, film format, etc. MAI also said that it is a film’s content that is the biggest driver for the audiences, and not pricing. “It's a well-recognised fact that 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. 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 optimize revenue for everyone involved, cinema operators would naturally make those adjustments without needing to be told,” the statement read.
{{/usCountry}}The statement also mentioned that cinema pricing is ‘dynamic and flexible’ depending upon a number of factors like location, seat type, film format, etc. MAI also said that it is a film’s content that is the biggest driver for the audiences, and not pricing. “It's a well-recognised fact that 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. 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 optimize revenue for everyone involved, cinema operators would naturally make those adjustments without needing to be told,” the statement read.
{{/usCountry}}After going into details of how pricing is determined, the statement cautioned about now jumping to conclusions over it. “We believe it's crucial to consider the full picture before drawing conclusions about pricing, as it's a complex issue involving many moving parts. The goal remains the same: to provide audiences with the best possible experience at a fair value,” it concluded.
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