Filmmaker Karan Johar had indirectly called out multiplex chains for high prices associated with film watching experience in theaters. During a recent roundtable discussion hosted by The Hollywood Reporter India, he voiced his concerns over films not performing in cinemas and reasoned it high ticket and beverage costs. Now Multiplex Association of India has given a sharp reply. KJo claimed the average expense to watch movies in theaters for a family of four goes up to Rs 10,000 which discourages viewers. Giving a strong response MAI states that a film is largely driven by content than ticket pricing.
Multiplex Association of India found it necessary to respond to Karan Johar’s remark allegedly putting multiplex chain in negative light. MAI contradicted, KJo’s statement of a family spending Rs 10,000, by stating they spend less than suggested. Defending the pricing model, the association mentioned the expense amount is approximately Rs 1560 which is way lesser than the figure hinted by Johar. MAI released a statement with precise data.
On behalf of MAI President Kamal Gianchandani, the statement read, “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.”
The statement further read, “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.”
MAI concluded with, “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.”