Multiplex and Single Screen Cinemas in India 2010

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 tier three cities. Favourable demographics, tax exemptions, quality locations such as malls, are driving and willingness of people to spend on recreation is leading to the growth of multiplexes in India.

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The report provides a snapshot of the multiplex and single screen cinemas market. Overview section includes the estimated market size of the film industry, growth rate of multiplex screens and segmentation of revenues across multiplexes and single screens in India. Various business models adopted by Indian multiplex operators are presented along with typical revenue streams and cost base. An analysis of drivers reveals that on the supply side - growth in film industry, tax exemptions and increasing availability of organized retail space have helped in growth of this sector while on the demand side favourable demographics, willingness of people to spend on entertainment are increasing footfalls. The key challenges identified include slowdown in economy, alternate modes of entertainment, development delays, increasing competition from DTH operators, piracy and uncertainty over entertainment tax exemptions.

The industry is characterized by variations in ticket prices based on the film and location of the multiplex, seasonality, low screen density, increasing average ticket prices, and reducing shelf life of movies. The key trends identified include PE/VC investments occurring in multiplex segment, new format in single screen theatres, shift to digital and 3D cinema and alternate modes of revenues. The competitive landscape identifies and compares each of the major multiplex operators with respect to their profit and revenues in the market since they dominate an industry where single screen cinemas are highly fragmented.Market Research

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Multiplex and Single Screen Cinemas in India 2010

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