MAI refutes high ticket price charges, says average ticket price was Rs 130 in 2023

Recently, speaking at a roundtable conversation with the Hollywood Reporter, film director Karan Johar called out the high ticket rates charged by multiplexes in India, along with the price for the refreshments served in movie halls, which made movie watching for an average Indian family an exorbitant expenditure.

Addressing the recent media reports regarding pricing at cinemas and the concerns raised, the Multiplex Association of India (MAI) has issued a statement providing clarity on the pricing strategies and the overall cinema experience. MAI stated, “We believe in maintaining transparency and open communication with our audience, and we request for your continued support.”

Providing the dynamics behind ticket and food and beverage pricing, Kamal Gianchandani, President, Multiplex Association of India, in the statement issued, explained, “Firstly, let’s address the numbers. In 2023, 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. 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.”

He further maintained, “It is also essential to highlight that cinema pricing is dynamic and flexible. Prices fluctuate based on factors like location, day of the week, seat type, film format, and cinema format. Exhibitors utilize sophisticated digital tools to stimulate audience demand and optimize pricing, frequently offering 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%, providing families and moviegoers with affordable options. All pricing structures are clearly listed both at cinemas and online, ensuring transparency and choice for customers.”

The MAI urther stated, “More than anything else, 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.”

Additionally, unavoidable factors such as inflation play a role, and India has historically experienced high inflation rates. Nevertheless, 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, MAI insisted.

“At the heart of it all, our industry remains committed to delivering a diverse, high-quality, and accessible entertainment experience for all moviegoers. 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,” Gianchandani concluded.

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