Problem Statement Cinema today is in a transition mode. It is growing towards adopting technologies that are being developed. This would ease the process on the business front by reduce the cost of operations. The technical aspect of cinema would also be enhances by better quality in sound, picture. These developments are also being seen in other segments of entertainment that include television. With digital delivery gaining popularity and recording of television content made easy. The need to go to the theater to watch a movie is reduced. So why would they leave this convince to go to the theater to watch a movie. It is the experience of going to the theater that makes the difference. It is the out of home activity that people are taken in to. This project proposes to make the cinema going experience for a customer more pleasant by easing the process involved through the use of the technological development that is taking place in the cinema industry. Making the trip to the cinema more interactive an fun. Making the entire cinema a unified package.
Problem statement Research Analysis Synthesis Redefined Brief Brainstorming Concept Detailing Market Theater Consumer Technology Design Process
Market Understanding The Indian Entertainment has grown at double the pace of other Industries at 19% CAGR. This shows the scope of the market and its potential for expansion. When segregated the Entertainment industry consists of the television Industry which has a major holding and then the print and thirdly the film industry. But today, the Entertainment Industry is in a consolidation phase as boundary lines between films, music and television are fast disappearing. Skills and resources are being pooled extensively. The Indian film Industry is the largest in the world in terms of the number of films produced per year and number of tickets sold it contributes to nearly 27% of the total revenues of the entertainment industry. Approximately twenty-three million Indians go to see a film every day. The overseas market has become increasingly lucrative for Indian producers with most films realizing 15-20% of their income from overseas The FICCI-KPMG study values the Indian film industry at $2.11 billion and projects its growth at 9.1% till 2013. the accordance of the Industry' status to the film industry, satellite channel penetration, the retail boom in the channels for music sales, the use of digital technology in all spheres of entertainment and the growth of multiplexes have contributed to the growth of this sector. Growth rate of the Entertainment Industry Segmentation of the Entertainment Industry Growth Forecast for Entertainment and Film Industry
Cinema Houses Movie theaters are commercial operations catering to the general public who attend by purchasing a ticket. The movie is projected with a movie projector onto a large projection screen a front of the auditorium. India currently has 11500 existing screens, 95% are standalone, single screens. These single screen cinemas are poorly maintained as the owners find it difficult to upgrade and renovate their facilities, due to unavailability of organized finance. The deteriorating quality of these cinemas dissuaded viewers and they started using alternative viewing options. Customers would see movies on pirated disk. Specially in smaller towns were the movie would arrive a few weeks or even a few months after its release. Thus the cinema exhibition industry slowly declined but today with new multiplexes coming up in cities this is slowly changing. The box office or ticket counter was a single manned outlet where the issuer would just give you the ticket after a long wait. The posters of the film were usually hand drawn and static and did not provide opportunity for any kind of change. The projector would project the movie from a 35mm reel which would detroit over time and was also bulky. The quality of picture and sound was not too good, so were the interiors and the restrooms.
Cinema Houses- the change The great picture quality, sound, even the variety of popcorn are all part of the new multiplex Industry. This exciting approach to exhibit movies has adopted new technology, variety and flexibility into their overall package. Multiplex theaters often feature regular seating however the screens are often smaller than those found in traditional movies. Multiplexes have access to prime locations as a large number of mall developers are considering setting up movie theaters to attract footfalls in the mall. Multiplex operators are emerging as anchor tenants for malls and are therefore being offered attractive rental rates. The box office can offer a large variety of movies for their viewers typically, 7 movies can run simultaneously in a 4 screen multiplex. The options for booking are also varied from online, to mobile or agents. The signages that are available in cinemas today are Digital which give the manager the option of flexibility. projection too has improved with satellite delivery and digital projection. with all these changes the customer get a wide range of choice and improved quality in teams of picture, sound effects and comfort. The journey of multiplex in India was started in 1997 with inauguration of first multiplex Priya Village Roadshow (PVR) Saket in New Delhi. The largest Multiplex in India is the 11 screen multiplex by PVR at The Forum, Bangalore
Film Production, Distribution and Exhibition process
It starts with the big idea
Someone has an idea for a movie
Then an outline is created and use to promote interest in the idea.
A studio or independent investor decides to purchase rights to the film.
People are brought together to make the film. screenwriter, producer, director, cast, crew.
The film is completed and sent to the studio.
The studio makes a licensing agreement with a distribution company.
The distribution company determines how many copies or prints of the film to make.
The distribution company shows the movie screening to prospective buyers representing the theaters.
The buyers negotiate with the distribution company on which movies they wish to lease and the terms of the lease agreement.
The prints are sent to the theaters a few days before the opening day.
The theater shows the movie for a specified number of weeks called “The Engagement”.
I buy a ticket and watch the movie.
At the end of the engagement, the theater sends the print back to the distribution company and makes payment on the lease agreement
Drawbacks of traditional Film Distribution
A ‘prediction’ of how the film will fare determines the number of copies of the film to be made for distribution.
Too few or too many copies of the film causes ‘loss’ to the distributor.
The ‘process of transporting the film’ to the cinema and back is physical and laborious.
The prints get deteriorate as it gets used, this ‘reduces its quality’.
As it cannot be simultaneously screened in all cities there is scope for piracy.
Digital or 35mm Video
Dispatch center, control room
5a. Single Screen
5c. Digital Advertising
Advantages of Digital Cinema Ease in operations Reduced financial expenditure Simultaneous release of the movie in II and III tier towns as well as international Movie distribution has become much more simpler The process of delivering the film and later getting it back to take it back to another cinema hall is eliminated. Reduces chances of piracy as the films sent through the digital media can be encrypted and self destroyed. Advertising contents can also be sent and changed according to the film being screened. A niche target audience could be developed based on time or movie watched. Digital Cinema has revolutionised the entire cinema Industry. The way in which cinema is provided as well as consumed had undergone a drastic change. Films are now short using a digital camera, or if the producer still uses 35mm reel he sends it for digital conversation. This is then taken by the distributer of the film for encryption. Once this process is complete the film is digitally distributed through the satellite. This in-turn is received by the exhibitor and can be accessed by multiple theaters simultaneously. Thus digital cinema revolution is not just a change in the technology of the medium. It is a completely new system that will add a variety of experiences for the viewing customer. It will change the way theaters do Business, with the possibility of new revenue sources, new cost structures and new players. Cinema Process- the change 2 5b 1 5c 4 3 5a
Cinema advertising mainly comprises 30-second in-theatre advertising slots accounting for nearly 95 per cent. The remaining 5 per cent comprises activities in the lobby area such as new car or bike displays, etc. With cinema halls going digital this area gives you a lot of flexibility and opportunities. Of the overall advertising spend, currently only around 0.4 per cent around Rs 80 crore is spent on cinema Cinema Advertising
It's the rise of the optimistic Indian. With fatter pay packets, more disposable incomes and changing mindsets, the urban Indian is investing in fun and frolic much more these days. Leisure and entertainment has become an integral part of their lives. The upwardly mobile urban Indian are now indulging themselves in leisure activities throughout the week and this cuts across age groups, from 15 to 55, everyone is spending on leisure and entertainment. Cinema in India is one of the most preferred out of home activity in India. It is estimated that an audience as large as India's entire population flock to its cinema houses every two months. 16 million people watch movies on a regular basis while six million visit multiplexes regularly. Popularity of Cinema
The age group between 20-29 are the highest consumers of cinema today. The factors that influence them to consume cinema are their lifestyle, they are the newly emerging consumer classes in India which include the call center boomers and the IT folks. They have the time and not that much of responsibility. The rest are not able to consume cinema that easily because of the process involved and the time factor. Consumer Behaviour
15-19 yrs 20-29 yrs 30-39 yrs 40-49 yrs 50 + 12-14 yrs Along with parents Cartoon, kids movies Animated movies 3-4 times a yr Holiday Along with classmates or friends Teen flicks, latest release Twice a month Morning show Or Day of release Along with colleagues Or friends action Hindi latest release 1 week Weekends holidays Kids in school Students in college Young adult just working Adult working Adult going to retire Along with wife or kids English or Hindi Action or romance once in 2/3 months When they want to do something different Along with wife or friends Movie with good review 3 times a yr When a good move releases Adult retired Along with wife or children Great movie once a yr When an exceptionally Good movie releases No many movies Lack of finance At school Working No free time Not interested Difficult Consumer Behaviour
Consumer Mood Boards
Cinema Multiplex Digital Urban ‘ B’ towns Customer Cinema that is a mass media platform is now moving towards developing multiples and also digitizing the process this gives the opportunity to show simultaneous shows in urban as well as B towns in the country. What are the attributes of a rural customer? Technology has made it convenient to deliver cinema and advertising in cinema I gives flexibility for various permutations. Exhibitors + Distributors could penetrate more.
Movies Mobile Television CD, DVD Internet Cinema Theater Easy process Need to be ‘ Unique Enhanced experience CUSTOMER There is a need for an unique experience in cinema. Movies can be watched from various outlets of entertainment today. Many of these are convent to the customer and would be delivered into their homes. With mobile television this is further improved to providing it on the move. Why do people still visit the cinema. The process that is in place today needs to be eased in order to attract more people to the cinema. trouble node
Customer journey nodes Which movie With whom to watch and where Booking Options convince Node 1 Node 2 Node 3 Node 4 Node 5 PLAN BOOKING ENTRANCE MOVIE HALL SEAT Node 6 INTERVAL Node 7 EXIT What happens experience What happens How to find Other activities How to find What is done What happens These nodes are stages in a customers journey through the cinema. There are various activities that take place at every node the following pages will detail out the journey based on these stages.
Node 1 PLAN The plan to go for a movie can take place on two grounds the first would be when the person has come across various promotional material of the film and a want to watch the film is created. At this stage he plans out where he want to watch a move, with whom he would want to watch it. Café Bored Decides Ticket Booking Friends Multiplex to The second is a very impulsive decision usually when he has nothing to do. He comes across a motive and goes to watch the movie Would rather prefer Easy access Consumer Activities/ nodal understanding Advertising Review Radio Trailer Creates Interest Calls Friends Decides Ticket Booking
Consumer Activities/ nodal understanding Direct Box-office purchase: when a customer goes to the booking counter he would have to wait in a queue for a long time and would also need to get early so that he gets the ticket for the movie show he wants. In some cases he would have to come twice to make a booking and then later to watch the movie. Advantages most simplest, very physical Disadvantages Have to reach early, not easy to get a ticket especially on weekends, long queue Cinema Ticket Booking Agents: he would ideally deliver the tick to your door step. This is very convent for housewife's but if she has work before going to the movie then she would not find it convent as she need to leave the home and cannot wait for the tickets at home. Advantages very convent, do not require a credit card, delivers to your door steps Disadvantages Charges more to a already costly ticket. Online Booking: this is a very nice facility provide by the multiplexes but technical issues with the website do not let a smooth transaction. There is also the need for the credit card with is another drawback amongst Indians. Advantages Tickets can be purchased around the clock at minimal cost and with maximum convenience for your clients easy access, you do not have to go to the multiplex Disadvantages its not always easy to book. Website is not up and running at all times. Mobile Booking: Mobile tickets offer the customer a more convenient means of obtaining their cinema ticket as they no longer have to queue at the box office. Mobile tickets give the customer more time to spend at the mall but the application for the transaction is complicated and here too you would require a credit card. Advantages Mimimise time, on the move, anywhere anytime. Disadvantages Application is not very straight forward, you still need a credit card. Kiosk Booking: it is installed outside the multiplex and does not make much of an impact as you would still need to get to the multiplex to buy your ticket. The machine need a credit card and would serve as an alternative to people would use credit card at the box office fro transactions..
A customer who goes to the movies has a primary intentions to relax. He is eager to finish his transaction in the easiest way possible. If the process takes too much of an effort on his part he easily gives and would rather stay at home. If the intention of watching a movie is to meet up with friends he would rather go to a café. Thus there is a need to convert these cancellations into transactions. This can be done by easing the process of watching a movie at the cinema and thus enhancing the experience. Consumer Activities/ nodal understanding
Credit card use in India lowest in world Indians are still not sure of the plastic money. Indians spend just 1% of their total purchases through credit cards while the Koreans make one-fifth of their total purchases through credit cards. A lot of credit cards are issued in India but not 50% of them are used or functional. A study by the Indian Cards Council (ICC) revealed that the non performing assets in India's credit card business have mounted up to four times .the frequency of using the cards is less amongst the Indian customers .Meanwhile the study stated that there are a high number of inactive cards among the Indian issuers. There were only 56% active cards in India as compared to 80% and 75% in Australia and Singapore respectively. The RBI data also reveals that the credit card number has gone down to 25.51 million in February end. On a year-on-year basis, the card population fell by 5% or 1.36 million between February 2008 and 2009. Consumer Activities/ nodal understanding
Node 3 ENTRANCE While the security arrangements at the entrance to the multiplex are vital the staff needs to be well trained to address the customer. They are reluctant to leave their chocolates and the lighter worried that someone would fiddle with it What if they use it At the entrance their bags are checked and are asked to leave some things behind. Most people understand the need for security in such public space and are readily willing to leave it outside, but leaving their belongings just across a counter without any kind of wrapping is uncomfortable to most people, the attitude sent across by the multiplex personal at the security check is also not polite. They would rather feel secure it their good had a plastic cover or an envelop. Offering this to the customer will make him more comfortable and at ease. The experience will change form a bad on to good. They are at the entrance and one of they his carrying a Zippo lighter that he usually caries to office . What if they play and spoil it He does not want to leave it as he is scared because it is a expensive one and would be not handled well. When they reach the entrance they are told that they are too early to enter the premises. When they come back the father is asked to leave his lighter. You cant take this in. The tone in his voice is arrogant and annoying. Consumer Activities/ nodal understanding
Node 4 MOVIE HALL The entrance to the movie hall again calls for a wait time Its another 15minutes before the movie starts. Stands outside the movie hall, has time before the movie begins They have a lot of time before the movie starts. Talk and make fun. Get bored a bit. There is no interaction with the movie at anytime. Stands in front of the movie hall door waiting for it to open. Mindlessly watching the door. Just want to go in and relax. There is no interaction with the movie at anytime. There is no interaction with the movie at anytime. they find a place to sit and the kids play around. Although there is a digital signage don’t pay much attention as there is nothing different shown. They have already watched most of it on TV This space has a lot of opportunity for interaction with the customer and is an ideal advertising space if it is treated well. You could have interactive signages that would keep the customer entertained and engaged. Visual merchandising for the movie would also do well in this area and has a unique advantage as it would be the only space where you could advertise and have the product sold simultaneously. Consumer Activities/ nodal understanding
Node 5 SEATING Once the door is open a multiplex staff checks the tickets to make sure that they are punched and that the customer is entering into the right hall. You then enter the hall and there is another assistant who guide you in the direction of your seat. Today the multiplex seating arrangement is well planned out with light on every step to guide. The row numbers are also displayed in the same manner. The multiplex halls are different from traditional ones in the sense of its space we see a class variation in multiplexes ,the halls are much smaller and the differentiating factor minimum. There is a need to bring this differentiating factor as there is a price variation. The simplest solution to this would be to introduce a service such as providing the gold class with wet wipes, this can make a lot of difference. It also adds on as a feel good factor to the person who has paid a higher price. Once the door opens they enter inside Enter the movie hall After getting his ticket checked he enters in. They know where their seats are as they have seen it on the screen while book and regularly visit this multiplex. Get settled and are looking forward for the trailers Go inside and find their seats themselves as they had selected it while booking for the seat. Before the show starts one of them go to get some popcorn. The father leads the family and give the ticket to the assistant who directs them to the seat Makes sure everyone is comfortable and if they need anything. Come lets go its in front I have booked the Top middle seats Kid: But I know where it is. Consumer Activities/ nodal understanding
Node 6 INTERVAL Interval is the time where there is a break in-between the movie most people leave the movie hall to stretch and pick up some food to eat. So they got to the hall outside. People flock at the food counter and they usually is a queue. This is an ideal time to advertise. They also head out for a smoke and stand to talk. These are points where one can advertise or promote products. The opportunity areas are advertising, ideal time for merchandising movie products and for brand promotion. Light turn on They go and wait outside in the common area while two of them get the stuff. They go out stand in the queue and decide what they want. Thank God! I need to go to the rest room. Ok now who wants, what Lets all go out They discuss about the movie Light turn on How do you like it? Its nice, come lets go out If you want to stay I’ll get you something Intermission No, I am coming out too. Once they have their food they hang on a little longer and then go to their seats. What do you want? I’ll go out and get I also want to come with you I am staying with mummy, but I want a caramel popcorn Goes out for a smoke first the son stands in line and picks up the eatables. The mother and daughter watch the advertisements that are being played. Consumer Activities/ nodal understanding
Node 7 EXIT After the movie finishes we all leave through a common exit a long corridor where film posters are displayed. This is also a eventful phase where people discuss of the next movie they want to watch or details of what they think the movie is about. Although there is a lot attention to the posters at this node it is not being translated to an action. Light turn on They quickly get to the exit. There is a long corridor which have the upcoming movies As they exit they glance through the movie posters at the corridor. Cool movie. I am watching it for sure Again, anybody coming ok ok lets go fast I have to reach home They discuss about the next movie they have to watch the following week. Light turn on Nice movie I didn't find it that great Ok what's the plan now Shall we go grab a bit The end Yap, I am hungry too The corridor leads to the food court where they have decide to eat. Come lets go, did you like the movie Lets wait for the crowd to subside You hold papas hand and you be with me. Goes out for a smoke first the son stands in line and picks up the eatables. The mother and daughter watch the advertisements that are being played. ok Consumer Activities/ nodal understanding
Plan Booking Entrance Movie Hall Seat Interval Exit Planned impulse Interaction through promotion. Easy approach Box office Online Agent Mobile kiosk Ticket design Alternate to the already existing facilities. Deposit items Security Staff training envelop Waiting Enter the hall Digital Advertising Visual Merchandising Assistance to find seat Visual memory from the ticket counter En-power to find their seat Distinction between the class Food Rest room Advertising opportunities Brand promotion Poster corridor Food court Attention to these posters Interactive Customer journey mapping
Design is meant to make life simple and not complex. Today with the vast development in technology, most facilities provided to us need people to be technologically savvy ever to undertake a simple task such as buying a ticket The commoner, today who is not so tech savvy cannot use any of these facilities as they are complicated, but he is the person with money to spend. Most exhibitors have realized that the common man has the money to spend and want to tap this market but if they go with the same approach to this section as he would go to a software engineer, the exhibitor will not be able to tap the entire market. Thus the exhibitor needs to approach the Simple Man with a simple process. Ticket booking is one of the most important process and by far the most tedious one in the cinema going experience. This is the phase were the customer spends his money to get something entertainment. At this stage if the experience is not good the customer cant be enticed into buying the ticket. A lot of them would simply Quit out of impatience or irritation. Although most multiplexes used technology to improve the process of booking a ticket the process has not been simplified. There is a need for an alternate simple process for the common man. There is a large population of people who want to watch a movie but do not want to use high end technologies for a movie ticket. These people often try to book their ticket through online or mobile but if it does not work will give up soon. There is a need to convert this population to consumers. Anther area that can be worked out is creating an impulse buy. This will also bring in more customers to visit the cinema. Promotional offers can be used to lure them in. Another area that need attention is the waiting time before the customer is allowed to watch a movie. This area is ideal for advertising but should not be placed as just another television commercial. There needs to be a uniqueness to it where customers would find interest it should not be something that has already been shown to them on their television sets. Each time when a customer comes into the cinema theater there would be something new to greet them. If the customers could be entertained as well as engaged it would have a better impact. These cinema signages are dynamic but this feature has not been used to its maximum benefit. The dynamicity of the signage would allow for interaction with the customer. It is an ideal area for brand promotion and cinema promotions. The uniqueness of cinema advertising is also that it would provide with a platform where one could advertise as well as sell the product, and film merchandising has a very good scope in this country but unfortunately it has not been well promoted. Thus with multiplexes their common area could be utilized for such display.
Mobile ticket booking process: An alternative process is required to book a movie ticket which would be easy and simple to operate.
It would basically target at potential customers who would give up going for a movie because of the complications in the current process.
2. Ticket design: This would be unique to a specific multiplex and could be used to enhance its brand identity.
This would be targeted at gaining a customer loyalty through identifying with a particular brand.
Options: a loyalty card
Multiplex entry card
Membership card for unlimited viewing in a given multiplex.
Convert a passer-by into a customer: This would work on the concept of impulse purchase. As a customer walking through a supermarket would pick up a product due to promotion or because of its display, a movie ticket is here becomes a product and is picked up from a mall space. Here a need is being created for the movie.
This would target at window shopper.
4. Dynamic Digital Signage: Digtial signages although are named dynamic are not really executed to be dynamic.. Most advt on them are television advts. There is a need for a new format for cinema advt, just like in print a newspaper and hoarding have varied formats the same needs to be adopted to cinema advt. this would be targeted at making signages more interactive and entertaining to the customer who are waiting to see a movie.
5 . Visual merchandising inside the Multiplex: There is a huge business opportunity in merchandising products from a movie. A lot of producers have seen this opportunity and are cashing in on it, but they are not merchandising within the cinema space, they have tie-ups with various retail outlets to promote these products. A display unit at the multiplex would give an opportunity to sell immediately after advertising the product. This is an unique opportunity to sell an item after advertising the product. Only possible in multiplexes. 6. Interactive poster at the exit: the posters currently displayed while you exit the cinema hall are posters of upcoming movies. There is an interest created at this space but it does not translate to an interaction and is soon lost. This can be easily made interactive by embedding a barcode to the poster. the facilities that can be provided here cold be a reminder when the movie releases,, poster or trailers of the film exact date of the movie release or other opportunities even an opportunity to book a ticket.
Synthesis System chart Even the conept Digital Cinema Customer provider Techonology already exist in film production, distribution and exhibition. Enhanced through technology * booking * waiting To generate more business
There is a need to better the customers experience while watching a in the cinema hall. This can be achieved but trying to reduce the time that he has to spend in the process to watch a movie. The two main areas of hindrance are the booking process and the waiting time. These areas can be enhanced by streamlining the activities and providing with more entertainment which could also lead to more business. The other nodes too need slight tweaking so make the entire flow smooth. Bring in more customer to the cinema who would not come because they are unable to get the ticket Get customers to go to the cinema on a impulse visit.
Node space 1 Movie poster- with barcode Man with Camera phone Takes pic of poster barcode Gets connected to the multiplex IDs phone Sends back Request Examples of request movie trailer Promotional offers Reminders Posters Ringtone ticket Concept Development
Concept Development Node space 5 TV as a medium supports images and sound very well, radio on the other hand can only support sound. Cinema advertising as a medium although can support sound as well as image. The sound is too cluttered in its environment. 1 The digital signages that are already present in the cinema space need to attract attention and interact. This would keep the customers engaged and entertained Even when we are not focusing on a particular object its motion would influence us to take notice of it. This is the principle behind designing the system. The digital signages are intergraded together and function as a combined unit were the content would move from one screen to another The screens would further switch on and off as the content plays on them to attract additional attention. Customers would interact with the screens by capturing a moving caracter or other activities on such lines Advertising in cinema is an unique medium. Cinema halls are usually a bustling place where people are constantly talking and laughing. The exhibitor also plays some music in the background. With all this noise clutter it does not make much sense to add on more noise through advertising signages. In my observations I have also noticed that most advertisers have turned down the volume to these signages, so the effectiveness and attention capture of the signage is reduced . Like most of us skip advertisements in the TV, customer in cinema too skip past these signages. There needs to be a new approach to advertise through this wonderful media of digital signages and make it more effective as an advertising medium. How will it function? TV Image + Sound Radio + Sound Cinema Image +
Node space 5 The total Indian cinema merchandising market is estimated to be worth $180 million , of which the organised retail sector is a mere two per cent. While merchandising has always been available in Indian markets, most of it has been pirated. The purple sari that Madhuri Dixit wore in Hum Aapke Hain Kaun reportedly sold in excess of a million pieces in the grey market. Concept Development This structure need not be Permanent. They can be rented out For that season or a movie span Depending on the type of sale Eg: airport loungue Shop in shop Books Games Gift Food Appeal Poster collectables Multiplex Screen 1 Screen 2 Screen 3 Screen 4 Retail merchandising has great potential for revenue generation inside the multiplex and can be used as an alternate tool to generate revenue to the theater.