Multiplex And Single Screen Cinemas - India - Sample

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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 third tier cities. Favorable demographics in a cinema-crazy nation, tax exemptions, and quality locations such as malls, are driving growth of multiplexes in India.

The report provides a snapshot of the market including the two segments multiplexes and single screen cinemas. An overview gives a quick picture of the market with estimated market size, growth rate and theatre distribution 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, improving real estate supply, and favourable tax exemptions have help in growth of this sector while on the demand side favourable demographics, rising income levels and willingness of people to spend on entertainment are increasing footfalls. The key challenges identified include slowdown in economy, alternate modes of entertainment, development delays, piracy and uncertainty over entertainment tax exemptions.

The industry is characterized by seasonality, low screen density, increasing average ticket prices, and reducing shelf life of movies. The key trends identified include producers bypassing distributors, shift to digital cinema, and alternate content in multiplexes, retail partnerships, and new single screen formats. The competitive landscape identifies and compares the major multiplex operators in the market since they dominate an industry where single screen cinemas are highly fragmented. Comparison parameters include number of screens, number of cinemas, footfalls and occupancy ratio.

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Multiplex And Single Screen Cinemas - India - Sample

  1. 1. Multiplex and Single Screen Cinemas - India March 2009
  2. 2. Executive Summary Estimated to be worth INR XX bn in 2008 and INR YY bn in 2012 Market Key Segments: Single and double-screen cinemas and Multiplex cinemas Multiplex segment is growing while single screen segment is declining Southern Indian states together account for x% of the number of theatres in India Drivers: LE – Supply side: Growth in Film Industry , improving supply of real estate and favourable tax exemptions Drivers & – Demand side: Favourable demographics, rising income levels and willingness of people to spend on recreation Challenges P Challenges: Uncertainty over entertainment tax, slowdown in economy, alternate entertainment M avenues, development delays and piracy Characteristics & Trends SA Characteristics Seasonality Reducing shelf life of movies Trends Producers bypassing distributors Shift to digital cinema Low screen density Alternate content in multiplexes Increasing average ticket prices Retail partnerships New format in single screen theatre • Single screen segment : Highly fragmented and unorganized • Multiplex segment : Dominated by five organized players Competition • Major players in Multiplex segment: Company X, Company Y and Company Z • Fierce competition in multiplex segment MULTIPLEX AND SINGE SCREEN CINEMAS – INDIA.PPT 2
  3. 3. •Market Overview •Business Model •Drivers & Challenges •Characteristics & Trends •Competition •Key Developments MULTIPLEX AND SINGE SCREEN CINEMAS – INDIA.PPT 3
  4. 4. Cinema exhibition comprises of single-screen and multiplex theatres, with the latter growing rapidly Overview Market size & growth • Key Segments INR bn Single and double-screen cinemas 150 +a% +c% Multiplex cinemas, i.e. three screens or more Z 100 +b% • Multiplexes account for: Y LE X x% of the total number of cinema halls 50 P y% of total cinema screens in the country • South Indian states together account for x% of the 0 number of theatres in India Theatre distribution SAM 2006 Growth of Multiplexes 2008 2012 Others Andhra Pradesh Screens t% u% 1,500 +a% +c% Z 1,000 +b% Y Uttar Pradesh z% v% Tamil Nadu X y% 500 Maharashtra x% w% Karnataka Kerala 0 2006 2008 2012 Source: MULTIPLEX AND SINGE SCREEN CINEMAS – INDIA.PPT 4
  5. 5. Ticket and F&B sales contribute to bulk of revenues Primary Revenue Primary Costs Ticket Sales x% Distributor’s Share x% F&B Sales y% F&B Cost y% Advertising Revenue z% Entertainment Tax z% Exhibitor Secondary Revenue Secondary Costs Parking Charges x% Rent / Rev Share x% Management Fee y% Overheads y% Convenience Fee z% Personnel Cost z% Ticket w% Advertising Others x% y% z% PLE Distributor F&B v% w% Taxes x% Rent y% Others z% F&B Parking v% SAM Source: MULTIPLEX AND SINGE SCREEN CINEMAS – INDIA.PPT 5
  6. 6. Drivers Favorable Willingness of people Rising Income levels Demographics to spend on recreation Demand Side Drivers Supply Side Growth in Improving supply of Tax Exemptions Film Industry Real Estate MULTIPLEX AND SINGE SCREEN CINEMAS – INDIA.PPT 6
  7. 7. Challenges Slow down in economy Uncertainty over Alternative entertainment modes of tax entertainment Challenges Development Piracy delays MULTIPLEX AND SINGE SCREEN CINEMAS – INDIA.PPT 7
  8. 8. Key Trends Producers bypassing distributors Shift to Digital Cinema Alternate content in multiplexes Trends Retail partnerships New format in single screen theatre Source: MULTIPLEX AND SINGE SCREEN CINEMAS – INDIA.PPT 8
  9. 9. Single screen segment is unorganized while multiplex segment is highly organized and dominated by five players Competition Number of screens multiplexes •Single screen segment is highly fragmented 200 Number of Cinemas Y with few owning more than one movie hall Number of Screens 150 •Five players dominate the multiplex industry Y •Box office revenue breakup in multiplexes: Y LE 100 Y X x% from Hollywood movies Y P 50 Over y% from local Hindi language movies X X X X M •Occupancy levels 0 A Multiplexes : x-y% Company Company Company Company Company S x Y z V W Single screen cinemas : a-b% Footfalls and Occupancy ratio •Fierce competition in multiplex segment due Occupancy to attractive economics and growth potential mn % Footfalls (mn) Leading players have major expansion plans 20 U c% 50 Many new players are planning to enter this b% 40 15 W d% industry a% 30 10 V X 20 5 10 0 0 Company X Company Y Company Z Company V Source: MULTIPLEX AND SINGE SCREEN CINEMAS – INDIA.PPT 9
  10. 10. Thank you for the attention The Single Screen and Multiplex report is a part of Research on India’s Media and Entertainment Industry Series. For more detailed information or customized research requirements please contact: Gagan Uppal Gaurav Kumar Phone: +91 22 4098 7530 Phone: +91 33 4064 6214 E-Mail: gagan.uppal@netscribes.com E-Mail: gaurav.kumar@netscribes.com Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. MULTIPLEX AND SINGE SCREEN CINEMAS – INDIA.PPT 10

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