The document analyzes the cinema exhibition market in India, which comprises single screen and multiplex theaters. It estimates the market was worth INR XX billion in 2008 and is projected to reach INR YY billion in 2012. While the multiplex segment is growing, the single screen segment is declining. The multiplex segment is dominated by five major players and accounts for a growing share of screens and revenues. Key drivers of growth include rising incomes and willingness to spend on entertainment, while challenges include uncertainty over taxes and the rise of alternative entertainment options.

1. Multiplex and Single Screen Cinemas - India
March 2009

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 SINGLE SCREEN CINEMAS - INDIA.PPT 2

3. •Market Overview
•Business Model
•Drivers & Challenges
•Characteristics & Trends
•Competition
•Key Developments
MULTIPLEX AND SINGLE SCREEN CINEMAS - INDIA.PPT 3

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 SINGLE SCREEN CINEMAS - INDIA.PPT 4

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 SINGLE SCREEN CINEMAS - INDIA.PPT 5

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 SINGLE SCREEN CINEMAS - INDIA.PPT 6

7. Challenges
Slow down in
economy
Uncertainty over Alternative
entertainment modes of
tax entertainment
Challenges
Development
Piracy
delays
MULTIPLEX AND SINGLE SCREEN CINEMAS - INDIA.PPT 7

8. Key Trends
Producers bypassing distributors
Shift to Digital Cinema
Alternate content in multiplexes
Trends
Retail partnerships
New format in single screen theatre
Source:
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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:
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10. Thank you for the attention
The Single Screen and Multiplex report is a part of Netscribes’ Entertainment Industry Series.
For more detailed information or customized research requirements please contact:
Natasha Mehta, CFA Subhash Chennuri
Phone: +65 9651 6382 Phone: +91 98190 59664
E-Mail: natasham@netscribes.com E-Mail: subhashr@netscribes.com
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