Overview of multiplex industry

1. MULTIPLEX INDUSTRY OVERVIEW
BY
RUPESH SURADKAR
SAGAR CHEDA
SUKHWINDER KAUR
KUHU PATHAK
GEETIKA MAHAJAN

2. MULTIPLEX INDUSTRY OVERVIEW
CINEMA INDUSTRY
MARKET
• NET WORTH 13800 CRORES
• KEY SEGMENTS – SINGLE AND DOUBLE SCREEN CINEMAS AND MULTIPLEX
• MULTIPLEX SEGMENT IS GROWING AND SINGLE SCREEN SEGMENT IS
DECLINING
• 1000 MOVIES CHURNED OUT EVERY YEAR
• 3 BILLION TICKETS SOLD A YEAR

3. DRIVERS & CHALLENGES
• SUPPLY SIDE – GROWTH IN THE FILM INDUSTRY , IMPROVING
SUPPLY OF REAL ESTATE AND FAVOURABLE TAX EXEMPTIONS
• DEMAND SIDE
- FAVOURABLE DEMOGRAPHICS , RISING
INCOME LEVELS AND WILLINGNESS OF PEOPLE TO SPEND ON
RECREATION
• CHALLENGES – UNCERTAINITY OVER ENTERTAINMENT
TAX, SLOW DOWN IN ECONOMY, ALTERNATE ENTERTAINMENT
AVENUES, DEVELOPMENT DELAYS AND PRIVACY

4. CHARACTERSTIC & TRENDS
CHARACTERSTIC
• SEASONALITY
• REDUCING SHELL
LIFE OF MOVIES
• LOW SCREEN
DENSITY
• INCREASING
AVERAGE TICKET
PRICE
TRENDS
• PRODUCER BYPASSING
DISTRIBUTERS
• SHIFT TO DIGITAL
CINEMA
• ALTERNATE CONTENT
IN MULTIPLEX
• RETAIL PARTNERSHIPS
• NEW FORMAT IN SINGLE
SCREEN THEATER

5. COMPETITIONS
• MULTIPLEX SEGMENT DOMINATED BY
FIVE ORGANISED PLAYERS
• MAJOR PLAYERS LIKE PVR, CINEMAX,
INOX, ADLABS AND FAME
• FIERCE COMPETITION

6. SWOT ANALYSIS
STRENGTH
• MULTIPLEX INDUSTRY IS ONE OF THE
BOOMING SECTORS OF INDIA
• SECOND LARGEST IN THE WORLD AND
LARGEST IN TERMS OF FILMS PRODUCED
AND TICKETS SOLD.
• THE GROWING MIDDLE CLASS WITH
HIGHER DISPOSABLE INCOME
• CHANGE IN THE LIFESTYLE AND
SPENDING PATTERNS OF THE INDIAN
MASSES
• TECHNOLOGICAL INNOVATIONS

7. WEAKNESS
• BUSINESS FORTUNES DEPENDS ON THE
SUCCESS OF THE FILMS THEY ARE
SHOWING
• RAPID DEVELOPMENT OF DIGITAL
TECHNOLOGY LIKE BROADBAND AND
NETWORKING SPACE
• PIRACY
• EXISTING COMPETITION

8. OPPORTUNITY
•
•
•
INCREASING NO OF GLOBAL INVESTORS IN THIS
SECTOR
TECHNOLOGICAL INNOVATIONS LIKE
ANIMATIONS
RISE IN THE VIEWERSHIP
THREAT
• PRIVACY
• ALTERNATIVE SOURCE OF ENTERTAINMENT
SUCH AS DTH, DVD CAN LEAD TO LOWER SALES
• INCREASING COMPETITION WITH OTHER
ENTERTAINMENT SECTOR LIKE IPL AFFECTS THE
OCCUPANCY RATE IN THEATER

9. PORTER FIVE MODEL ANALYSIS
Bargaining
power of
Supplier
Threats of New
Entrants
Competitive
rivalry in
Industry
Bargaining
power of
customers
Threats of
Substitutes

10. PEST ANALYSIS
Political Analysis
• Politically less sensitive area
• Barriers in FDI
• No clarity in terms of Govt. policy which is
ambiguous in many places creating a big
disconnect between the Govt. policies,
infrastructure and planning.
Economical analysis
• The economic slowdown has great impact on the
pockets of the customers
• Economic slowdown is creating tough environment
• First mover advantage creates barrier for new entrants

11. PEST ANALYSIS
Socio- Cultural Analyis
• It is very difficult to understand the preference of Hindi speaking masses
which might be different from other classes like the English speaking class
• The fact that Hindi speaking segment reach is more than
10 times the English segment reach but there is still a huge gap
as the English segment get 70% revenue as compared to Hindi segment.
Technological Analysis
• The effect of IT industry is endless creating ever changing possibilities
• Rapid innovations in the technological sector

12. PENETRATION OF MULTIPLEX

13. SERVICES PROVIDED
MULTIPLEX PROVIDES THE
USERS
• ENTERTAINMENT
RELETED
INFORMATION
• PRICING
• AVAILIBILITY
• RESERVATION FOR ITS
TICKETS
THEATER ENVIORNMENT
• AUDITORIUM SEATING
• RESTROOMS
• PARKING AREAS
FILM PRESENTATION
• SOUND QUALITY
• PICTURE QUALITY
• VOLUME
FOOD SERVICES
• CLEANLINESS OF SNACK
BAR
• SELECTION OF
CONCESSIONS
• TASTE/TEMP OF FOOS
ITEMS
PERSONNEL
• TICKET CASHIER
• SNACK BAR ATTENDENT
• HANDLING OF
PROBLEMS

14. HISTORY OF INDIAN CINEMA
Roadside Romeo
Sheila theater
PVR
First 70mm
Theater,Delhi
First modern
multiplex Delhi
First Indian
3Danimations by YRF
and Walt Disney
1961
Raja
harishchandra
1997
2008
First Indian movie
1913
1931
1974
1998
Alam Ara
First Indian
sound
Ek Anek Aur Anek
Chota Chetan
First Indian
3D
Animation Movie on
DD For Edu purpose

15. • Thank you