Expensive tickets are not really a deal-breaker for Indian film lovers, as evidenced by the success of several premium priced tent-poling films, despite recent criticism that such prices have eroded cinema attendance.
Attractiveness and enthusiasm for so-called event films – large-format films eagerly awaited by audiences – such as Pathaan and Brahmastra have remained unaffected, according to a recent report by media consultancy Ormax, despite ticket prices €350 and more even in medium sized cinemas. In the case of mid-range films, a minimal increase in ticket prices reduces admissions by 10%, and further increases result in a further reduction, the report says, proving studio theory that premium pricing is first for high-budget Prizes work the highly anticipated titles.
According to Ormax, movie ticket prices cannot follow a one-size-fits-all approach. “It is evident that what may be too ‘high’ for a mid-range film is not high at all for a major entertainer like Pathaan,” the report said, adding that the appeal of an event film increases a ticket price of €375 is the same as normal film €50. A mid-range film loses maximum demand €50 to €100 but is largely static in attraction, falling at an odd point along the way from here and there €100 to €400. The drop in demand when the ticket price goes into double digits is the proportion of around 10% of viewers who would rather skip such films unless they can be viewed at throwaway prices, the report added.
“There is a category of blockbuster films for which studios and exhibitors mutually agree to set a higher price based on pre-release tracking and the buzz generated by promotions,” said Rajendar Singh Jyala, Chief Programming Officer at Inox Leisure Ltd Jyala named Southern dramas RRR and KGF: Chapter 2, Hindi films Pathaan and Brahmastra, and Hollywood hits like Avatar and Doctor Strange in the Multiverse of Madness are examples of films that have seen higher prices have paid off a few months in the past.
Multiplex chains also practice different pricing based on theater ownership, the ability of the population to pay, daily and show timing, and the size of the film, he said.
“For really big films like Pathaan, we can’t afford regular prices because the film might not recoup its investment,” stressed Jyala.
Producers are aware of the short run most films have in theaters and want to make the most of the time, said film producer, trade and exhibitions expert Girish Johar. “That’s why they try to go all out with premium pricing from the start,” Johar said. He added that alongside mainstream commercial entertainers, even niche films like the American psychological drama The Whale or other critically acclaimed foreign films with limited releases in the country’s major cities can benefit from premium pricing as there is a small but loyal audience for She gives.
Inox’s Jyala agreed that content must have appeal first, saying there is no question of high prices without thinking. “For certain films, even if the tickets are cheap €100 or less, the audience might not come in,” he said.
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