With multiplexes becoming the new face of the entertainment industry, it becomes important for theatre owners to find ways to distinguish themselves in a product-driven, competitive industry where they themselves have no control over the product.
This and other issues like how tax benefits on being withdrawn would affect margins and whether India is ready for digital cinema were discussed on day two of the India Retail Forum.
Today, almost all multiplexes are based on the ownership model. According to Ajay Bijli, managing director, PVR, it is important for a brand to establish itself first and only then look at the franchisee model, a view that was largely supported by attendees.
One area of concern discussed is that operating margins for multiplex owners, mainly in Maharashtra, would be hit once the tax benefits they currently enjoy would be taken back.
Pooja Shetty, director, Adlabs Multiplex, called for some sort of unified tax structure across the country, which would then make it viable for theatre owners.
According to Bijli, it is tougher to attract the audience to a single-screen cinema as most of them are not equipped with the latest technology. Also since they have a larger number of screens, it becomes even tougher to fill them up.
Another view, however, befits smaller cities. It is worth investing Rs 50-60 lakh required to refurbish a single-screen theatre in such cities where centres are still not even ready to have a multiplex.
But doing this would start bringing the audience back to cinemas.
The link between malls and multiplexes, two formats that have come up almost simultaneously, was also discussed. There was consensus on the fact that there is a spillover of customers from one segment into the other when located in the same premise.