The Karnataka government, in its state budget due on March 18, is all set to propose capping the maximum price of a movie ticket at Rs 120. So, the next time you go to watch an upcoming flick, chances are you would not end up shelling out Rs 300, or even more on weekends sometimes, to watch your favourite movie.
The Karnataka state government is likely to follow Tamil Nadu's model of pricing movie tickets in the state, following recommendations of a committee, Bangalore Mirror reports. However, at the same time, a minimum price of Rs 100 per ticket has also been reportedly recommended by the committee.
Surprisingly, on the business front, this move by the state government is likely to generate additional revenues for the multiplex owners and keep the box office busy even in otherwise lean times, so feel industry watchers.
"A cap on ticket prices will see increase in footfalls. Even a new filmmaker will stand a chance. There will be new blood in the system and one will see people shifting from single screens. It is also good for the producers as they will see incremental sale because of lower ticket prices," marketing consultant Prashant Sambargi was quoted as saying by the publication.
Across 130 screens, Bengaluru has about 24,800 multiplex seats and the average ticket price for a movie in the city is roughly Rs 250. The IT city has the highest average price in multiplexes in South India. On weekends, prices of tickets go up to Rs 600 to Rs 700. All across the city's cinema theatres, Hindi films draw highest price per ticket between Rs 280 to Rs 350.
At present, the occupancy percentage across multiplexes in Bangalore accounts for between 38 percent to 50 percent.
Multiplex PVR's second quarter numbers for the current fiscal showed high growth on a year-on-year basis. While revenues grew by 21% to Rs 481 crore, net profit soared 405% to Rs 41 crore, up from Rs 8.2 crore in the period between July-September 2014.
PVR stock closed at Rs 706.80, down 0.81 percent from its previous close, whereas Inox Leisure Ltd stock closed at Rs 210.00, up 0.91 percent from its previous close.