FICCI Frames 2008: ‘Multiplexes: Multi-revenue streams’

Multiplexes have to be multi-purpose when it comes to revenue generation, this was how the session titled ‘Multiplexes: Multi-revenue streams’ can be summed up. Films are just one of the ways to earn revenues for a multiplex company. With the changing times and the radically changing nature of consumers, multiplexes have been forced to explore innovative ways to make more money.

The session moderated Shringar Films managing director and chief executive officer Shravan Shroff, had Inox chief operating officer Alok Tandon, Fun Multiplex chief executive Ajay Mehra, Pyramid Saimira managing director PS Saminathan, Dimple Cine Advertising managing director Kamal Karamchandani and Chivach Media chief executive Soumo Ganguly. The panel delved onto the state of the exhibition industry in the country, growth and economics of multiplexes with emerging multi-revenue streams.

Kicking off the session, Inox’s Tandon said, “though ticket sales are the most important revenue generation model, it is time that we start looking at increasing the average spend per person.” He went on to add that the multiplex culture has actually changed the revenue generation sources in a big way. While the sale of tickets was the only source of income in the past, today money pours in from multiple sources like box office collection, alternate content, food and beverages sale, on-screen advertising, display system kiosks, film distribution rights, product launch and promotion and out of box office ticket sales.

But at the same time, Tandon pointed out that “as many as 70 percent of the revenues of a multiplex come from ticket sales.” Given this, multiplexes have adopted several methods to streamline revenue generation models such as online, SMS or tele booking of tickets and reservations.

According to Tandon, every inch of space in a multiplex matters today. Marketers are not ready to leave any opportunity to catch their target group and so, experiential marketing, standees, LCD displays, elevator branding, floor graphics, on-screen rights, seat flaps, product displays and branding in restrooms are coming up in a large way.

“Live-shows are a new concept which until recently has not been fully exploited in this market,” said Dimple Cine’s Karamchandani. His agency recently brought in Sahara Filmy channel’s character Lallan to the multiplexes to market the channel.

What is significant is that multiplexes has actually got back the culture of cinema watching outside homes, said Fun Multiplex’s Mehra. He went onto add that “contrary to the past film is not an isolated activity today. It is a full-fledged outing and a total family activity. It also involves eating out. But when every multiplex is showing the same thing, the challenge is to create a differentiation that would bring viewers to you. It is the environment, ambience, hall experience that differentiate one hall from the other.”

Another important point was made by Pyramid Saimira’s Saminathan who said, “multiplexes should not limit themselves to the metros. We can also promote single-screen multiplexes.” He added that people today pull content and aren’t ready to be pushed. And that is the reason why the failure rates of films are as high as 93 percent. Chivach Media’s Ganguly concluded the session on a positive note saying that if a multiplex operator markets and backs a film, the film is bound to work.”