The Multiplex Association responded to Karan Johar’s comments, defending the dynamic ticket prices

Filmmaker Karan Johar Photo credit: Ravindra R

The Multiplex Association of India (MAI) on Wednesday defended the “dynamic and flexible” cinema prices, which fluctuate based on factors such as location, day of the week, seat type, film format and cinema format. Cinema exhibitors are now using sophisticated digital tools to stimulate audience demand and set prices, MAI said while issuing a statement on filmmaker Karan Johar’s recent comments.

Brushing aside comments by Karan Johar, who alleged high pricing tactics by movie exhibitors, the MAI statement quoted its president Kamal Gianchandani as saying that the average ticket price (ATP) across all cinemas in India was Rs 130 per ticket.

“The country’s largest cinema chain, PVRINOX, has reported an ATP of Rs 258 for FY 2023-24. Additionally, average per capita expenditure (SPH) on F&B at PVRINOX stood at Rs 132 during the period,” it said, adding that “it is one of the four The total brings the average expenditure for a family to Rs 1,560 – significantly different from the figure of Rs 10,000 in media reports.”

MAI represents 11 cinema chains like PVR-INOX, which operate about 75 percent of India’s multiplex industry. According to media reports, Karan Johar recently, while participating in a panel discussion, alleged that cinema exhibitors are responsible for high ticket and food and beverage (F&B) prices.

He said that family members said they don’t like to go to cinema halls as the average cost for a family of four, including tickets and popcorn etc., can be Rs 10,000, which is not in their financial plan.

MAI said cinema pricing is dynamic and flexible. Exhibitors often offer discounts and promotions that make cinema outings more affordable, not just during off-peak hours and even on popular days.

“Many of these initiatives can reduce the overall cost of watching movies by more than 50 percent, providing affordable options to families and moviegoers. All pricing structures are clearly listed both in theaters and online, ensuring transparency and choice for consumers,” it said.

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The MAI statement also said that the demand for a film is largely driven by its content and appeal rather than pricing alone. “Any assessment of value in the cinema industry must account for the wider economics of the film business, which involves multiple stakeholders, including producers, distributors and exhibitors,” it said.

Each of these players contributes to the consumer’s final cost, the price of which is ultimately determined by the market forces of demand and supply. “If lowering prices can optimize revenue for everyone involved, cinema operators will naturally make those adjustments without needing to be told,” it said.

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Moreover, cinema exhibitors are constantly experimenting with pricing models, gathering customer feedback and leveraging data analytics to refine their strategies. This ensures that current pricing is both competitive and fair in today’s market context.