Multiplexes with diverse offerings elevate entertainment experiences: Gautam Dutta PVR INOX Co-CEO

To begin with, I would like to suggest that it may be called an “OTT emergence” rather than “OTT invasion”. What happened during COVID was an aberration which is well behind us. Footfall grew by 6% in 2023 as compared to 2022, but were marginally below the pre-pandemic levels of 2019. However, Q2 FY’24 was the best every quarter of all time for PVR INOX and industry in terms of Admissions on account of record-breaking performance of the Hindi box office, 'Jawan' and 'Gadar 2', ‘Oppenheimer' and 'Mission Impossible: Dead Reckoning Part 1' in Hollywood and Regional successes of 'Jailer (Tamil),' 'Baipan Bhari Deva (Marathi)' and 'Carry on Jatta 3 (Punjabi)'.They were complemented by solid performance of mid budget movies, with ‘Rocky aur Rani ki Prem Kahani’, ‘Oh my God 2’, ‘Dream Girl 2’ and ‘Fukrey 3.

2. Why should people watch movie in theatres when they could do the same for free in the confines of their homes?

For us Indians, cinemas are part of our cultural fabric, as this experience is far more emotive, experiential, wholesome, communal and distinct, and serves long-format larger than life content, which is best enjoyed on the giant screen.

Besides the giant screens, and the thunderous sound, the cinema experience offers a unique atmosphere characterized by the auditorium’s darkness, unfamiliarity with the co-audience, yet a unified sense of awe and appreciation for the content playing on the screen. It goes beyond the reel, emphasizing the joy that is truly experienced when we watch a film together.

There’s also a distinct difference in the kind of content being consumed at home on the OTT platforms and that on cinemas. There’s also a difference in the manner of consumption, and even the occasion of consumption. Both are driven by distinct consumer-behavior patterns

3. How is the film industry performing overall after the pandemic?

2023 is the first-ever year when the gross box office in India crossed the Rs 12,000 Cr mark, surpassing the previous best year 2019 (Rs 10,948 Cr) witnessing a healthy 15% growth over 2022. Hindi cinema also saw its best-ever year, with a gross box office of Rs 5,380 Cr, crossing the Rs 5,000 Cr mark for the first time putting to rest any apprehension on the volatility of Hindi movies. What is also heartening is that screen additions have been happening at a steady pace due to expansion of malls in Tier 1, 2, and 3 cities facilitating the growth of multiplexes across various regions, despite the pandemic.

On the content front, post-pandemic, there has been a growing trend of big-budget event films dominating the box office and achieving box office numbers that are a lot bigger than the pre-covid numbers. Importantly, the recent successes of small and mid-scale films suggest that this is not a long term trend, and niche content is still in demand, and there is no major shift in movie-watching habits. Audiences have continued to stay interested in watching quality content at cinemas, regardless of the film's scale.

4. How has the in-cinema advertising evolved in terms of format. Are Ads customised for theatres?

As we reflect on the exhilarating journey of PVR INOX throughout 2023, the resounding success of blockbuster movies has been the driving force for the advertising business. The stellar performance in H1FY24, was underlined by a commendable 17% increase in advertising revenue on a year-to-year basis.Our relentless pursuit of recovery is evident in the gradual improvement that we are witnessing, not only from a revenue viewpoint, but also in the addition of new advertisers to our fold. In the realm of cinema advertising, we are happy to announce that we are nearly at par with pre-pandemic levels, poised for further growth backed by a stellar line-up, leading to larger inclusion of cinema in the media plans. We feel proud to have executed some truly fascinating campaigns in 2023, which were not only effective, but also experiential.

The extensive support from diverse categories such as FMCG, telecom, e-commerce, ed-tech, BFSI, consumer durables, automobiles, apparel, accessories, jewellery, media entertainment, real estate, and more has been instrumental. We are privileged to partner with renowned brands like Apple, Oppo, Cred, OnePlus, Facebook, WhatsApp, Pepsico, Coke, Dyson, Manyavar, Kotak, Pepsi, Tata CliQ, Dettol, HDFC, Nippon, WOW, and others. As we step into 2024, our content pipeline presents a compelling opportunity to revive advertiser interest and foster brand partnerships and retail opportunities. The quarter is adorned with a robust content line-up, which includes movies such as Merry Christmas, Fighter, The Beekeeper, HanuMan, Captain Miller, Laal Salaam, Ayalaan, Maidaan, Madame Web, Bob Marley: One Love, Dune: Part 2, The Color Purple, Arthur The King, and Ghostbusters: Frozen Empire. Looking ahead, the expansion of our multiplexes is a testament to our commitment to deepening our footprint, particularly in tier 2 and tier 3 cities, and thereby offering a more meaningful reach to our advertisers.

5. Does the ticket pricing vary from city to city?

Yes, ticket prices vary from city to city and even within a city ticket prices very from a cinema location to another cinema location. While determining the ticket prices we keep in mind the paying propensity of the catchment and also the hip and anticipation around the content.

6. What trends have you noticed in audience behaviour?

The pandemic resulted in an easy access to abundant content available on digital platforms, encouraging viewers to explore a wider range of genres and languages. Movie audiences have become more language agnostic, leading to an increase in the production and promotion of pan-Indian films with dubbed versions and subtitles which are making a significant impact on a PAN India scale.

A thriving economy, complemented by rising per capita income is leading people to seek enhanced out-of-home leisure activities and multiplexes with their diverse offerings, become an attractive destination for individuals to elevate their entertainment experiences. PVR INOX is looking at increasing the current 14% share of premium formats to 20% in the years to come. These include IMAX, 4DX, ScreenX, Director’ Cut, ICE, Insignia, MX4D, Onyx, LUXE or last row recliners that are perceived as aspirational. Multiplexes are experiencing a notable rise in the consumption and spending on food and beverages.

Another interesting consumer trend is emerging on the F&B front. PVR INOX F&B revenues in FY’23 was INR 1,618 crores making it the country’s 5th largest QSR brand. The Spend per Head in FY’23 grew to INR 128 from INR 124 in the previous year. This is attributed to the introduction of fresh concepts and appealing offerings on the menu, underscoring that consumers view movie-going as a comprehensive entertainment experience that includes food and beverages.

7. Tell us about Passport 2.0

Passport is our monthly cinema subscription service, which allows movie goers to obtain 4 movie tickets at an extremely affordable cost of Rs 349.

This iteration of Passport, which is now available across the country, including the South Indian states, is even more user-friendly and is loaded with exciting new features and fewer conditions. Commencing from 18th March, subscribers will have access to watching movies at an affordable price. Subscribers also have the option to purchase and redeem tickets for someone else through Passport. Movie lovers can acquire their PVR INOX Passport 2.0 on the PVR & INOX app or website and through PayTM. Subscribers will also have an option of buying a 3-month subscription by paying a total of Rs 1047 upfront, which will offer them food vouchers worth Rs 350. With just 50,000 PVR INOX Passports up for grabs this time, movie buffs better hurry to secure theirs for the ultimate cinematic journey, as bookings will remain open only for 3 weeks.

8. What's the market share of South India in PVR Passport?

More than half of the subscriptions of Passport have come from South Indian markets.

9. What are your future plans to make the brand more visible?

As a brand which entertains more than 120 mn consumers annually, we have to make sure that we remain innovative, in order to maintain a high level of awareness in the minds of our consumer base, which is practically the entire country, as India is extremely passionate about movies. We therefore keep rolling out innovative products, propositions, experiences and offers, which help us in achieving the same.

We launched the World’s first 30-minute Trailer Screening Show at just Re 1 featuring handpicked trailers of the upcoming Bollywood, Hollywood, and regional movies. Considering trailers are the best parts of the movie summarized, we want movie buffs to get the real feel of the upcoming movies with at the theatres.

The Fresh Dekho, Bada Dekho campaign comprising of 5 humorous videos nudges movie lovers to enjoy films when fresh, on the big cinema screens instead of waiting for the movie to release on the smaller screens and therefore miss the exciting conversations, the hype, and the fun surrounding the film.

We launched PVR INOX Passport, India’s First Cinema Subscription Program where subscribers could watch up to 10 movies per month for just Rs. 699, Mondays to Thursdays. The Pilot Launch with 20,000 passports was sold out within a week of launch.

Cinemas are evolving into social hubs for communal engagement. In recognition of this trend, PVR and INOX have broadcasted live events of national significance, including the inauguration of the Ram Mandir and Republic Day celebrations, to reach a wide audience. Additionally, they showcased the live celebration of Mahashivratri, one of the major sacred festivals, directly from the Isha Yoga Center in Coimbatore.