MAI responds to Karan Johar's 'expensive popcorn' comment

The Multiplex Association of India has responded to filmmaker Karan Johars recent statement thatfamilies in India do not wish to watch movies at a cinema hall due to the inflated prices of food options available thereIn an interview with The Hollywood Reporter India Karan said that the audience would rather spend at a restaurant than watch a movie in theatresKaran Johars concern on expensive food at multiplexesHe explained They went to 100 homes and out of those 100 homes 90 said they would watch only two films a year in theatres This is of an income group that is a massive part of our audience base They canrsquot afford it They may come out on Diwali or if they hear about a film like Stree 2He added ldquoFamily members said that they donrsquot like to go to cinema halls because when kids say that they want popcorn or something to eat they feel bad denying them So they would rather go to a restaurant where theyrsquore not paying for the ticket theyrsquore paying only for the food They said lsquoOur child will point and say he wants caramel popcorn but we canrsquot afford itrsquo Because the average cost for a family of four can be Rs 10000 And maybe those Rs 10000 are not in their economic planning at allIn response Kamal Gianchandani President Multiplex Association of India and CEO of PVR Pictures Limited amp PVR Limited issued a statement to address the concerns raised on their pricing strategies and the overall cinema experienceMultiplex Association of Indias statement on cinema ticket pricingWhile we normally prefer to handle matters involving producers and distributors through direct communication with the relevant parties we find ourselves in a situation where it is important to share our perspective with a broader audience Recently some media reports surfaced highlighting concerns about the impact of high prices on cinema visitation In the same context the reports carried Mr Karan Joharrsquos comments suggesting that cinema exhibitors are responsible for high ticket and food amp beverage FampB prices We believe it is essential to provide a more balanced view on this matterFirstly letrsquos address the numbers In 2023 the Average Ticket Price ATP across all cinemas in India was Rs 130 per ticket The countryrsquos largest cinema chain PVRINOX reported an ATP of Rs 258 for the fiscal year 202324 Additionally the Average Spend Per Head SPH on FampB at PVRINOX during this period stood at Rs 132 This brings the total average expenditure for a family of four to Rs 1560 mdashsignificantly different from the Rs 10000 figure carried in the media reportsIt is also essential to highlight that cinema pricing is dynamic and flexible Prices fluctuate based on factors like location day of the week seat type film format and cinema format Exhibitors utilize sophisticated digital tools to stimulate audience demand and optimize pricing frequently offering discounts and promotions that make cinema outings more affordable not just during offpeak times but even on popular days Many of these initiatives can lower the overall cost of a cinema visit by more than 5037 providing families and moviegoers with affordable options All pricing structures are clearly listed both at cinemas and online ensuring transparency and choice for customersMore than anything else itrsquos a wellrecognised fact that the demand for a film is largely driven by its content and appeal rather than by pricing alone Any evaluation of pricing in the cinema industry must account for the broader economics of movie business which involves multiple stakeholders including producers distributors and exhibitors Each of these players contributes to the final cost to consumers with prices ultimately shaped by the market forces of demand and supply If lowering prices could optimize revenue for everyone involved cinema operators would naturally make those adjustments without needing to be toldAdditionally unavoidable factors such as inflation play a role and India has historically experienced high inflation rates Nevertheless cinema exhibitors continuously experiment with pricing models collecting customer feedback and leveraging data analytics to refine their strategies This ensures that the current pricing is both competitive and fair in the context of todayrsquos marketAt the heart of it all our industry remains committed to delivering a diverse highquality and accessible entertainment experience for all moviegoers We believe itrsquos crucial to consider the full picture before drawing conclusions about pricing as itrsquos a complex issue involving many moving parts The goal remains the same to provide audiences with the best possible experience at a fair value