Multiplexes plan distribution foray for survival

If the recent move of the state government to rationalise the prices of multiplex tickets goes through, it is quite likely that some of the multiplexes would have to lower the prices.

But the conditions are not conducive for taking such a step. Already, says Atul Goel, chief operating officer, Fun Cinemas, the model is such that nobody can sustain in this business at lower prices, which is why, despite increased competition no one is lowering ticket prices.

"The competition is not about prices but about the service and value offered to consumers," he feels.

While different multiplexes are slugging it out by providing various value-added services such as free home delivery of tickets or special promotions, Goel feels, eventually it is going to be important to have a stake in other parts of the business such as distribution as well, which will finally determine who survives as the market is not growing fast enough to justify the increase in the number of screens across the country. Fun Cinemas at present distributes only English films which are relatively lower risk proposition.

Goel is not the only one who thinks along these lines. Last month, Inox announced that it was foraying into film distribution in the Bengal, Mysore and Rajasthan territories. Manoj Bhatia, chief operating officer, Inox Leisure, said that it's a logical progression as distribution is an integral part of the value chain and is required for further growth.

"It is a high risk business but we can leverage our strengths as exhibitors," he admits.

Shravan Shroff, managing director, Shringar Cinemas, who was among the earliest to foray into distribution, feels that it has an added advantage not only in terms of making the product easily accessible but also from the marketing point of view.

Apart from Hindi and regional language films, Shringar has a collaboration with Paramount Films to distribute their films in the country. "We are looking at niche products, regional products and mainstream Hindi movies on reasonable terms," says Shroff on their future plans.

What remains to be seen now is just how successful the newer players are on this side of the business.