In-theatre ads on UFO radar

United Film Organisers (UFO) Moviez, the digital cinema venture of UFO India Limited Digital Cinema System and a part of the Rs 3,000-crore Apollo Group, is eyeing in-theatre digital advertising as a new revenue stream.

"We are waiting to install the digital cinema technology in 1,000 theatres across the country after which we will look at digital advertising inside cinema halls as our next revenue earning stream. We are in talks with close to 30 corporate houses, who are interested in digital advertising inside cinema halls," said Raaja Kanwar, vice-chairman, UFO Moviez.

There are about 500 cinema halls across West Bengal, out of which only 50-60 are 'A' grade theatres. The rest receive movie prints a week later. The technology can give these cinema halls a fresh lease of life.

Digital advertising is not only expected to help advertisers save on costs but also reach target audiences in target locations. The new technology will also help companies save on reel expenditure as display will be digitally manned.

Most advertisers spend close to Rs 6,000 a reel, which is expected to become obsolete once advertisers opt for the digital medium. Digital advertising will also help advertisers know exactly when and for how long their advertisement is being aired inside a cinema hall.

"Advertiser's cost for in-theatre advertising will remain the same even if they opt for the digital mode. But they will save on the physical medium, such as the cost per reel," claimed Kanwar.

At present, advertisers are charged close to Rs 667 for advertising in 'A' category movie theatres for 10 seconds for 28 shows a week. The 'B' and 'C' category cinema halls charge Rs 417 and Rs 250, respectively, for a 10-second commercial for 28 shows a week.

So far, UFO Moviez has digitised 650 theatre screens in India and plans to touch 1,200 theatres by end-2007 and nearly 3,000 screens by 2008.

The company is also looking at expanding operations overseas by the end of this year. It is targeting 500 screens in Mauritius, Sri Lanka, Dubai, and Europe. UFO currently charges a theatre owner close to Rs 1.25 Lakh for registration after which the projection technology is installed by the company.

With the consent of the distributor, the halls are given an online licence and charged between Rs 250 and Rs 375 per screening. The whole system is encrypted to prevent piracy till the stage of projection and a separate watermark appears on the screen visible only on camera. This can be used to track in-theatre piracy if any.

UFO Moviez bagged the award for the biggest innovation in the film industry at the 8th International Indian Film Academy (IIFA) awards held at Yorkshire recently.