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Year 2014 was hectic for multiplex brands. Two major players - E- City Ventures' Fun Cinemas and Reliance ADAG's Big Cinemas - changed ownership and the Kerala-based Carnival Cinemas entered the big league (late-2014-early 2015). With the national consolidation over, the multiplex players are now left with the task of finding their unique selling proposition to make a mark on the consumer's mind.
The scale of the top two players, after all, are comparable now. While PVR (which acquired Cinemax in 2012) was at 464 screens, Inox (which bought Satyam Cineplex in 2014) had 365 by the end of 2014. Carnival with 300 screens (330 after buying Big Cinemas in late-December), took the third spot while the Mexican multiplex chain, Cinepolis at 193 was fourth.
While the industry consensus is that inorganic growth will now turn towards regional chains and standalone cinema halls in areas where multiplexes still have not weaved their way in, the challenge of the big four players would be to differentiate from each other to cater to the same catchment areas. After all, the content (movies) is the same for most multiplexes and increasingly, especially after the consolidation spree, the big four will now find each other contending for audience from the same neighbourhood.
PVR, which had a head start in 2012, got off the mark in differentiating by creating sub-brands that cater to different sections of the audience. PVR Director's Cut, for example, is a metro-centric concept, currently available in Delhi, while PVR Talkies can be found in smaller towns, bearing a marked difference in price-point in both movie tickets and food & beverage. The chain is also trying to spice up its content by looking beyond movies with its PVR Live brand, which works towards showcasing opera, ballet, sports and plays in its theatres.
"The intent is to be a thought-leader, a risk-taker. We would rather challenge the status quo and experiment, rather than follow others. This way, we can make our mistakes and learn from them," says PVR president Kamal Gianchandani.
While the multiplex's average ticket price for Q3-FY15 was around Rs 180, Gianchandani says that PVR caters to different strata of movie-goers, with tickets available at prices below the reported average.
But there is no denying the importance of the catchment area. Gianchandani says, "A good viable location goes a long way in sustaining footfalls at the property. Next comes the service and the technical quality of delivering content."
PVR plans to convert each of its acquired properties ultimately to the PVR brand, and slot it according to its sub-brands including existing Cinemax theatres. This is a marked difference from Cinepolis and its plans, fresh off its acquisition of Fun. Javier Sotomayor, CEO, Cinepolis India, says for Cinepolis, in a new market like India, it would want to leverage its popular acquisition and retain its identity.
However, that does not mean, says Sotomayor, that the look and feel won't change across theatres it now owns. The uniformity in service is something that Cinepolis will implement all across.
"The time spent at a Cinepolis property goes beyond the cinemas patrons come to see. So, from the time they enter, the way they are greeted, the time they spend at the box office and their experience in the food court, everything needs to have a certain tone and be up to the mark," he explains.
Sotomayor plans to target the audience who he thinks would not mind spending on the multiplex experience, but do not have access to a decent facility. Thus, Cinepolis has concentrated its presence in tier-II cities and mini-metros where the novelty factor can work in Cinepolis' favour, with its tickets priced between Rs 90 (regular 2D screens) and Rs 400 (premium 3D screens).
Cinepolis will also position its properties as megaplexes, rather than multiplexes, with a minimum of six screens. "It gives us more to offer our patrons. We can run more shows and have a better experience in terms of the space and activities," says Sotomayor. For example, its 14-screens property in Thane, one of Mumbai's satellite cities, has a phalanx of formats: VIP (recliners, in-seat service etc), IMAX, 4DX, Dolby Atmos, RealD 3D and 4K projection system. As with the Andheri West, Mumbai Fun theatre, Cinepolis plans to refurbish its other properties with its brand of interiors and service soon.
All eyes will now be on Inox and Carnival, in the fray to cash in on a cinema-going resurgence, on how they plan to distinguish themselves and make for a compelling case for a movie outing.
