The Hindu Business Line : Film industry to benefit from multiplexes

"Multiplexes will not only drive up overall revenues for the industry, their contribution will also go up and open doors to small-budget films," Mr Sunir Kheterpal, Country Head - Entertainment and Media Banking, Yes Bank Ltd, said.

In his study on the Hindi film industry, slated for release later this month, Mr Kheterpal said that the issues and doubts relating to transparency of box office reporting would reduce with expansion of film exhibition infrastructure through multiplexes.

The number of multiplexes is on the rise.

Along with it, the proportion of box office collections for Hindi films coming from multiplexes will increase from the current 29-35 per cent range.

Currently, there are 73 multiplexes comprising 275 screens alongside 12,000 standalone cinema halls. Multiplexes today account for 0.6 per cent of the total cinemas, 2.3 per cent of the total screens and have a total capacity of 89,470 seats. An average ticket price at a multiplex costs Rs 75-85. The average gross collection per multiplex is around Rs 5.72 crore.

According to Mr Kheterpal, six leading players in the multiplex business are expected to add 200-240 screens across 50-60 new multiplexes over the next 18-24 months. Small players in the multiplex business are also adding screens, and by the end of calendar 2005, Mr Kheterpal estimates that the number of operational multiplexes in the country will grow by 100 per cent.

The addition to the multiplex number will also lead to changes in film production and the conventional pattern of distribution. "The distribution industry will also change as production houses are likely to enter this arena through the multiplexes," he said.

Currently, many of the multiplexes are in the West and the North. This is mainly due to the tax incentives offered by the State Governments in these regions. But, over the next two years, multiplexes are slated to operate in other regions too.

Currently, 50 per cent of the total collections of Hollywood films comes from multiplexes. According to Mr Kheterpal, Hindi films and Hollywood films will largely benefit from multiplexes. Regional films, which constitute 5 per cent of the total collections from multiplexes, will benefit if multiplexes are set up in the respective regions, he said.

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