Multiplex and Single Screen Cinemas Indi Sample

Multiplex and Single Screen Cinemas - India

March 2009

2MULTIPLEX AND SINGE SCREEN CINEMAS – INDIA.PPT

SAMPLE

Executive Summary

Market

Drivers &

Challenges

Characteristics

& Trends

Competition

�Estimated to be worth INR XX bn in 2008 and INR YY bn in 2012

�Key Segments: Single and double-screen cinemas and Multiplex cinemas

�Multiplex segment is growing while single screen segment is declining

�Southern Indian states together account for x% of the number of theatres in India

Trends

�Producers bypassing distributors

�Shift to digital cinema

�Alternate content in multiplexes

�Retail partnerships

�New format in single screen theatre

�Drivers:

– Supply side: Growth in Film Industry , improving supply of real estate and favourable tax exemptions

– Demand side: Favourable demographics, rising income levels and willingness of people to spend on recreation

�Challenges: Uncertainty over entertainment tax, slowdown in economy, alternate entertainment

avenues, development delays and piracy

• Single screen segment : Highly fragmented and unorganized

• Multiplex segment : Dominated by five organized players

• Major players in Multiplex segment: Company X, Company Y and Company Z

• Fierce competition in multiplex segment

Characteristics

�Seasonality

�Reducing shelf life of movies

� Low screen density

� Increasing average ticket prices


•Market Overview

•Business Model

•Drivers & Challenges

•Characteristics & Trends

•Competition

•Key Developments


SAMPLE

Cinema exhibition comprises of single-screen and multiplex

theatres, with the latter growing rapidly

• Key Segments

�Single and double-screen cinemas

�Multiplex cinemas, i.e. three screens or more

• Multiplexes account for:

� x% of the total number of cinema halls

�y% of total cinema screens in the country

• South Indian states together account for x% of the

number of theatres in India

Overview Market size & growth

Theatre distribution Growth of Multiplexes

0

50

100

150

X

2006

Y

2008

Z

2012

+b%

+c%

+a%

INR bn

0

500

1,000

1,500Z

+a%

2012

+c%

+b%

X

2006

Y

2008

Screens

u%

Andhra Pradesh

v%Tamil Nadu

w%

Kerala

x%

Karnataka

y%

Maharashtra

z%Uttar Pradesh

t%

Others


SAMPLE

Ticket and F&B sales contribute to bulk of revenues

ExhibitorSecondary Revenue

Primary Revenue

v%

z%y%x%w%

OthersAdvertising

ParkingF&B

Ticket

z%y%x%w%v%

OthersRentTaxesF&BDistributor

z%Convenience Fee

y%Management Fee

x%Parking Charges

z%Advertising Revenue

y%F&B Sales

x%Ticket Sales

z%Personnel Cost

y%Overheads

x%Rent / Rev Share

z%Entertainment Tax

y%F&B Cost

x%Distributor’s Share

Secondary Costs

Primary Costs


Drivers

Drivers

Growth in

Film Industry

Improving supply of

Real EstateTax Exemptions

Favorable

DemographicsRising Income levels

Willingness of people

to spend on recreation

Demand Side

Supply Side


Uncertainty over

entertainment

tax

PiracyDevelopment

delays

Alternative

modes of

entertainment

Slow down in

economy

Challenges

Challenges


Key Trends

Trends

Producers bypassing distributors

Shift to Digital Cinema

Alternate content in multiplexes

Retail partnerships

New format in single screen theatre


SAMPLE

Single screen segment is unorganized while multiplex segment is

highly organized and dominated by five players

•Single screen segment is highly fragmented

with few owning more than one movie hall

•Five players dominate the multiplex industry

•Box office revenue breakup in multiplexes:

� x% from Hollywood movies

�Over y% from local Hindi language movies

•Occupancy levels

�Multiplexes : x-y%

�Single screen cinemas : a-b%

•Fierce competition in multiplex segment due

to attractive economics and growth potential

� Leading players have major expansion plans

�Many new players are planning to enter this

industry

Competition Number of screens multiplexes

0

50

100

150

200

X

Y

Company

x

X

Y

Company

Y

X

Y

Company

z

X

Y

Company

V

X

Y

Company

W

Number of Cinemas

Number of Screens

0

5

10

15

20

0

10

20

30

40

50

a%

c%

W

V

Company X Company ZCompany Y

d%b%

U

X

Company V

Occupancy

Footfalls (mn)mn %

Footfalls and Occupancy ratio

Multiplex and Single Screen Cinemas Indi Sample

Documents

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