Active Stocks
Tue May 28 2024 15:59:27
  1. Tata Steel share price
  2. 174.85 -0.37%
  1. HDFC Bank share price
  2. 1,530.50 0.17%
  1. ITC share price
  2. 428.90 -0.60%
  1. State Bank Of India share price
  2. 830.90 -0.38%
  1. Infosys share price
  2. 1,466.20 -0.37%
Business News/ Companies / Freemium vs premium at the cinemas: PVR borrows an app hack for its theatres
BackBack

Freemium vs premium at the cinemas: PVR borrows an app hack for its theatres

PVR Inox has rolled out an ad-free viewing feature at select premium theatres that it says are designed as social and community experiences combining dining and lounging

Renaud Palliere, chief of The Luxury Collection and Innovation, PVR Inox Ltd. (PVR Inox)Premium
Renaud Palliere, chief of The Luxury Collection and Innovation, PVR Inox Ltd. (PVR Inox)

NEW DELHI:PVR Inox Ltd has rolled out an ad-free viewing feature at some of its ‘premium luxury’ cinemas for moviegoers who can’t be bothered to sit through a bunch of advertisements at the theatre.

The feature will be exclusive to up-market cinemas designed as social and community experiences combining dining and lounge options. PVR Inox, India’s leading multiplex chain, has launched this feature in about 15 theatres across Delhi, Mumbai and Bengaluru this month as part of the first phase of its rollout.

“The idea had been brewing for a while and is based on feedback from consumers who visit our premium cinema formats and are time-conscious," Renaud Palliere, chief of The Luxury Collection and Innovation, PVR Inox, told Mint

“We decided to take this step to design an experience that is appropriate for and desired by them, whereby removing advertisements we ensure they visit the cinema only for what they’ve come for, which is to watch the film."

No ads, so what?
The usual template at a PVR Inox cinema is to run around 30 minutes of advertising as well as trailers of upcoming films, Palliere said. 

There will be no ads at select premium cinemas, although PVR will play 10-12 minutes of trailers and what Palliere calls information on long-term brand partners such as Kotak Mahindra Bank, insisting that these do not fall under the regular category of advertisers. 

Ticket prices at these cinemas will range between 650 and 1,000 per seat. 

Apart from the higher pricing, removing the ads allows for more screen time, which PVR expects would make up for the lost ad revenues.

Also read: Animal in IMAX, Tanhaji in 3D: Will the new tricks work?

“The benefit of removing advertising content is that we’ve emptied time slots, enabling us to add at least one full show per day," Palliere said. “We expect to exceed advertising income through more admissions, which would also translate into higher F&B (food and beverage) sales, which we see as a big win."

Ticket rates across properties are dependent on the day of the week, show timing and the film, he added.

Palliere expects the luxury theatre format to account for 20% of PVR Inox’s overall screen inventory in the next few months, from about 14-15% now.

Where are the audiences?

To be sure, the move comes at a time when movies, especially Hindi films, are performing way below par at the box office, with trade experts saying PVR would need to be able to draw in enough audiences in the first place.

“When content is sub-standard, audiences can see through such tactics. The need of the hour is to reduce ticket pricing across the board," said a trade analyst, declining to be named. 

Also read: Why producers are getting cold feet about big-budget films

Over the past few months, high-profile titles such as Bade Miyan Chote Miyan, Maidaan, Yodha, and Fighter have proven to be box-office duds.

Palliere, however, defended the move, insisting that audience frequenting premium cinemas welcome such features and desire to be pampered. 

“Luxury is a resilient format," he said. “And while the film in question is not incidental, it doesn’t have an adverse impact (on the business) even if it doesn’t turn out to be great. People come for the whole package that goes beyond the movie."

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

ABOUT THE AUTHOR
Lata Jha
Lata writes about the media and entertainment industry for Mint, focusing on everything from traditional film and TV to newer areas like video and audio streaming, including the business and regulatory aspects of both. She loves movies and spends a lot of her free time in theatres, which makes her job both fun and a bit of a challenge given that entertainment news often just talks about the glamorous side of things. Lata, on the other hand, tries to find and report on themes and trends in the entertainment world that most people don't notice, even though a lot of people in her country are really into movies. She’s a graduate of the Columbia School of Journalism.
Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 25 Apr 2024, 02:41 PM IST
Next Story footLogo
Recommended For You