Why Karnataka's film ticket price cap may not pull off a blockbuster at theatres
Film producers and the Multiplex Association of India challenge Karnataka's ticket price cap of ₹200, claiming its impact is limited. Experts argue dynamic pricing is necessary for diverse cinemas, as discounts lose novelty and may not significantly increase theatre footfalls.
Cheaper tickets don’t always mean fuller theatres. As film producers and the Multiplex Association of India approach the Karnataka high court against the state’s new rule capping movie tickets at ₹200, and several films roll out discounts and offers, industry experts say the impact of such pricing strategies is limited. The novelty is fading with multiple films having already adopted rates as low as ₹99 on specific days, while the reduction in prices isn’t leading to enough of a jump in footfalls to offset the lower revenues.
Most experts see the price cap as a political move and argue that what is really needed is dynamic pricing across formats and properties, allowing premium cinemas to charge higher rates while ensuring affordable access through low-cost theatres.
Karnataka government's move to cap ticket prices came into effect on 12 September as part of an amendment to the Karnataka Cinema (Control) Rules 2014. According to a 2024 report by media consulting firm Ormax, strategies like Cinema Day (where tickets are priced as low as ₹99) can provide spikes through eventization but they are not habit-forming as an idea, and hence hold limited strategic value.
“Some films have gained from well-timed discounts—Cinema Lovers Day saw titles like Zara Hatke Zara Bachke and Article 370 record big jumps. But the novelty of these promotions is fading. If every film has an offer, audiences start expecting it, and the tool loses power," said Bhuvanesh Mendiratta, managing director of Miraj Entertainment Ltd, which operates multiplex theatres. Capping will make tickets cheaper, but it will also flatten the market, he added.
Depending on the film and the discount or cap in place, business can be dented by 30-40%, according to trade experts.
Multiplexes will lose flexibility in their plans, premium screens will take a back seat, and eventually, consumers will lose choice, Mendiratta said. Accessibility is important, but policy needs to recognize that one-size-fits-all pricing isn’t sustainable for a diverse exhibition industry, he added.
“Discounts and offers can help cinema footfalls in a market like India that is sensitive to price. However, the jury is still out on whether the increase in footfalls is enough to make up for the reduction in rates because it’s not like footfalls end up doubling or tripling," Rahul Puri, managing director, Mukta Arts and Mukta A2 Cinemas, said.
Puri added that instead of a blanket cap or day-specific initiatives, it makes more sense for cinemas to operate with dynamic and staggered pricing, where they should be allowed to charge premium rates in properties and locations where people are willing to pay the same. On the other hand, there is a sizeable audience demanding more affordable pricing and it is important to offer them those.
Some entertainment industry experts point out that the price tweaks are also losing novelty, with studios going too far in desperation. For example, last week, the makers of comedy drama Heer Express had offered a family package in cinemas, with a discount of ₹225 on every ticket purchased.
“This isn’t helping the industry in any way because there is no value to tickets then. You can’t price tickets at ₹100 one day and then expect people to pay ₹800 when a big film comes. Pricing has to be more consistent for people to keep coming to theatres. That’s when the cinema-going habit will pick up," said Yusuf Shaikh, founder and chief executive officer of Janta Cinema, a chain of low-cost theatres.
Reasonable and consistently affordable pricing has helped the movie business in markets such as south India, where families go out to the cinema three to four times a month, as against the Hindi belt where it is uncommon for people to visit theatres even once a month on a regular basis. That explains the wide prevalence of single screens in these regions, entertainment industry experts say. States such as Tamil Nadu, Andhra Pradesh and Telangana also cap ticket prices, depending on single screens and multiplexes.
Cinema screen density is anyway at a minimum in the Hindi-speaking belt and access to theatres remains an issue for movie fans in several regions, a challenge that cannot be resolved by capping ticket pricing in existing theatres.
“Cinema is a mass medium and needs affordable pricing to keep the volume of footfalls high. But in the Hindi belt, multiplexes are fighting high business costs and want to cash in opening weekend collections (where they hike rates to a large extent)," said Ashutosh Agarwal, owner of Star World Cinemas in Uttar Pradesh.
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