Multiplex industry overview

MULTIPLEX INDUSTRY OVERVIEW

BY RUPESH SURADKAR SUKHWINDER KAUR SAGAR CHEDA KUHU PATHAK GEETIKA MAHAJAN

MULTIPLEX INDUSTRY OVERVIEWCINEMA INDUSTRY

• NET WORTH 13800 CRORES• KEY SEGMENTS – SINGLE AND DOUBLE SCREEN CINEMAS AND MULTIPLEX• MULTIPLEX SEGMENT IS GROWING AND SINGLE SCREEN SEGMENT IS

DECLINING• 1000 MOVIES CHURNED OUT EVERY YEAR• 3 BILLION TICKETS SOLD A YEAR

MARKET

DRIVERS & CHALLENGES

• SUPPLY SIDE – GROWTH IN THE 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 – UNCERTAINITY OVER ENTERTAINMENT TAX,

SLOW DOWN IN ECONOMY, ALTERNATE ENTERTAINMENT AVENUES,

DEVELOPMENT DELAYS AND PRIVACY

CHARACTERSTIC & TRENDS

CHARACTERSTIC • SEASONALITY • REDUCING SHELL

LIFE OF MOVIES • LOW SCREEN

DENSITY • INCREASING

AVERAGE TICKET PRICE

TRENDS• PRODUCER BYPASSING

DISTRIBUTERS• SHIFT TO DIGITAL

CINEMA • ALTERNATE CONTENT IN

MULTIPLEX• RETAIL PARTNERSHIPS • NEW FORMAT IN SINGLE

SCREEN THEATER

COMPETITIONS

• MULTIPLEX SEGMENT DOMINATED BY FIVE ORGANISED PLAYERS

• MAJOR PLAYERS LIKE PVR, CINEMAX, INOX, ADLABS AND FAME

• FIERCE COMPETITION

SWOT ANALYSIS

• MULTIPLEX INDUSTRY IS ONE OF THE BOOMING SECTORS OF INDIA

• SECOND LARGEST IN THE WORLD AND LARGEST IN TERMS OF FILMS PRODUCED AND TICKETS SOLD.

• THE GROWING MIDDLE CLASS WITH HIGHER DISPOSABLE INCOME

• CHANGE IN THE LIFESTYLE AND SPENDING PATTERNS OF THE INDIAN MASSES

• TECHNOLOGICAL INNOVATIONS

STRENGTH

WEAKNESS

• BUSINESS FORTUNES DEPENDS ON THE SUCCESS OF THE FILMS THEY ARE SHOWING

• RAPID DEVELOPMENT OF DIGITAL TECHNOLOGY LIKE BROADBAND AND NETWORKING SPACE

• PIRACY • EXISTING COMPETITION

OPPORTUNITY • INCREASING NO OF GLOBAL INVESTORS IN THIS

SECTOR • TECHNOLOGICAL INNOVATIONS LIKE

ANIMATIONS• RISE IN THE VIEWERSHIP

THREAT

• PRIVACY• ALTERNATIVE SOURCE OF ENTERTAINMENT

SUCH AS DTH, DVD CAN LEAD TO LOWER SALES• INCREASING COMPETITION WITH OTHER

ENTERTAINMENT SECTOR LIKE IPL AFFECTS THE OCCUPANCY RATE IN THEATER

PORTER FIVE MODEL ANALYSIS

Competitive rivalry in Industry

Bargaining power of Supplier

Threats of Substitutes

Bargaining power of

customers

Threats of New Entrants

PEST ANALYSIS

Political Analysis• Politically less sensitive area• Barriers in FDI • No clarity in terms of Govt. policy which is

ambiguous in many places creating a big disconnect between the Govt. policies, infrastructure and planning.

Economical analysis

• The economic slowdown has great impact on the pockets of the customers• Economic slowdown is creating tough environment• First mover advantage creates barrier for new entrants

PEST ANALYSIS Socio- Cultural Analyis

• It is very difficult to understand the preference of Hindi speaking masses which might be different from other classes like the English speaking class• The fact that Hindi speaking segment reach is more than 10 times the English segment reach but there is still a huge gap as the English segment get 70% revenue as compared to Hindi segment.

Technological Analysis

• The effect of IT industry is endless creating ever changing possibilities• Rapid innovations in the technological sector

PENETRATION OF MULTIPLEX

SERVICES PROVIDED

MULTIPLEX PROVIDES THE USERS

• ENTERTAINMENT RELETED INFORMATION

• PRICING • AVAILIBILITY• RESERVATION FOR ITS

TICKETS

THEATER ENVIORNMENT

• AUDITORIUM SEATING • RESTROOMS • PARKING AREAS

FILM PRESENTATION• SOUND QUALITY • PICTURE QUALITY • VOLUME

FOOD SERVICES • CLEANLINESS OF SNACK

BAR• SELECTION OF

CONCESSIONS• TASTE/TEMP OF FOOS

ITEMS

PERSONNEL

• TICKET CASHIER• SNACK BAR ATTENDENT • HANDLING OF PROBLEMS

1913 1961 1997 2008

1931 1974 1998

Raja harishchandraFirst Indian movie

Sheila theaterFirst 70mm

Theater,Delhi

PVR First modern

multiplex Delhi

Roadside RomeoFirst Indian

3Danimations by YRF and Walt Disney

Alam Ara First Indian

sound

Ek Anek Aur AnekAnimation Movie on DD For Edu purpose

Chota ChetanFirst Indian

3D

HISTORY OF INDIAN CINEMA

• Thank you