Multiplexes are passé. A megaplex is opening near you soon.
For the uninitiated, a megaplex is a huge entertainment destination comprising 14 to 15 theatre screens as opposed to a multiplex, which houses four to five screens.
And Adlabs Cinemas, a Reliance ADAG venture, has signed up six megaplexes in cities like Mohali, Lucknow, Hyderabad and Delhi.
"We have signed six deals but we are looking at another six properties," said Tushar Dhingra, COO, Adlabs Cinemas.
According to multiplex chain company Cinemax India's Senior Vice-President Devang Sampat, the Punjab government has given a major push to the concept of megaplex.
In the state, the government gives a 10-year tax exemption to companies which set up 'mega' malls of one million square feet and megaplexes comprising a minimum of 10 theatres. "We have even signed up two megaplex ventures in the state," he said.
Surprisingly though, Adlabs megaplexes are mostly outside Punjab, and Dhingra does not see a problem in running 14 to 15 theatres at one place.
"Enough content is being produced in India today. Earlier there were a handful of film producers. Today, all the major corporate houses have gone into the entertainment business and are making films," he said.
Besides, it gives the multiplex company an opportunity to offer a greater choice to consumers and cater to different niches.
"For instance, with so many screens at one place, we could play around with pricing or focus on the 'experience' segmentation. While one screen could offer the gourmet experience with the film, the other could offer a complete luxury experience," he said.
Sampat, however, said that 15 screens would do well in cities with a strong culture or market for regional language films. "It's not clear if a megaplex will be successful in a city like Delhi or Mumbai," he pointed out.
Adlabs Cinemas claims to be the largest multiplex chain in India today with 151 screens. It claims a topline of Rs 165 crore (Rs 1.65 billion) for 2007-08.
