Multiplexes are reducing ticket prices 12-40 per cent, depending on properties, in order to check the drop in occupancy due to the lack of good content and the consumers' reluctance to spend.
Around 70 per cent of the total revenues of multiplexes come from ticket sales, 20 per cent from food and beverages and the remaining from on- and off-screen advertisements.
While footfalls have dropped 20-35 per cent, consumers' discretionary spend has stopped as far as movies are concerned.
Many multiplexes are also banking on promotional offers and schemes, like a 20 per cent discount on ticket prices, free popcorn, etc, for those booking tickets online.
According to Vishal Kapur, COO, Fun Multiplex, "We have rolled back our ticket prices by 12-18 per cent in select cities like Ahmedabad, Lucknow and Gwalior to bring in more people. After the reduction, our ticket prices are between Rs 95 and Rs 115, depending on the day of the week."
He added, "Footfalls dropped 30-35 per cent in February, compared with December and January. The rest of March does not look good either."
Devang Sampat, vice-president (marketing and programming), Cinemax, said, "We have reduced ticket prices almost 40 per cent. In December, due to big-ticket releases, most multiplexes were charging a premium. Cinemax has also reduced food and beverage prices by close to 15 per cent."
A spokesperson of Big Cinemas said, "We have decreased ticket prices 30-40 per cent in Delhi NCR and Maharashtra order to boost occupancy. After the drop in prices, our tickets are priced between Rs 60 and Rs 300. Our premium lounges, however, are still priced at Rs 700."
Arvind Shroff of Shringar Cinemas, which runs the Fame multiplexes, said, "We have lowered our weekday ticket prices 10-15 per cent, compared with the rates in November-December. Most movies being released now are small-budget movies compared with the blockbuster releases of November and December."
Rishi Negi, COO of Shringar Cinemas, said: "We are also depending on several promotional offers and schemes. Our offers include 20 per cent discount on ticket prices, free popcorn, etc, for consumers booking tickets online."
PVR Cinemas has dropped prices for shows screened before 1 pm to as low as Rs 50-100, depending on properties. Its tickets were earlier priced between Rs 80 and Rs 150.
Pramod Arora, president of PVR Ltd, said, "We are reworking ticket prices across the country. Tickets for some morning shows will be priced less, while some other shows will be priced a little higher. This way, the average ticket price will not come down. We are also introducing several combo offers on food and beverages. For instance, a Pepsi with popcorn can be had for a discount. For the company, it means increased sales."Alok Tandon, COO, Inox Leisure, said: "We have noticed a slight reduction in footfalls for want of good movies and also because consumers' discretionary spend has stopped. Although we have not reduced prices, we are running several promotional offers that will help boost occupancy rates."