costing project on movie theatre

movie theatre cost,maintenance in mumbai of a cinema

1. Costing Project on Movie Theatre PRESENTED BY 1.Sunil Garg 2.Amit Sobhani 3. Vikram Pitta 4. Upasana Varma 5.Jaydeep Mandavia 6.Jayesh Desai

2. CONTENT SR NO CONTENT 1. Introduction 2. Literature Review 3. Cinemax Vs Multiplex  4. Some Facts 5. Various Process 6. Costing 7 . Conclusion

3. INTRODUCTION

4. INTRODUCTION Multiplex has multiple screen movie theater complex which also offers lifestyle shopping. Multiplex has upgraded the movie watching experience in Indian cities

5. The structure of the multiplex mall explores the consumer psychology, where customers who come with the intention of watching a movie are made to pass all the floors in the shopping mall. It increases the possibility of their making some impulsive purchases. Contd … INTRODUCTION

6. New multiplexes are granted a five-year tax subsidy by state governments: entertainment tax is waived for the first three years, and there's a 50 per cent and 25 per cent waiver for the fourth and fifth years respectively (by which time capital costs are more than recovered). Single-screen theatres pay 45% entertainment tax. Contd … INTRODUCTION

7. People point out our tax subsidies, but they overlook multipex expenditure on land leases, equipment of international standards and heavy maintenance costs. Above all, not all films do well, so it's the business of averages.  We are not averse to sharing our profits but we also have to be financially viable at the end of the day. Contd … INTRODUCTION

8. LITERATURE REVIEW "Multiplexes" provide a quality viewing experience and are generally located around shopping malls. Cineplexes are poorly maintained as the owners find it difficult to upgrade their facilities, due to lack of organized finance.

9. Contd … Risks And Concerns Faced By Multiplexes And Cineplexes Alternative Entertainment Avenues : Movies compete for customer attention with other forms of entertainment like DVDs, TV etc. Slowdown In Content Supply : Multiplexes/ Cineplexes thrive and have to depend on the better supply of films from producers.

10. Contd.. Risks And Concerns Faced By Multiplexes And Cineplexes Single Screens Are Going To Die Soon: Multiplexes are preferred due to factors like crowd and presence of shopping malls. Multiplex/Cineplex Business Is Affected By Piracy: which seeped into every sphere of the business that has led to deep losses.

11. Contd … Why Are Multiplexes Preferred Over Single Screens For Movie Viewers? MULTIPLEX CINEPLEX 1. Multiplex Enjoy Rebates 1. Single Screen Doesn’t. 2. They offer extra facilities. 2. No Extra Facilities. 3. They offer Choice In Different Movies. 3. No choice in different movies.

12. Contd … Future Of Single Screens No doubt the road ahead for single screens is very challenging. Single theater are growing well in smaller towns .

13. Demand Side - Strong pull: Production of Hindi movies. People willing for the quality. Contd … LITERATURE REVIEW

14. How do you find the food items of multiplexes? 22 6 2 What type of ticket booking is convenient ? 6 15 6 2 Some Facts

15. Are ticket prices of multiplexes acc. to quality ? Are ticket vendors polite? 21 9 28 2 Which medium do you prefer ? 1 2 21 6 Some Facts

16. 6 16 Which factor prevent you to see a movie in multiplexes ? Some Facts

17. Which of the following benefits of multiplex do you agree with? Which class likes to go to multiplexes ? Some Facts

18. Are you able to spend money offered by multiplexes ? Is multiplex a better option than Cineplex? 20 10 8 Some Facts

19. Process of Film Making The 12 stages.. The idea Development finance Script development Packaging Financing Pre-production 7. The shoot 8. Post production 9. Sales 10. Marketing 11. Exhibition 12. Other windows

20. The Central Board of Film Certification (popularly known as the Censor Board) is a Government of India regulatory body and censorship board of India controlled by Ministry of Information and Broadcasting . It reviews, rates and censors motion pictures, television shows, television ads, and promotional material. It regulates the public exhibition of films in India under the provisions of The Cinematograph Act 1952 . Films can be publicly exhibited in India only after they have been certified by the Central Board of Film Certification OBJECTIVES The medium of film remains responsible and sensitive to the values and standards of society. Artistic expression and creative freedom are not unduly curbed Certification is responsive to social changes The medium of film provides clean and healthy entertainment and As far as possible, the film is of aesthetic value and cinematically of a good standard CENTRAL BOARD OF FILM CERTIFICATION

21. The Cinematograph (Certification) rules, 1983 have laid dowhe Procedure that a producer must go through, to get a film certified, the fees one has to pay and other materials that should be submitted . The film and other material have to be submitted to the regional officer of the concerned regional centre . On receipt of all the film materials, requisite fees and written matter required under the rules, the regional officer will form an Examining Committee to view the film. :   Categories Amount of Fee Feature Film in Hindi/ English Rs . 20,000/- Feature Film in all other languages Rs . 10,000/- PROCESS OF FILM CERTIFICATION Categories

22. Money Flow In Film Industry

23. MULTIPLEX VS CINEPLEX COSTING

24. " Movies First " EXAMPLE:PVR CINEMAS PVR Cinemas, one of the leading cinema chains in the country with over 108 screens in 26 different cinemas spread across multiple locations . State of the Art Technology that enhances the whole experience of watching a movie - the great picture quality , sound system etc. Costing for a Multi plex Sultan Of India‘s Multiplexes Ajay Bijli Chairman AND Managing Director, PVR Ltd .

25. One of the most important factors for Brand Loyalty . PVR offers “ HIGH PRICE discrimination” for various segments of its customers . In addition it has come up variety of schemes . Flagship Product Price ranges between Rs.100-200 Excellent viewing value to middle market audience . PVR Premiere screens, which would be high end luxury screens with an ATP beyond Rs.200. Middle upper market and premium location in metros PVR Talkies which have an ATP below Rs 100 . Aimed at value conscious market in tier 2 towns Price …… PVR CINEMAS

26. PVR CINEMAS

27. PVR CINEMAS

28. PVR CINEMAS

29. PVR CINEMAS

30. Live Costing for a Cineplex *Plaza is a cinema hall in the Dadar  locality of Mumbai. *It was bought by Sakharam Govindji Keni from a  Parsi owner and is given on lease to V Shantaram in the 1930s. In 2005V. Shantaram trust sold their rights to run the cinema to Himani & Co *It was one of the three cinema halls where films seventh Asian Film Festival were screened. It is an important theater for the screening of Marathi cinema.  *It was one of the 13 places where 1993 bomb blasts occur r ed in Mumbai on 12 March 1993.10 persons died and 37 were injured.

31. Premises is on Rent / Lease - Owner   Who decides the Ticket Price - Owner ( completely) Theatre has a seating capacity of 664 which includes Balcony -111, Executive class -369 and Stall - 184 Food stalls in house ? On rent or on Profit sharing - Theatre own If all shows gets Cancelled, what is the loss for 1 day ? If 3 hours movie - Rs. 60000 x 4 no. of shows = Rs. 240000 If 2.20 hours movie - Rs. 60000 x 5 no. of shows = Rs. 300000 Break Even Point Minimum How many Tickets to be sold in a month to cover the cost ? Weekends - Fri, Sat and Sun - 80% Weekdays - Mon, Tues, Wed and Thurs – 40 % PLAZA CINEMA,DADAR

32. Distributor Charges % of weekly collection 1st week 50% 2nd week 40% 3rd week 30% Tickets Marathi Hindi Balcony (1st Class) Rs. 100 Rs. 150 Executive (2nd Class) Rs. 90 Rs. 120 Stall Rs. 80 Rs. 100 Fixed Ticket Price Contd … PLAZACINEMA,DADAR Distributor Charges

33. Particulars Amount Fixed Cost Salaries & Wages Security Guard (7 person X Rs. 15000) Rs. 1,35,000 Manager (2 person, 1st - Rs. 25000, 2nd - Rs. 20000) Rs. 45,000 Operators (2 person X Rs. 13500) Rs. 27,000 A.C. Operator (1 person X Rs. 15000) Rs. 15,000 Accountant (1 person X Rs. 20000) Rs. 20,000 Peon / Clerk ( 1 person X Rs. 8000) Rs. 8,000 Box Office Staff ( 4 person X Rs. 9000) Rs. 36,000 Housekeeping staff ( 10 person X Rs. 15000) Rs. 1,50,000 Depreciation: Premises Rs. 1,50,000 Projector & Operating system Rs. 13,500 Sound System (11 speakers) Rs. 11,500 Amplifiers (6) & Processor Rs. 28,500 Office expenses Rs. 9,500 Cost Sheet of Plaza Cinema ( Monthly sold– 42000 tickets) Contd …

34. Particulars Amount Variable cost Electricity Rs. 4,20,000 Flex Banner Printing (Rs. 8000 X 2) Rs. 16,000 Repair & Maintenance Rs. 15,000 Distributor charges (45%) Rs. 17,10,000 Entertainment Tax Rs. 3,90,000 Total cost Rs. 32,00,000 Profit Rs. 8,50,000 Sales Rs. 40,50,000 Contd … Cost Sheet of Plaza Cinema ( Monthly sold– 42000 tickets)

35. Particulars Amount Income Rs. 350000 Expenses - Material Rs. 125000 Canteen staff salaries(Rs. 9000 X 8 person) Rs. 72000 Profit Rs. 1,53,000 Other Income to the Plaza Cinema (Monthly) Food stall in-house Particulars Amount Two wheeler (Rs. 20 per wheeler ) Rs. 25,000 Four wheeler (Rs. 30 per wheeler) Rs. 15,000 Total Rs. 40,000 Parking Charges

36. CONCLUSION Mostly upper class and upper middle class prefer multiplexes Multiplexes provides luxurious facilities. Better audio and visual quality Lower middle class prefer cineplex because it is affordable

37. THANK YOU