Multiplex And Single Screen Cinemas India Sample

1. Multiplex and Single Screen Cinemas -India March 2009

2. 2
MULTIPLEX AND SINGLE SCREEN CINEMAS - INDIA.PPT
SAMPLE
Executive Summary
Market
Drivers &
Challenges
Characteristics
& Trends
Competition
MEstimated to be worth INR XX bn in 2008 and INR YY bn in 2012
MKey Segments: Single and double-screen cinemas and Multiplex cinemas
MMultiplex segment is growing while single screen se gment is declining
MSouthern Indian states together account for x% of t he number of theatres in India
Trends
MProducers bypassing distributors
MShift to digital cinema
MAlternate content in multiplexes
MRetail partnerships
MNew format in single screen theatre
MDrivers:
–
Supply side: Growth in Film Industry , improving supply of rea l estate and favourable tax exemptions
–
Demand side:Favourable demographics, rising income levels and w illingness of people to spend on recreation
MChallenges: Uncertainty over entertainment tax, slowdown in eco nomy, alternate entertainment
avenues, development delays and piracy
•Single screen segment : Highly fragmented and uno rganized
•Multiplex segment : Dominated by five organized pl ayers
•Major players in Multiplex segment: Company X, Com pany Y and Company Z
•Fierce competition in multiplex segment
Characteristics
MSeasonality
MReducing shelf life of movies
MLow screen density
MIncreasing average ticket prices

3. 3
MULTIPLEX AND SINGLE SCREEN CINEMAS - INDIA.PPT
•Market Overview •Business Model
•Drivers & Challenges
•Characteristics & Trends
•Competition
•Key Developments

4. 4
MULTIPLEX AND SINGLE SCREEN CINEMAS - INDIA.PPT
SAMPLE
Cinema exhibition comprises of single-screen and mult iplex
theatres, with the latter growing rapidly •Key Segments
MSingle and double-screen cinemas
MMultiplex cinemas, i.e. three screens or more
•Multiplexes account for:
Mx% of the total number of cinema halls
My% of total cinema screens in the country
•South Indian states together account for x% of the
number of theatres in India
Overview
Market size & growth
Theatre distribution
Growth of Multiplexes
Source:
0
50
100
150
X
2006
Y
2008
Z
2012
+b%
+c%
+a%
INR bn
0
500
1,000
1,500
Z
+a%
2012
+c%
+b%
X
2006
Y
2008
Screens
u%
Andhra Pradesh v%
Tamil Nadu
w%
Kerala
x%
Karnataka
y%
Maharashtra
z%
Uttar Pradesh
t%
Others

5. 5
MULTIPLEX AND SINGLE SCREEN CINEMAS - INDIA.PPT SAMPLE
Ticket and F&B sales contribute to bulk of revenues
Exhibitor
Secondary Revenue
Primary Revenue
v%
z% y% x% w%Others Advertising
Parking F&B
Ticket
z% y% x% w% v%
Others Rent Taxes F&B Distributor
z%
Convenience Fee
y%
Management Fee
x%
Parking Charges
z%
Advertising Revenue
y%
F&B Sales
x%
Ticket Sales
z%
Personnel Cost
y%
Overheads
x%
Rent / Rev Share
z%
Entertainment Tax
y%
F&B Cost
x%
Distributor’s Share
Secondary Costs
Primary Costs
Source:

6. 6
MULTIPLEX AND SINGLE SCREEN CINEMAS - INDIA.PPT
Drivers
Drivers
Growth in
Film Industry
Improving supply of
Real Estate
Tax Exemptions
Favorable
Demographics
Rising Income levels
Willingness of people
to spend on recreation
Demand Side
Supply Side

7. 7
MULTIPLEX AND SINGLE SCREEN CINEMAS - INDIA.PPT
Uncertainty over
entertainment
tax
Piracy
Development
delays
Alternative
modes of
entertainment
Slow down in
economy
Challenges
Challenges

8. 8
MULTIPLEX AND SINGLE SCREEN CINEMAS - INDIA.PPT
Key Trends
Trends
Producers bypassing distributors Shift to Digital Cinema Alternate content in multiplexes
Source:
Retail partnerships New format in single screen theatre

9. 9
MULTIPLEX AND SINGLE SCREEN CINEMAS - INDIA.PPT
SAMPLE
Single screen segment is unorganized while multiplex segment is
highly organized and dominated by five players •Single screen segment is highly fragmented
with few owning more than one movie hall
•Five players dominate the multiplex industry
•Box office revenue breakup in multiplexes:
Mx% from Hollywood movies
MOver y% from local Hindi language movies
•Occupancy levels
MMultiplexes : x-y%
MSingle screen cinemas : a-b%
•Fierce competition in multiplex segment due
to attractive economics and growth potential
MLeading players have major expansion plans
MMany new players are planning to enter this
industry
Competition
Number of screens multiplexes
Source:
0
50
100
150
200
X
Y
Company
x
X
Y
Company
Y
X
Y
Company
z
X
Y
Company
V
X
Y
Company
W
Number of Cinemas
Number of Screens
0
5
10
15
20
0
10
20
30
40
50
a%
c%
W
V
Company X Company Z Company Y
d%
b%
U
X
Company V
Occupancy
Footfalls (mn)
mn%
Footfalls and Occupancy ratio

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MULTIPLEX AND SINGLE SCREEN CINEMAS - INDIA.PPT
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