Multiplex Association Defends Karan Johar’s High Prices Statement: Average Ticket Cost Was Rs 130 in 2023

The Multiplex Association of India Responded to recent comments by Karan JoharClaiming that cinema halls are responsible for high ticket and food & beverage (F&B) prices, which in turn affects cinema visits, the association has made a detailed statement in a statement, offering a broader perspective on the issue.

“While we typically prefer to address issues that concern manufacturers and distributors by communicating directly with the relevant parties, we find ourselves in a situation where it is important to share our perspective with a broader audience,” they stated. By addressing the issue directly, they emphasized that pricing concerns are more complex than suggested.

The association addressed the misconceptions around Average Ticket Price (ATP). “In 2023, the ATP across all cinemas in India was Rs 130 per ticket. The country’s largest cinema chain PVRINOX reported an ATP of Rs 258 crore for the financial year 2023-24. Additionally, the Average Per Capita Spend (SPH) on Food and Beverages at PVRINOX during the period was Rs 132. This brings the total average spend for a family of four to Rs 1,560, which is significantly different from the Rs 10,000 figure in media reports.”

According to the association, cinema pricing is dynamic and flexible. “Prices fluctuate depending on factors such as location, day of the week, seat type, film format and cinema format. Exhibitors use sophisticated digital tools to stimulate audience demand and optimise pricing, often offering discounts and promotions that make trips to the cinema more affordable.” The association stressed that many of these initiatives could reduce costs by more than 50% and provide families with more affordable entertainment options.

The Multiplex Association also explained that demand for films is driven primarily by content and appeal, not just pricing. “Any assessment of pricing in the motion picture industry must take into account the broader economics of the film business, which involves multiple stakeholders including producers, distributors and exhibitors.”

Inflation and market forces also play a role in determining pricing, but exhibitors are constantly experimenting with pricing models to ensure fairness.

At its core, the association emphasized, the focus is on delivering value to the viewer. “The goal is the same: to deliver the best possible experience to viewers at a fair value.”