Multiplex - India

The cinema exhibition industry in India is growing at 10% per annum driven by multiplexes, which are expanding rapidly in major metropolitan cities as well as second and third tier cities. Favorable demographics in a cinema-crazy nation, tax exemptions, and quality locations such as malls, are driving growth of multiplexes in India.

The report provides a snapshot of the market including the two segments multiplexes and single screen cinemas. An overview gives a quick picture of the market with estimated market size, growth rate and theatre distribution in India. Various business models adopted by Indian multiplex operators are presented along with typical revenue streams and cost base. An analysis of drivers reveals that on the supply side - growth in film industry, improving real estate supply, and favourable tax exemptions have help in growth of this sector while on the demand side favourable demographics, rising income levels and willingness of people to spend on entertainment are increasing footfalls. The key challenges identified include slowdown in economy, alternate modes of entertainment, development delays, piracy and uncertainty over entertainment tax exemptions.

The industry is characterized by seasonality, low screen density, increasing average ticket prices, and reducing shelf life of movies. The key trends identified include producers bypassing distributors, shift to digital cinema, and alternate content in multiplexes, retail partnerships, and new single screen formats. The competitive landscape identifies and compares the major multiplex operators in the market since they dominate an industry where single screen cinemas are highly fragmented. Comparison parameters include number of screens, number of cinemas, footfalls and occupancy ratio.