MAI says average ticket price in India in 2023 was Rs 130 in response to Karan Johar's 'expensive popcorn' comment

Karan Johar has blamed expensive popcorn for no footfall in theatres

The Multiplex Association of India has responded to filmmaker Karan Johar's recent statement that families in India do not wish to watch movies at a cinema hall due to the inflated prices of food options available there. In an interview with The Hollywood Reporter India, Karan said that the audience would rather spend at a restaurant than watch a movie in theatres.

Karan Johar's concern on expensive food at multiplexes

He explained, "They went to 100 homes, and out of those 100 homes, 90 said they would watch only two films a year (in theatres). This is of an income group that is a massive part of our audience base. They can't afford it. They may come out on Diwali, or if they hear about a film like Stree 2."

He added, "Family members said that they don't like to go to cinema halls because when kids say that they want popcorn or something to eat, they feel bad denying them. So they would rather go to a restaurant, where they're not paying for the ticket; they're paying only for the food. They said, ‘Our child will point and say he wants caramel popcorn, but we can't afford it.' Because the average cost for a family of four can be Rs 10,000. And maybe those Rs 10,000 are not in their economic planning at all."

In response, Kamal Gianchandani, President, Multiplex Association of India, and CEO of PVR Pictures Limited & PVR Limited, issued a statement to address the concerns raised on their pricing strategies and the overall cinema experience.

Multiplex Association of India's statement on cinema ticket pricing

"While we normally prefer to handle matters involving producers and distributors through direct communication with the relevant parties, we find ourselves in a situation where it is important to share our perspective with a broader audience. Recently some media reports surfaced, highlighting concerns about the impact of high prices on cinema visitation. In the same context, the reports carried Mr. Karan Johar's comments suggesting that cinema exhibitors are responsible for high ticket and food & beverage (F&B) prices. We believe it is essential to provide a more balanced view on this matter.

Firstly, let's address the numbers. In 2023, the Average Ticket Price (ATP) across all cinemas in India was Rs 130 per ticket. The country's largest cinema chain, PVRINOX, reported an ATP of Rs 258 for the fiscal year 2023-24. Additionally, the Average Spend Per Head (SPH) on F&B at PVRINOX during this period stood at Rs 132. This brings the total average expenditure for a family of four to Rs 1,560 - significantly different from the Rs 10,000 figure carried in the media reports.

It is also essential to highlight that cinema pricing is dynamic and flexible. Prices fluctuate based on factors like location, day of the week, seat type, film format, and cinema format. Exhibitors utilize sophisticated digital tools to stimulate audience demand and optimize pricing, frequently offering discounts and promotions that make cinema outings more affordable, not just during off-peak times but even on popular days. Many of these initiatives can lower the overall cost of a cinema visit by more than 50%, providing families and moviegoers with affordable options. All pricing structures are clearly listed both at cinemas and online, ensuring transparency and choice for customers.

More than anything else, it's a well-recognised fact that the demand for a film is largely driven by its content and appeal, rather than by pricing alone. Any evaluation of pricing in the cinema industry must account for the broader economics of movie business, which involves multiple stakeholders, including producers, distributors, and exhibitors. Each of these players contributes to the final cost to consumers, with prices ultimately shaped by the market forces of demand and supply. If lowering prices could optimize revenue for everyone involved, cinema operators would naturally make those adjustments without needing to be told.

Additionally, unavoidable factors such as inflation play a role, and India has historically experienced high inflation rates. Nevertheless, cinema exhibitors continuously experiment with pricing models, collecting customer feedback and leveraging data analytics to refine their strategies. This ensures that the current pricing is both competitive and fair in the context of today's market.

At the heart of it all, our industry remains committed to delivering a diverse, high-quality, and accessible entertainment experience for all moviegoers. We believe it's crucial to consider the full picture before drawing conclusions about pricing, as it's a complex issue involving many moving parts. The goal remains the same: to provide audiences with the best possible experience at a fair value."