Pay more for big budget films

Catching some of the big budget films this season may pinch you a little more. After a lull, big-budget, big-banner and multi starrer films are ready to storm Bollywood. The industry opened its flood gates for the second quarter with Housefull and Badmaash Company – films which will make way for the much-awaited Kites, Rajneeti, Raavan, I Hate Lov Storys, and many other big films in the coming months.
According to sources in the industry, distributors of Kites have been asking for the tickets to be priced at equal rates or higher than that of 3 Idiots. DT found out that while revising ticket rates for 3 Idiots was a strategy that many other producers and distributors are keen to follow, this is also the time chosen by multiplexes to revise and hike ticket rates.
Deepak Taluja, VP, Business & Operations, Fun Cinemas, says, “Although there is only a marginal hike in the ticket rates for Kites (Rs 10 for morning shows and Rs 20 for evening shows on the weekend), hiking ticket price during May to September-October is a regular practice. All we need to do is to send an intimation to the licensing authority. Last year business during this period was marred by the distributor-exhibitor strike. The year before last had the IPL during the same time. But this year, we are expecting good revenue.”
Summer vacations, new session in Delhi University and no exams spell success for the film industry during this time. A source at DT Cinemas says, “The second quarter starting May, is the best time for our business. We have also hiked ticket rates from Rs 220 to Rs Rs 250 and Rs 250 to Rs 270. Distributors of big films are following the strategy of hiking the ticket price since they want to generate maximum revenue during the first week itself, their minimum target being Rs 17.5 crore. This is in keeping with the performance-based revenue sharing agreement that was signed by producers and multiplexes last year.”
Ashwini Singh, business head, SRS Cinemas, agrees that the time starting after Board exams till the beginning of Ramzaan (in August this year) is considered the best for the film industry, and even a minimal hike of Rs 10-25 (Rs 50-100 for premium properties) gives the business a shot in the arm. “This is the time when families plan outings. With DU’s new session, there’s an increased footfall for our morning shows as well. Considering that in the last two years, there was something or the else to ruin business, this year this quarter looks promising with good films lined up.”
A source at PVR agrees with Ashwini, that the hike, like the ticket price, varies among properties. “So while a Gold Class ticket in South Delhi or Gurgaon may cost more than Rs 500, in other places the tickets are ‘economically’ priced at Rs 125-Rs175. But we have to keep the prices low from January to March-April since this is the leanest period for the industry.” Amit Awasthi, manager, marketing, programming, Spice Cinemas, concurs, “Knowing that the audience has been waiting for these films, distributors are not reluctant to ask for tickets to be priced higher. The 12 noon-6 pm slot tickets, earlier priced at Rs140-150, are now available for Rs 150-170.”
Big ticket releases this summer
May 21: Kites
June 4: Rajneeti
June 18:Raavan
July 2: I Hate Luv
Storys
July 9:Milenge Milenge
(tentative)
July 16: Lamhaa
July 30: Kajraare
Aug 6: Aisha
Aug 13: Peepli Live
Aug: Action Replayy
Sep 24: Crook/Anjaana Anjaani
What they signed
According to the agreement signed in June last year, producers will get 52.5 per cent of the revenue generated by a film in the first week, 45 per cent in the second week, 37.5 per cent in the third week and 30 per cent in the fourth week if the movie earns over Rs 17 crore. In the case of first week revenue being Rs 10-17 crore, the producer’s share will decrease to 50 per cent in week 1 and 2. And in the worst case of the film grossing less than Rs 10 crore, producer’s share is 50 per cent for week 1, 40 per cent for week 2, 35 per cent for week 3 and 30 per cent for week 4
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