Many people are assuming that it is film audience who will benefit more from the cap on ticket prices at Rs 200. But pause and think and there is a surprise. With the Rs 200 price cap set by the Karnataka government in the recent budget there is no doubt that consumers will benefit. But let us analyse the other beneficiaries.
Movie lovers who go with family to a movie theater used to spend Rs 4000 to Rs 5000 per movie in a multiplex. Now they have to spend around Rs 1500 to Rs 2000. So this family can watch 2-3 movies in a month.
The biggest advantage therefore is to multiplex owners. For normal Kannada movies in the week says the price was between Rs 120-150. Only for Kannada movies with big stars they used to hike the price on first week or weekends and that too not like the hike they did for other language movies.
Other language Star movie tickets was somewhere around Rs 200-400 in the week days and in the weekends it used to be around Rs 600 to Rs 1000. This craze would be for first two weeks. Now with the price cap by the government audience will have the chance to view more movies in a given month and if the movie is good they see the same movie a second time also. Multiplex has the advantage of getting more crowd now.
Secondly since in many single screen theaters the maintenance is not up-to the mark now audience has the choice of seeing the movies in multiplex since they maintained clean and the malls they are in is always air conditioned. If they don't get the ticket for their desired movie there is a choice for them to go to some other movie since many malls have 6 – 10 screens with different films. The price difference between single screens and multiplexes has narrowed and more people will move from single screens to multiplex for the better service and options they provide.
This Chitraloka analysis shows multiplex malls will not suffer much after the price cap but in fact benefit from them.
The major persons who will be affected with the price cap will be the other language producers and distributors. Those who were buying the distribution rights with fancy price may have to think twice now.