Sunday, 6 September 2015

Cinema is everlasting, there is always public- PV Sunil, CEO, CarnivalCi...

Some great insights on how bollywood business model, in India in this  chat with Sunil, of Carnival Cinemas, which can serve of 1,09,000 operating at 121 locations, with 341 screens in 85 cities. and they will have 1000 by 2017.

It is the age of the multiplexes. Carnival has been on an acquisition spree picking up Big cinemas, With this consolidation deal, Carnival Cinemas would acquire over 300 screens owned by Reliance Media Works for an estimated Rs 700 crore. This comes months after Carnival Cinemas acquired HDIL’s multiplex chain, Broadway Cinemas for about Rs 110 crore. The  emerging four Indian biggies post consolidation are PVR, Inox, Carnival and mexican giant Cinepolis in this field. 

Ever thought about why the first weekend matters so much to a bollywood release? Here’s the deal. All big budget movies are about maxing out the number of screens for release in the first weekend, and everything builds up towards that crescendo. A typical Salman movie might release in 3000 screens across the country, with 4 shows/ day, and 300 people per show watching the movie @ Rs 150 per ticket. Do the math, and just the launch weekend take amounts to Rs 100 Cr  which is what a successful movie makes in India. And the movie after that goes on to TV/ satellite rights and Digital rights are at the very bottom Typically, in terms of revenue, theaters are about 50-60%. satellite is about 30% and 10% are the digital rights

Given the significant real-estate linkage for the movie multiplexes, there is a lot of experimentation in the multiplex game. Everything from own your multiplex, or own a mall with a multiplex, or have just branding- where Carnival offers a franchisee model. They are not capex intensive property. They can open up other sources of revenue, such as advertising, as a pan india chain, which small or individual chains cannot.

Sunil also sees funding as not being a source of concern, as more is currently being made available- Cinemas are ever lasting, there is always a public for it and he believes there is a sound business case. Amen to that.


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