India’s biggest multiplex chain is looking to the South to power its future expansion, betting on fast-paced retail developments, hunger for regional cinema and relatively low levels of multiplex penetration in the region.
“ Our market share in South India is much lower, as more retail developments happen in that part of the market, we want to add more multiplex screens..we think the South is highly underscreened in terms of multiplexes,” said Ajay Bijli, Managing Director for PVR-INOX.
In addition, the South Indian movie market has been on fire, thanks to the recent record-breaking performances from Rajnikanth starrer Jailer, Mani Ratnam directorial Ponniyin Selvan II, and Kamal Hassan starrer Vikram among others.
Even though the company’s recent screen openings in the South have been concentrated around Karnataka, the management said PVR-INOX plans to concentrate on all the states from South India for its expansion.
“We have opened a few screens in Karnataka, this does not mean we will not focus on the other states. The south is important to us..”, the management said in a post-earnings conference call.
The management of India's biggest movie theatre group has been for a while interested in expanding its business in the Southern part of the country as the region has been advancing in terms of the number of moviegoers who depend on multiplexes and premium cinema experiences.
Out of its total of 1,702 screens in India, only 546 screens are located in the South, with Karnataka accounting for 205 screens, followed by Tamil Nadu with 136 screens, Telangana with 106 screens, Andhra Pradesh with 52 screens and Kerala with 33 screens.
The management feels that the South is “highly underscreened” provided the robust demand, and new developments in the area.
The management also mentioned the reason for the exclusion of South from its brand new subscription plan for moviegoers, the PVR INOX Passport - a first of its kind in India, that allows movie-goers to watch 10 films in a month at a subscription price of Rs 699.
It said that the consumption rate down South is fairly robust which is why such a plan aiming to elicit consumer interest does not have to be implemented in the region.
“ We have opened ‘Passports’ for a big trial program to study the consumption pattern. The program is largely to propel more consumption. Down South, the consumption is anyway very high. In the next phase, after we have observed the consumers a little more closely we will come up with a product for South as well. “