Karan Johar's Rs 10,000 Multiplex Claim: Fact Or Fiction, Asks Multiplex Association

The Multiplex Association of India on Wednesday marked its disagreement in response to film producer Karan Johar's claim that a movie outing costs a family of four persons around Rs 10,000, due to inflated food and beverages costs.

The cinema operators' body said a family of four, on an average, incurs a cost of Rs 1,560 during a visit to a multiplex, which includes the expenditure on food and drinks.

In 2023, the average ticket price across all cinemas in India was Rs 130 per ticket, the association said. The country’s largest cinema chain, PVR INOX, reported an ATP of Rs 258 for fiscal 2024, it pointed out.

"Additionally, the average spend per head on food and beverages at PVR INOX 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," the association said in a statement.

Johar, while recently speaking to the Hollywood Reporter India, suggested that movie viewership could be down due to the high cost incurred during visits to multiplex theatres. Citing a survey, he claimed that out of 100 households, 90 said they could afford to visit multiplexes only twice a year.

"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...They said, ‘Our child will point and say he wants caramel popcorn, but we can’t afford it'," reports quoted him as saying.

The multiplex body, in response to the news reports that carried Johar's remarks, said 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, the association said.

"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 optimise revenue for everyone involved, cinema operators would naturally make those adjustments without needing to be told," it said.

The association also noted that cinema pricing is dynamic and flexible, and fluctuates on factors like location, day of the week, seat type, film format, and cinema format.

Cinema exhibitors use digital tools to stimulate audience demand and optimise pricing, "frequently offering discounts and promotions that make cinema outings more affordable", it said. Many of these initiatives can lower the overall cost of a cinema visit by "more than 50%, providing families and moviegoers with affordable options," the statement further noted.