Luxury-format cinemas: Where tickets cost an arm, and popcorn, a leg

Not much has changed at the iconic red and cream coloured building in south Mumbai for nearly nine decades, except for a recent addition to the theatre’s name and screen format—it is now known as Eros IMAX, after the 70 mm motion picture film format and projection system. This is the first IMAX screen in south Mumbai and was launched by IMAX’s Canadian parent in collaboration with PVR Inox, India’s biggest multiplex chain, which now operates Eros.

The Eros building, commissioned in 1935 by Parsi businessman Shiavax Cawasji Cambata, hasn’t lost its vintage vibe on the outside and still retains much of its Victorian Gothic and Art Deco style architecture. But some parts of the interior, including the lobby and the gigantic auditorium, have been remodelled and converted to accommodate the immersive Canadian screen format, which is rapidly gaining ground across the country thanks to multiplex operators such as PVR Inox, which are looking to up the premium game for aspirational Indians.

Reopened as Eros IMAX in February 2024 after the original Eros Cinema closed in 2017, the theatre is the third standalone—in a single-screen cinema as opposed to a multiplex—IMAX in the country. The other two, Priya Cinema and Paras Cinema in Delhi, have come up over the past year after PVR Inox decided to cater to the affluent, metro demographic. With 305 seats, Eros is the go-to destination for the upmarket, elite clientele from nearby areas such as Cuffe Parade, Colaba and Marine Drive.

Similarly, Priya Cinema is located in Delhi’s Vasant Vihar, home to people affluent enough to pay for an IMAX show and a luxury experience while watching a movie. In theatres like these, a ticket can set you back by at least ₹500-700 and as much as ₹2,500, depending on the film; food and beverages will add substantially to that bill.

Over 20 kilometres away from Churchgate, in the Bandra Kurla Complex (BKC), a similar upmarket crowd saunters in for shows of Furiosa, Kung Fu Panda 4 and Rockstar (the 2011 Ranbir Kapoor film has been re-released as there are few new films on offer). Nestled between stores of international brands such as Gucci, Jimmy Choo and Balenciaga, Maison INOX in BKC has a full-fledged, standalone bar, not something you’d find in other cinemas.

A walk through Gatsby’s bar (apparently named after Jay Gatsby, the protagonist of F. Scott Fitzgerald’s 1925 novel The Great Gatsby, played by Leonardo DeCaprio in the 2013 film of the same name) leads you to a luxury theatre with two Insignia (a luxury format owned by Inox) screens, one IMAX screen, and three regular screens, where prices can go up to ₹2,500. The bar is a business in its own right, and functions as a location for events and parties independent of movie screenings. Guests are allowed to enjoy their drinks without carrying them into the movie hall. Inside the hall, a live kitchen and blankets on seats await them.

Given the abundance of content available for home viewing, several entertainment industry experts feel properties such as Maison point to a future where cinemas will become luxury, up-market, premium spaces combining the best food, lounge areas, sound and projection. Indeed, the movie itself may not be the most critical part of the experience.

PVR Inox is increasingly investing in luxury cinemas and gourmet food innovations while other chains, such as Miraj, are launching IMAX properties. And, as with Eros IMAX, all of this will come with steep ticket prices and F&B rates.

However, the big question is, with chains increasingly going premium and even regular properties known to cost more than the average Indian can afford, has a significant chunk of the population been completely locked out of the theatre experience? Will cinema in India leave the common man out? It certainly appears so. The operational heads at multiplex chains say their elite clientele do not really care about the price, implying that the high rates assure them they will be rubbing shoulders only with their own class and won’t have to mingle with ‘the great unwashed’.

Segmentation Imperative

We’ve always believed that you need to segment the market that you’re targeting—it’s not a one size fits all. There are certain customers who want the full experience of a five-star hotel or a first-class airline, and to get them out of their homes, where they have large plasma screens and home theatres, you have to give them that experience," Ajay Bijli, managing director, PVR Inox Ltd, told Mint. “Then there is a value-conscious customer, who simply asks for a clean, hygienic cinema and good sound and projection."

At PVR Director’s Cut, a luxury format multiplex in Delhi’s Vasant Kunj locality, where Bijli meets us, lounge areas have been designed as private living rooms complete with a library, a sushi bar and liquor offerings. We are continually distracted by the sounds of a kids’ birthday party that is on in full swing in a separate section, with a bunch of seven-year-olds having walked out of a screening of animated adventure comedy The Garfield Movie.

The luxury theatre format will account for 20% of PVR Inox’s overall screen inventory in the next few months, from 14-15% now. Bijli says getting out of the home and making a plan is often a chore, so service standards have to be upped. “After the pandemic, people want things to be more experiential—the difference between watching something at home and in the theatre has to be more (stark). Even in small towns, we’re increasingly seeing people opt for the last few rows with say, recliners or special services," he explained.

The luxury segment typically outperforms regular screens in terms of revenue generation, said Devang Sampat, managing director, Cinepolis India. “Audiences are willing to pay a premium for the enhanced experience, which translates into higher ticket prices and increased food and beverage sales," Sampat added.

The company, which has launched premium screens equipped with immersive technology such as 4DX or IMAX, says higher-priced tickets and facilities such as VIP lounges and exclusive events boost profitability, despite the higher operating costs. For Cinépolis, the average revenue per patron in the VIP segment is about two-and-a-half times higher than in the traditional segment.

“The luxury segment of the cinema industry holds up relatively well in the face of paucity of content or underperformance of films compared to regular screens. This resilience can be attributed to the fact that luxury cinemas offer much more than just the movie itself; they provide a social and community experience that appeals to a discerning audience," said Sampat. “These cinemas feature amenities such as plush seating, gourmet food and beverages, and personalised services that create a memorable outing beyond the film."

During periods of few or no big releases, luxury cinemas can leverage their amenities and services to attract patrons through alternative programming. This includes special events, exclusive screenings, or themed movie nights, which continue to draw audiences even when blockbuster films are scarce. Additionally, partnerships with film festivals, live performances and corporate events can help fill the gap and maintain footfalls, ensuring that the cinema remains a vibrant destination, he added.

Further, the exclusivity and prestige associated with luxury cinemas ensure a loyal customer base that values the overall experience regardless of the specific movie being shown. In high-profile catchments such as south Mumbai and south Delhi, it is common, especially for older audiences, to stick to one cinema and refrain from going elsewhere in case a show is unavailable. A concrete example of this resilience, Sampat said, was Cinépolis’ luxury and premium formats witnessing a faster recovery in admissions post-covid than its regular-format screens.

Content Challenges

To be sure, entertainment industry experts point out that the transition to these up-market experiences also has to do with the kind of content themes increasingly adopted by filmmakers, particularly in Hindi cinema. Post the early to mid-2000s, as Dil Chahta Hai, Rang De Basanti, Khosla Ka Ghosla and others began speaking to more intellectually evolved viewers, multiplex chains followed suit with pricing that suited them, leaving the common man out of the picture. However, as the success of mass-market films Jawan and Gadar 2 last year showed, the biggest success stories happen when films work across demographics.

“Cinema, by its very DNA, cannot work in a segmented fashion. Films are meant to be unifiers, not dividers. The real blockbusters will come when you can speak to each individual," said independent exhibitor Vishek Chauhan. In contrast to Bollywood, which has started speaking to an elite audience with high ticket prices, rates are still capped in the South and films there continue to speak to the masses, said Chauhan.

A good example of the benefits of low pricing from the recent past is the National Cinema Day initiative, a single-day offering when tickets were priced as low as ₹75 or ₹99. Footfalls surged and even mid-scale, non-star films saw a jump in collections across the country.

Cinema, by its very DNA, cannot work in a segmented fashion. Films are meant to be unifiers, not dividers. —Vishek Chauhan

The other big irony is that multiplex chains insist on creating this fancy infrastructure for audiences that are spoilt for choice. Unlike top metros, the only avenues for entertainment in tier-two and tier-three towns tend to be movie halls. “But there is no content for nearly 70-80% of the population. Infrastructure, in turn, is driven by content," film distributor and exhibitor Akshaye Rathi explained.

While posh cinemas have been coming up in the country’s top markets, theatres in smaller towns have been shutting down permanently, Rathi said, as cinemas remain starved of content. With no new film releases for much of the past two months, top multiplexes have spent the summer running on film festivals, concerts and IPL matches. Small-town theatres, meanwhile, have seen their business sink.

“When there is a regular supply of content, people will definitely come. When there are no new films, nothing works," said Amit Sharma, managing director of multiplex chain Miraj Entertainment, explaining the implications of the lack of content on the overall business, including luxury formats. Miraj has three IMAX screens scheduled to open in the next few months.

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Demographic Divide

Another big challenge for luxury formats could arise from the deteriorating box office numbers of Hollywood films in India. Formats such as IMAX are particularly suited to the large-scale spectacles Hollywood has mastered, which Indian films have only begun exploring. However, while contracts signed by IMAX with Hollywood studios globally mandate playing American films shot in the format for at least three to four weeks, there could still be a paucity of content that justifies paying such high rates in posh Indian theatres, even if it’s for a clientele that doesn’t need to count its pennies. Since reopening, Eros, for instance, hasn’t screened too many films made specifically for IMAX, or even big-budget spectacles in general.

In their defence though, multiplex chains insist that the demographic that luxury cinemas target is genre-agnostic and doesn’t necessarily wait for big-ticket films or visual spectacles to visit theatres. In fact, these audiences are willing to pay even for small and mid-scale films such as Laapataa Ladies and Srikanth, both recent releases that clocked impressive admissions in premium cinemas, according to operators.

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Where then, does that leave other movie buffs? For now, the priorities seem clear. “India is a country with people of different income levels and everyone wants to watch a movie their own way. Our morning shows come for less than ₹100, but going below that will probably not work for us," as Bijli put it. “I’m here to make cinemas and make consumers happy. But at the same time, we have to make sure the business remains viable."