Is blockbuster pricing a box office booster or deterrent for films released during big festivals?

While some experts point out that footfalls in a country like India could be significantly higher if tickets are nominally priced, especially for such occasions, multiplex chains say the box office for big-ticket films is only bolstered by such rates and people don’t mind paying more when the content on offer is of scale and value.

For big festivals such as Diwali, ticket prices can increase as much as threefold across multiplex chains and single-screen cinemas, a strategy that is referred to as ‘blockbuster pricing.’ In their opening weekends, the two Hindi language Diwali film releases, Bhool Bhulaiyaa 3 and Singham Again, earned ₹100 crore and ₹111 crore, respectively.

“Diwali has historically been a significant time for the cinema industry, consistently drawing large audiences to theatres year after year. Post-covid, it’s safe to say that we are witnessing a clear upward trend in footfalls, with this year marking a notable increase,” said Gautam Duta, CEO, revenue and operations, PVR INOX Ltd. “While it may seem that ticket pricing alone influences footfalls during festive seasons, it is ultimately the content of the films and the emotional connection they foster with audiences that have the greatest impact.”

Duta added that this year, the goal was to strike the right balance between offering premium experiences, such as IMAX and 4DX, while keeping prices accessible, especially during Diwali.

As a result, the chain had strong footfalls with over 70% occupancy nationwide, driven by Singham Again and Bhool Bhulaiyaa 3. The availability of a wide range of pricing options, from premium formats to more affordable ones, allowed everyone to enjoy the festive cinema experience, he pointed out.

Producer mandate

High ticket pricing is a mandate that usually comes from the producers and distributors of films, especially when they have invested in big-budget projects, said Pranav Garg, managing director at Maya Palace, a two-screen cinema in Muzaffarnagar.

“The idea is to manage a big opening and beat the openings of past hits. Also, if we had operated on certain rates last year, we cannot reduce prices this year,” Garg said.

For audiences too, cheaper rates during holidays would suggest that the content on offer is not good enough, Garg added, or conversely, the clientele walking in may not include the upper end of the audience segment.

“Festivals are the best time to make recoveries. Anyway, we don’t have a lot to play between now and Pushpa that releases in December. Prices don’t matter and people are ready to pay if the content and reviews around it are favourable,” he explained, citing the example of mass-market stars like Salman Khan that pull crowds with high rates even in smaller towns.

Rahul Puri, managing director of Mukta Arts and Mukta A2 Cinemas, agreed that when people go out for big films during festivals like Diwali, they expect to pay a certain amount and there isn’t much cribbing about prices. By the third or fourth week of a film’s release, however, the rates are brought down to lure the crowd that may be less inclined to watch them.

However, other experts pointed out that overcharging for big films is an easy way to kill the business, especially when large families plan outings. In several small towns, ticket prices for Bhool Bhulaiyaa 3 and Singham Again remained upwards of ₹450.

According to a report by media consulting firm Ormax, 943 million footfalls were registered in theatres in 2023, a growth over 2022 but still below the pre-pandemic level of 1,030 million in 2019.

While more than 1,000 films were released in 2023, the top 10 films alone contributed 40% of the year’s total box office. The average ticket price increased by 9% over 2022 and is now 22% higher than the pre-pandemic (2019) level.

“This kind of pricing has proven to be the nail in the coffin for film business in north India. Entertainment is the last priority on people’s lists, and they will readily spend on other things if a family of four has to pay 10% of its monthly income to watch a film in a multiplex,” said independent exhibitor Vishek Chauhan.

And if the film doesn’t meet expectations, viewers would not come back easily.

“Nobody likes to be ripped off,” Chauhan explained.