My article in Dinathanthi Next tomorrow (4th November 2016). Do check out.
There is lot of hue and cry about the impending hike in the prices of
cinema tickets among a section of audience. But what they refused to see is the
current ticket prices in Tamil Nadu (of maximum Rs.120 in a multiplex, Rs.95 in
a miniplex/single screen a/c and Rs.40 in a non a/c theatre) were fixed on 1st
January 2007 by TN Government, which is 9 years ago. While the prices of every
consumer product, eatable, petrol, diesel and even the liquor sold in TASMAC
were hiked by more than 100% in these 9 years, only cinema tickets are
restricted by the Government, which is affecting the growth opportunity of the
film industry.
Movie tickets for a high budget film with a top artiste in North India
is sold for a minimum of Rs.300 to maximum of Rs.500/- in most multiplexes
first 3 days, which is bringing in huge revenue to Hindi films. The same is the
scenario in Karnataka where the multiplexes charge between Rs.250 to Rs.300/-.
Kerala government has completely moved away from fixing any ceiling to the
ticket prices and allowed free ticket pricing by the theatre owners with a
requirement to pay entertainment tax. Multiplexes there are charging between
Rs.250-500/-. Andhra and Telangana Governments also follow Kerala, which has
brought in good growth in the revenues of these film industries.
Why the Government in TN is fixing the ticket prices and also the number
of shows, which are against free trade practice? The reason emanates from the
tax exemption, which is given to Tamil cinema for over 10 years now, earlier just
to keep the title in Tamil and now for ‘U’ certified films. As the film
industry is enjoying the tax exemption, the Government considers it as a
beneficiary, which should serve the society by offering tickets at low prices.
What the Government forgets to remember is only in a ration shop, the rates are
fixed for consumables like sugar, rice etc. The same products when bought
outside, the prices are higher by 50 to 100%. Government offers only limited
quantity to the consumers through ration shops due to subsidized prices. But,
when it comes to cinema, where the option of consuming films is not restricted
to the audience, the ticket prices have been fixed is a contradiction!
To benefit larger public, the Government can fix a ceiling on the ticket
prices, taking into consideration the increase in the cost that took place in
the last 9 years, say Rs.200/- for all cinema halls across the state. Within
that, the theatre owners can be allowed to fix the ticket prices depending on
the demand and show timings. The film industry does not need any tax exemption,
which is actually limiting creativity and forcing compromises to obtain ‘U’
certification from censor. The Government can charge a uniform tax on the film
tickets and allow the theatres to fix the ticket prices based on the demand. In
the same way, the Government can de-control the number of shows and allow as
many shows from morning till 2 a.m. and let the theatres run the shows
depending on the demand.
The flexi ticket pricing brings in price dynamics to the sale of
tickets. For first three days, hard core fans, who are willing to pay these
ticket prices, shall view the film. The others, who cannot afford, can wait
until Monday or Tuesday and when prices are reduced, watch in theatres at
lowest possible prices ranging from Rs.60 to Rs.100/-. In Mumbai, a movie
ticket, which was sold for Rs.500/- on Friday night, sells at Rs.90 on Monday
morning 11 a.m show. This plan will
benefit the people who wish to watch in a multiplex at lowest cost. Flexi
ticket pricing will also enable the theatres to charge low for a small budget
film and attract more audience. Free trade must be encouraged in every field,
including cinema.
As regards the naysayers that increase in ticket price will lead to
increase in piracy, which is already rampant, increase in the prices of any of
consumable (including liquor) has not diminished the demand and hence hardcore
movie viewing in theatres shall continue as it is in rest of the country, where
the ticket prices are much higher.
