Multi flex

SPECIAL REPORT

 Macro optimism
In 2006, domestic box office revenues grew by about 21 per cent, as blockbusters like Dhoom 2, Lage Raho Munnabhai, Krrish, Fanaa and Rang De Basanti amassed over Rs 300 crore. At present, the domestic box office market is pegged at Rs 6,400 crore, and is expected to grow at a compounded rate of 13.5 per cent.

 At this rate, the market would double in size to Rs 11,900 crore by 2011. With the multiplex boom, the average ticket prices (ATPs) on an all-India basis have grown from Rs 20 to Rs 35 per ticket, and close to Rs 100 per ticket in metro cities.  On the flipside, it is expected that the share of box office revenues will reduce in the overall entertainment business, considering the growth of home video and exhibition of films over broadcast networks.  However, the segment will remain strong, contributing nearly 70 per cent, due to increasing demand in Tier II and Tier III cities where multiplexes are just being rolled-out.