PVR sees superplexes as next blockbuster concept in cinema business

Multiplexes altered the cinema business in India, providing multiple screens under one roof for theatre-goers. Multiplex operators, such as PVR, are now taking the multi-screen experience to the next level with superplexes or properties that have at least 10 screens under one roof. 

A regular multiplex typically has 4-5 screens per property. Larger ones may go up to 7-8 screens at a single location.

PVR, on Thursday, unveiled its first 12-screen superplex in Thiruvananthapuram and the fourth in the country, indicating that it has plans for more such giant properties. The three existing superplexes are located at Delhi, Noida, and Bengaluru with number of screens between 12 and 15.

"Five more superplexes will come up in Haryana, Delhi, Karnataka, Kerala and Uttar Pradesh by next year," Pramod Arora, chief growth and strategy officer, PVR, said in a conversation with Business Standard. The company is also looking at more markets, such as Gujarat in the west and Telangana in the south, to set up superplexes.

Inox, which is in the process of merging with PVR, also has three giant multiplexes or megaplexes of its own. The one in Mumbai has 11 screens, while the two others, located in Lucknow, have 10 screens each, company executives said. “With megaplexes or superplexes, the cinema chain can position the property as a leisure destination with multiple formats under one roof. This takes the theatre-going experience to another level,” said Rajender Singh Jyala, chief programming officer at Inox Leisure.

The investment into setting up a superplex or megaplex is double of a regular multiplex, said Arora. While a regular multiplex may cost a theatre chain around Rs 25-30 crore per property, said Arora, a superplex property may cost an operator around Rs 45-60 crore per property.

The reason for this is the amenities that are made available at a superplex, including IMAX screens, Luxe auditoriums, and premium dining and seating arrangements. The ticket price, for instance, may easily be at least 30-50 per cent more than the pricing at a regular multiplex, according to experts, given the premium theatre experience at a megaplex or superplex.

"The theatre chain also has to work closely with the real estate developer to ensure it gets the right property with the right location and amenities for a superplex," said Arora.

Identification of the right catchment areas, in particular, becomes critical when setting up a superplex or megaplex, according to experts. "For instance, the southern markets are vibrant film markets. So, setting up a superplex makes sense there, since movie-goers will be willing to spend at these locations,” said Shyam Shroff, chairman of Mumbai-based film distribution company, Shringar Films.

According to Arora, PVR is targeting a combination of markets in the south and the north, followed by the west and the east for setting up its superplexes.