UFO Moviez bets on in-cinema advertising revenue

Even as its digital cinema distribution network continues to grow, UFO Moviez India Ltd is betting big on its in-cinema advertising revenue in near future. The company, which is coming up with an initial public offering (IPO) on April 28, is expecting advertising to be the bulk of its revenue share.

For this, the company is looking at various ways to enhance the same. For instance, UFO Moviez has been exhibiting cinema-on-wheels for free on pilot basis in parts of Maharashtra and UP. Calling it 'Caravan Talkies', the cinema-on-wheels exhibits longer length ads and then movie for free in market places.

"In multiplex and single screens, the ad length is three minutes. But Caravan Talkies can allow us to experiment with longer length of ads, even up to 20-25 minutes," said Sanjay Gaikwad, managing director, UFO Moviez.

The company, which also provides digital infrastructure to cinema exhibitors and distributors, is coming up with a Rs 600 crore issue, which will open on April 28, 2015.

"The modernised Caravan Talkies concept is targeted to generate additional ad-revenues during the screening of the cinema. We have currently 24 Caravan Talkies running all around Maharashtra and Uttar Pradesh. We plan to rollout in other parts of the country also

In near future, UFO Moviez looks to enhance the current Rs 100 crore revenue from in-cinema advertising. "We want to have multi-fold increase in advertisements revenues. For this, we will focus on Caravan Talkies and Club Cinema," Gaikwad added.