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Multiplexes' revenue from convenience fee rises as online ticket sales grow

Data analysed by SBICap Securities show revenue from convenience fees has grown at a compound annual rate of 85 per cent for multiplex chain operator Inox Leisure and 58 per cent for PVR

Though cost per ticket is likely to go up by ~150, the changing dynamics of the content ecosystem is believed to have driven the multiplex player towards taking the leap
PVR’s income from convenience fees was Rs 33 crore in 2015-16 and Rs 130 crore in 2018-19. At Inox, it grew in this period from Rs 8 crore to Rs 50 crore.

Income from convenience fees, a charge taken from customers when they book their tickets over a digital platform, has grown at a rapid pace for multiplex chains in the past four years as the share of online ticket sales has grown steadily.   It assumes significance as advertising revenue growth has been weak. Data analysed by SBICap Securities show revenue from convenience fees has grown at a compound annual rate of 85 per cent for multiplex chain operator Inox Leisure and 58 per cent for PVR.   Anshul Agrawal, analyst with SBICap, noted: “PVR’s convenience fees have ...