Bengaluru: The Multiplex Association of India (MAI) urged the Karnataka government on Thursday to withdraw its order capping movie ticket rates in all theatres in the state at Rs 200. "We urge the Karnataka government to withdraw its notification of putting a cap on ticket prices for all cinema theatres in the state at Rs 200 as we believe it is a retrograde and unfair step against the interests of film industry and people," MAI president Deepak Asher said in a statement here.
He said MAI is evaluating options at its disposal to protect the interests of its members and other stakeholders. Citing reasons for withdrawal of notification, Asher said the move to cap ticket prices is extremely investor unfriendly and will stop the growth of new multiplexes in Karnataka. In addition, it would also lead to many existing multiplexes to consider shutting down because of financial unviability, he said. "The flexibility to decide ticket prices enable multiplexes to optimise occupancies and hence remain financially viable," he said.
Asher also argued that charging relatively higher prices for peak shows like evening shows on weekends help multiplexes charge lower prices on non-peak shows, like morning shows on week-days.
The order to exempt only 10 per cent of the total seats of the cinema having Insignia, Gold Class, VIP seats from the price cap, will deprive the people of Karnataka from watching a movie in comfortable and luxurious seats as multiplex operators will not invest in these type of seats going forward, he contended.
"The two largest multiplex chains in India, which together account for around 50 per cent of multiplex screens in the country, have a combined net profit margin of less than 5 per cent, not even sufficient to provide any return on capital," Asher claimed.
