Does multiplexes have room to grow, analysing pvr,inox and adlabs .

rakeshseth's picture

Indian entertainment industry came a long way in past decade , from being highly unorganized money spinning machine to a some what organized professional corporate culture. I still remember movies being distributed on those films and a guy shuffling movie reels among different theatre so that they can play same movie with 1 copy on different screens. If the guy doesn't show up on time the movie takes a break.

PVR was kinds first one to get into multiplex business and followed by INOX and adlabs ( reliance media works ). All over the world debate is hot if the movie theatre business will survive in long run. one due to bigger and better televisions and home theater systems and secondly content provider selling movies direct to home. That would be good for movie producer but can be really bad for distributors and theater operators. That will surely happen but not in next 5-8 years at least in India. and that's where screens like IMAX makes a difference and pulls audience off of their home into theater.

What lies for multiplex operators in 2010 ?

Indians like to socialize and and get entertained in family setting and movie going is a part of it.If bollywood film producers will keep making good movies I have no doubt that multiplexes will do good. Can they grow further ? Yes . There is huge scope for innovation and growth. India is country who loves cricket. Think about a sunday cricket match on big screen with 1000 others. It will be like sitting in a real stadium. There are many other ideas to make the business grow..

What about profitability ?
Recently there has been a deal with multiplex operators and film producers and that limits what multiplexes can earn.But once a movie watcher is inside the theater building, a lot of cash can extracted out of pocket that all goes into multiplex profits. Like foods and drinks that they sell for 200% profit compared to streets.

PVR :  26 cinemas with a total of 108 screens.
INOX :
30 multiplexes and 109 screens
BIG cinema:


Recent Comments and talks

What is AskDalal ?

AskDalal is a investment blogging portal dedicated to Indian investment community , where every blog answers a question.It may be stocks, bonds,commodity, real estate or anything else.Post your blog title  or a question, community will do research and answer the question to give you your own research report.It is 100%free , no registration is required to browse and ask questions.It's great for writers looking for article topic,and cool for investor looking for answers.

>>> faq

Top Contributors

UserPoints
suniljain10,440
admin2,990
rahul das2,460
anilmehta1,710
dipak1,540
rakeshseth1,500
himesh1,350
stockguru1,110
shah1,060
bharat_vora1,040

Become Askdalal Research Analyst

Are you an MBA (finance) students, economics students, or journalist with broad interest in stocks, investing and finance. Do you want to polish your skills before getting into job market ? Come join askdalal as Research Analyst.Email your resume to tripti.shah@askdalal.com.

If your resume is impressive you will get chance to show your talent,polish your skills and earn money along the way. At the convenience of sitting at your home computer. See rules for askdalal investment analyst.

Latest Dalal

  • rosenjack13
  • bangalore.scrap
  • bipin1987310
  • mohammed ilyas
  • mehta.a10