Sep 25, 2001|
Multiplexes: Entertainment for real
Multiplexes, a new concept in movie exhibition is fast catching up in India. Multiplex embodies the luxurious amenities of the modern day theatre, multiple screen choices, state of the art technology, ergonomic seating, eye-catching architecture and top of the line additional recreation facilities like cafes, gyms, shopping malls and food courts.
There are 13,000 movie theaters in India, the second largest in the Asia pacific region. However, that is insufficient to meet the entertainment needs of the country’s population who can afford watching movie atleast once in every three months. As against this China, which ranks first in terms of number of screens in the Asia Pacific region, has around 67,000 screens on last count.
High entertainments taxes in India have, till recently have adversely affected the economics of running a movie theatre and hence a major disincentive for expansion of theatre capacity in the country. The entertainment taxes in India range anywhere between 50-120% varying across different States. The prevailing rate of entertainment tax in Maharastra is 37.5% of the ticket revenue.
The state government of Gujarat, Rajasthan and Uttar Pradesh has passed a resolution exempting multiplexes, commissioned before FY02, from entertainment taxes for next 5-7 years. The Maharastra also recently announced complete waiver of entertainment tax for three years and partial waiver for another two years for new multiplexes.
Added to that there has been a relaxation in the import duties of film equipment in the last budget, which has also led to acceleration in multiplex projects coming up in the country. Last year itself around 40 multiplexes were built in India and more than 600 are in the pipeline. The new entertainment tax concession for multiplexes given by the Maharashtra government is expected to spur fresh investments worth Rs 5 bn in the sector over the next two years, adding an estimated 200 screens and an additional 50,000 cinema theatre seats. The concept of multiplexes is not only limited to metros, it is fast spreading to smaller towns and metros like Ghaziabad, Noida, Amritsar, Lucknow, Meerut and Agra where a number of projects have been announced.
The expansion of multiplexes is destined to drive box office spending in the Asia Pacific region in the next five years. Multiplexes are destined to become one-stop shops that promise entertainment. While cinema halls may have been the pivots around which the phenomenon of film watching has sprung up, multiplexes now offer fantasy on a scale surpassing the celluloid.
More Views on News
Aug 14, 2017
The management believes that GST will aid the advertising spends in the long-run.
Apr 26, 2017
Should you subscribe to the IPO of S Chand and Company Limited?
Jun 21, 2017
Should one subscribe to the IPO of GTPL Hathway Ltd?
Aug 1, 2016
Zee Entertainment has announced its results for the first quarter of the financial year 2016-17 (1QFY17). The company has reported 18.5% YoY growth in sales and a 13.7% YoY growth in profit after tax.
Feb 3, 2016
Zee Entertainment has announced the third quarter results of financial year 2015-2016 (3QFY16). While the topline grew by 17% YoY, bottomline fell 11% YoY during the quarter.
More Views on News
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 10, 2017
Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 10, 2017
Bitcoin hits an all-time high, is there more upside left?
Aug 16, 2017
Ensure your financial Independence, and pledge to start the journey towards financial freedom today!
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407