Freemium vs premium at the cinemas: PVR borrows an app hack for its theatres

NEW DELHI :PVR Inox Ltd has rolled out an ad-free viewing feature at some of its ‘premium luxury’ cinemas for moviegoers who can’t be bothered to sit through a bunch of advertisements at the theatre.

The feature will be exclusive to up-market cinemas designed as social and community experiences combining dining and lounge options. PVR Inox, India’s leading multiplex chain, has launched this feature in about 15 theaters across Delhi, Mumbai and Bengaluru this month as part of the first phase of its rollout.

“The idea had been brewing for a while and is based on feedback from consumers who visit our premium cinema formats and are time-conscious,” Renaud Palliere, chief of The Luxury Collection and Innovation, PVR Inox, told Mint.

“We decided to take this step to design an experience that is appropriate for and desired by them, whereby by removing advertisements we ensure they visit the cinema only for what they’ve come for, which is to watch the film.”

No ads, so what?The usual template at a PVR Inox cinema is to run around 30 minutes of advertising as well as trailers of upcoming films, Palliere said.

There will be no ads at select premium cinemas, although PVR will play 10-12 minutes of trailers and what Palliere calls information on long-term brand partners such as Kotak Mahindra Bank, insisting that these do not fall under the regular category of advertisers.

Ticket prices at these cinemas will range between ₹650 and ₹1,000 per seat.

Apart from the higher pricing, removing the ads allows for more screen time, which PVR expects would make up for the lost ad revenues.

“The benefit of removing advertising content is that we’ve emptied time slots, enabling us to add at least one full show per day,” Palliere said. “We expect to exceed advertising income through more admissions, which would also translate into higher F&B (food and beverage) sales, which we see as a big win.”

Ticket rates across properties are dependent on the day of the week, show timing and the film, he added.

Palliere expects the luxury theater format to account for 20% of PVR Inox’s overall screen inventory in the next few months, from about 14-15% now.

Where are the audiences?

To be sure, the move comes at a time when movies, especially Hindi films, are performing way below par at the box office, with trade experts saying PVR would need to be able to draw in enough audiences in the first place.

“When content is sub-standard, audiences can see through such tactics. The need of the hour is to reduce ticket pricing across the board,” said a trade analyst, declining to be named.

Over the past few months, high-profile titles such as Bade Miyan Chote Miyan, Maidaan, Yodha, and Fighter have proven to be box-office duds.

Palliere, however, defended the move, insisting that audiences frequenting premium cinemas welcome such features and desire to be pampered.

“Luxury is a resilient format,” he said. “And while the film in question is not incidental, it doesn’t have an adverse impact (on the business) even if it doesn’t turn out to be great. People come for the whole package that goes beyond the movie.”