Costing Project on Movie Theatre

PRESENTED BY1.Sunil Garg2.Amit Sobhani3. Vikram Pitta4. Upasana Varma5.Jaydeep Mandavia6.Jayesh Desai

CONTENT

SR NO CONTENT 1. Introduction 2. Literature Review 3. Cinemax Vs Multiplex  4. Some Facts 5. Various Process 6. Costing 7. Conclusion

INTRODUCTION

INTRODUCTION

Multiplex has multiple screen movie theater complex which also offers lifestyle shopping.

Multiplex has upgraded the movie watching experience in Indian cities

The structure of the multiplex mall explores the consumer psychology, where customers who come with the intention of watching a movie are made to pass all the floors in the shopping mall. It increases the possibility of their making some impulsive purchases.

Contd…INTRODUCTION

New multiplexes are granted a five-year tax subsidy by state governments:

entertainment tax is waived for the first three years, and there's a 50 per cent and 25 per cent waiver for the fourth and fifth years respectively (by which time capital costs are more than recovered).

Single-screen theatres pay 45% entertainment tax.

Contd…INTRODUCTION

• People point out our tax subsidies, but they overlook multipex expenditure on land leases, equipment of international standards and heavy maintenance costs. Above all, not all films do well, so it's the business of averages.

We are not averse to sharing our profits but we also have to be financially viable at the end of the day.

Contd…INTRODUCTION

LITERATURE REVIEW"Multiplexes" provide a

quality viewing experience and are generally located around shopping malls.

Cineplexes are poorly maintained as the owners find it difficult to upgrade their facilities, due to lack of organized finance.

Contd…Risks And Concerns

Faced By Multiplexes And Cineplexes

• Alternative Entertainment Avenues : Movies compete for customer attention with other forms of entertainment like DVDs, TV etc.

• Slowdown In Content Supply : Multiplexes/ Cineplexes thrive and have to depend on the better supply of films from producers.

Contd..Risks And Concerns

Faced By Multiplexes And Cineplexes

• Single Screens Are Going To Die Soon:

Multiplexes are preferred due to factors like crowd and presence of shopping malls.

• Multiplex/Cineplex Business Is Affected By Piracy: which seeped into every sphere of the business that has led to deep losses.

Contd… Why Are Multiplexes Preferred Over Single

Screens For Movie Viewers?MULTIPLEX CINEPLEX

1.Multiplex Enjoy Rebates

1.Single Screen Doesn’t.

2.They offer extra facilities.

2. No Extra Facilities.

3.They offer Choice In Different Movies.

3.No choice in different movies.

Contd…Future Of Single Screens

No doubt the road ahead for single screens is very challenging.

Single theater are growing well in smaller towns.

• Demand Side - Strong pull:

Production of Hindi movies.

People willing for the quality.

Contd…LITERATURE REVIEW

How do you find the food items of multiplexes?

cheap

reasonable

expensive

226

2 Net

Telephone

Purchase222

What type of ticket booking is convenient ?

6

Which factor do you take in consideration ?

7

15

62

Some Facts

yes no

Are ticket prices of multiplexes acc. to quality ?

Are ticket vendors polite?

yes no21 9

28

2

Which medium do you prefer ?

multiplexes cineplexes dvds television

1 221 6

Some Facts

Series 1

What are the improvements needed in Cineplex ?

36

What are the improvements needed in Cineplex ?

36

616

lack of transport too expensive distance to travel

4

13 13

Which factor prevent you to see a movie in multiplexes ?

Some Facts

Which of the following benefits of multiplex do you agree with?

variety of films

food court

crowd

visual quality

62

517

lower class middle class upper middle class

upper middle class

0

12 162

Which class likes to go to multiplexes ?Some Facts

yes no

22

Are you able to spend money offered by multiplexes ?

Is multiplex a better option than Cineplex?

yesno

20

10

8

Some Facts

Process of Film Making The 12 stages..

1.The idea

2.Development finance

3.Script development

4.Packaging

5.Financing

6.Pre-production

7. The shoot

8. Post production

9. Sales

10. Marketing

11. Exhibition

12. Other windows

• The Central Board of Film Certification (popularly known as the Censor Board) is a Government of India regulatory body and censorship board of India controlled by Ministry of Information and Broadcasting.

• It reviews, rates and censors motion pictures, television shows, television ads, and promotional material. It regulates the public exhibition of films in India under the provisions of The Cinematograph Act 1952.

Films can be publicly exhibited in India only after they have been certified by the Central Board of Film Certification

OBJECTIVES• The medium of film remains responsible and sensitive to the

values and standards of society.• Artistic expression and creative freedom are not unduly curbed• Certification is responsive to social changes• The medium of film provides clean and healthy entertainment

and• As far as possible, the film is of aesthetic value and cinematically

of a good standard

CENTRAL BOARD OF FILM CERTIFICATION

The Cinematograph (Certification) rules, 1983 have laid dowhe Procedure that a producer must go through, to get a film certified, the fees one has to pay and other materials that should be submitted.

The film and other material have to be submitted to the regional officer of the concerned regional

centre. On receipt of all the film materials, requisite fees

and written matter required under the rules, the regional officer will form an Examining

Committee to view the film.

:

Categories Amount of FeeFeature Film in Hindi/ English Rs. 20,000/-

Feature Film in all other languages

Rs. 10,000/-

PROCESS OF FILM CERTIFICATION

Categories

Money Flow In Film Industry

MULTIPLEX VS

CINEPLEX

COSTING

EXAMPLE:PVR CINEMAS

PVR Cinemas, one of the leading cinema chains in the country with over 108 screens in 26 different cinemas spread across multiple locations.

State of the Art Technology that enhances the whole experience of watching a movie -the great picture quality, sound system etc.

Costing for a Multiplex

Sultan Of India‘s Multiplexes

Ajay BijliChairman AND Managing Director,

PVR Ltd.

One of the most important factors for Brand Loyalty.PVR offers “HIGH PRICE discrimination” forvarious segments of its customers.In addition it has come up variety of schemes.

Flagship ProductPrice ranges between Rs.100-200 Excellent viewing value to middle market audience.

PVR Premiere screens, which would be high end luxury screens with an ATP beyond Rs.200.Middle upper market and premium location in metros

PVR Talkies which have an ATP below Rs 100.Aimed at value conscious market in tier 2 towns

Price……PVR CINEMAS

PVR CINEMAS

PVR CINEMAS

PVR CINEMAS

PVR CINEMAS

Live Costing for a Cineplex

*Plaza is a cinema hall in the Dadar locality of Mumbai.*It was bought by Sakharam Govindji Keni from a Parsi owner and is given on lease to V Shantaram in the 1930s. In 2005V. Shantaram trust sold their rights to run the cinema to Himani & Co*It was one of the three cinema halls where films seventh Asian Film Festival were screened. It is an important theater for the screening of Marathi cinema. *It was one of the 13 places where 1993 bomb blasts occurred in Mumbai on 12 March 1993.10 persons died and 37 were injured.

• Premises is on Rent / Lease - Owner • Who decides the Ticket Price - Owner ( completely)

• Theatre has a seating capacity of 664 which includes Balcony -111, Executive class -369 and Stall - 184

• Food stalls in house ? On rent or on Profit sharing - Theatre own• If all shows gets Cancelled, what is the loss for 1 day ? If 3 hours movie - Rs. 60000 x 4 no. of shows = Rs. 240000 If 2.20 hours movie - Rs. 60000 x 5 no. of shows = Rs. 300000Break Even Point• Minimum How many Tickets to be sold in a month to cover the cost? Weekends - Fri, Sat and Sun - 80% Weekdays - Mon, Tues, Wed and Thurs – 40%

PLAZA CINEMA,DADAR

Distributor Charges % of weekly collection

1st week 50%2nd week 40%3rd week 30%

Tickets Marathi Hindi

Balcony (1st Class) Rs. 100 Rs. 150

Executive (2nd Class) Rs. 90 Rs. 120

Stall Rs. 80 Rs. 100

Fixed Ticket Price

Contd…PLAZACINEMA,DADAR

Distributor Charges

Particulars Amount

Fixed Cost Salaries & Wages Security Guard (7 person X Rs. 15000) Rs. 1,35,000

Manager (2 person, 1st - Rs. 25000, 2nd - Rs. 20000) Rs. 45,000

Operators (2 person X Rs. 13500) Rs. 27,000

A.C. Operator (1 person X Rs. 15000) Rs. 15,000

Accountant (1 person X Rs. 20000) Rs. 20,000

Peon / Clerk ( 1 person X Rs. 8000) Rs. 8,000

Box Office Staff ( 4 person X Rs. 9000) Rs. 36,000

Housekeeping staff ( 10 person X Rs. 15000) Rs. 1,50,000

Depreciation: Premises Rs. 1,50,000

Projector & Operating system Rs. 13,500

Sound System (11 speakers) Rs. 11,500

Amplifiers (6) & Processor Rs. 28,500

Office expenses Rs. 9,500

Cost Sheet of Plaza Cinema (Monthly sold– 42000 tickets)

Contd…

Particulars Amount

Variable cost Electricity Rs. 4,20,000

Flex Banner Printing (Rs. 8000 X 2) Rs. 16,000

Repair & Maintenance Rs. 15,000

Distributor charges (45%) Rs. 17,10,000

Entertainment Tax Rs. 3,90,000

Total cost Rs. 32,00,000 Profit Rs. 8,50,000 Sales Rs. 40,50,000

Contd… Cost Sheet of Plaza

Cinema(Monthly sold– 42000 tickets)

Particulars Amount

Income Rs. 350000

Expenses - Material Rs. 125000

Canteen staff salaries(Rs. 9000 X 8 person) Rs. 72000

Profit Rs. 1,53,000

Other Income to the Plaza Cinema(Monthly)

Food stall in-house

Particulars Amount

Two wheeler (Rs. 20 per wheeler ) Rs. 25,000

Four wheeler (Rs. 30 per wheeler) Rs. 15,000

Total Rs. 40,000

Parking Charges

CONCLUSION Mostly upper class and

upper middle class prefer multiplexes

Multiplexes provides luxurious facilities.

Better audio and visual quality

Lower middle class prefer cineplex because it is affordable

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