1. 1. CINEMA IS YOUR NEW NEIGHBOUR MINICINEMA a Kauphy Talkies initiative PROPOSAL FOR
2. 2. % age of Leased Theatres In TelanganaCURRENT ISSUES FACED BY SMALL PRODUCERS THEATRE LEASE SYSTEM1 THEATRE CAPACITY, OCCUPANCY and PRICING2 THEATRE ALLOTMENT3 THEATRE REACHABILITY4
3. 3. % age of Leased Theatres In TelanganaTHEATRE LEASE SYSTEM This system is making the middle man make more money than the theatre owner, which can result sooner or later in owners preferring to convert their theatre into commercial complex. ( This is a serious threat to the Industry) In Last few years we are witnessing more closure of theatres but have not seen any new single screen theatre opening.
4. 4. HYDERABAD ADILABAD NIZAMABAD KARIMNAGAR MEDAK HYDERABAD MULTIPLEX WARANGAL KHAMMAM NALGONDA MAHBUBNAGAR RANGAREDDY TOTAL 118 LEASED 110 OWNER 8 TOTAL 25 LEASED 19 OWNER 6 TOTAL 48 LEASED 37 OWNER 11 TOTAL 41 LEASED 32 OWNER 9 TOTAL 62 LEASED 47 OWNER 15 TOTAL 49 LEASED 38 OWNER 11 TOTAL 54 LEASED 53 OWNER 1 TOTAL 68 LEASED 56 OWNER 12 TOTAL 20 LEASED 15 OWNER 5 TOTAL 30 LEASED 23 OWNER 7 TOTAL 78 LEASED 78 OWNER 0 TELANGANA LEASED VS OWNER RUN THEATRES 593 508 85 86% 14% LEASED vs OWNER
5. 5. THEATRE CAPACITY, OCCUPANCY and PRICING Majority of the single screen theatres have huge capacity with more than 700 seats. Most small budget movies are not able to fill in the big capacity theatres and in multiplexes, Ticket price keeps the audience away.
6. 6. A Look at the Occupancy percentage for last 7 months on RTC x Road area for Reference : 1. The occupancy are calculated on the Gross Value 2. The Average occupancy in this are is approx - 25% 3. The average rentals charged are 20% of House Full Value, if the movie maintains average of 40% then the producer may get some share other wise he will end up feeding the theatres. 4. SIMILAR IS THE SITUATION IN MOST OF THE THEATRES. Theatre SEP OCT NOV DEC JAN FEB MAR Devi 52% 41% 35% 38% 35% 28% 34% Mayuri 10% 9% 21% 8% 5% 6% 5% Sandhya 35 16% 48% 48% 30% 44% 49% 30% Sandhya 70 37% 51% 22% 14% 31% 27% 23% sapatagiri 15% 19% 19% 25% 17% 12% 13% Shanthi 17% 50% 17% 31% 24% 6% 17% Shudarshan 39% 30% 17% 26% 65% 36% 26% Usha mayuri 11% 6% 9% 5% 4% 5% 3% Grand Total 25% 33% 24% 23% 29% 22% 19%
7. 7. A Look at % age of Rent charged by Exhibitors compared to their House full capacity Sl Centre Theatres H.F. Per Week RENT % age of No Names Names Gross Gross Nett PER WEEK Rent 1 RTC X ROAD SANDYA 70 MM 59,641 1669948 1435469 342000 24% 2 ECIL TALLURI 43,740 1224720 1052186 288000 27% 3 MOOSAPET ASIAN LAXMIKALA 54,065 1513820 1301063 298000 23% 4 DILSHUKNAGAR RAJADHANI COMPLEX 33,436 936208 803814 216000 27% 5 KUKATPALLY MALLIKARJUNA 45,387 1270836 1091885 270000 25% 6 SECUNDERABAD PRASHANTH 44,216 1238048 1063659 235000 22% 7 AMEERPET SATYAM 63,911 1789508 1538394 333000 22% 8 AMBERPET SRI RAMANA COMPLEX 54,227 1518356 1304968 225000 17% 9 MADHAPUR HI-TECH 27,876 780528 669794 160000 24% 11 NACHARAM VYJAYANTHI 35,627 997556 856627 225000 26% 12 VANASTHALIPURAM SUSHMA 53,354 1493912 1283925 180000 14% 13 MALKAJGIRI RAGHAVENDRA COMPLEX 37,297 1044316 896881 162000 18% 14 KARMANGHAT NAGENDRA 34,317 960876 825050 171000 21% 15 MEHIDIPATNAM AMBA 36,296 1016288 872753 225000 26% 16 LANGERHOUSE PRATHAP 40,268 1127504 968495 225000 23% 17 KOTHAPET MAHALAXMI 35 MM 23,439 656292 562843 153000 27% 18 UPPAL RAJYALAXMI 40,049 1121372 963216 162000 17% 19 IBRAHIMPATNAM SANTHOSH 28,023 784644 673337 108000 16% 20 ALWAL NARTHAKI 36,448 1020544 985578 121000 12% 21 IDA BOLLARAM JYOTHI 11,876 332528 320480 63000 20%
8. 8. A Look at %age of Rent charged by Exhibitors. Districts Centre Theatres H.F. Per Week RENT % age of Gross Gross Nett PER WEEK Rent WARANGAL GEMINI 15,148 424144 362994 75000 21% HANMAKONDA ASHOKA 38,716 1084048 931085 162000 17% KAZIPET BHAVANI 24,126 675528 579403 135000 23% MAHABUBABAD VENKATRAMA 16,097 450716 430851 63000 15% ST.GHANPUR MAHALAXMI 16,221 454188 441041 57500 13% THORRUR RAMAKRISHNA 14,110 395080 393330 56700 14% MULUGU THIRUMALA 12,140 339920 338170 56700 17% MARIPEDA LAXMI 9,138 255864 254114 56000 22% PASARA MEHAR RANGA 9,390 262920 261170 38500 15% DORNAKAL SRI LAXMI 6,814 190792 189042 42000 22% PALAKURTHY THIRUMALA 6,300 176400 174650 42000 24% KARIMNAGAR SHIVA 36,518 1022504 878160 126000 14% JAGITYAL SRINIVASA 20,218 566104 537344 72000 13% GODARIKHANI SRINIVASA 36,250 1015000 871700 99000 11% SIRICILLA VIMAL 20,238 566664 548807 65000 12% PEDDAPALLY SRINIVASA 23,945 670460 649694 81000 12% VEMULAWADA SIVARAMAKRIS 8,380 234640 232890 70000 30% MAHABUBNAGAR SRINIVASA 28,738 804664 696705 108000 16% WANAPARTHY VENKATESWARA 12,407 347396 345646 59500 17% GADWAL VENKATESWARA 19,451 544628 542878 91000 17% NAGARKURNOOL SRI RAMANA 10,968 307104 305354 56700 19% ACHAMPET SAI RAM 14,390 402920 401170 63000 16% KOTHAKOTA SRI DEVI 7,146 200088 198338 56700 29% AMANGAL VENKATESWARA 6,768 189504 182678 57500 31% KOLLAPUR VENKATESWARA 5,411 151508 149758 38500 26% IEEJA SRI MADHAV 5,092 142576 140826 44100 31% MADDUR SATYANARAYANA 7,510 210280 208530 45500 22% KHAMMAM ADITYA 47,078 1318184 1132702 153000 14% KOTHAGUDEM MAHESWARI 19,051 533428 520952 72000 14% BHADRACHELA UDAYBHASKAR 20,407 571396 571396 112000 20% SATHUPALLY BALAJI 19,232 538496 536746 112000 21% MADHIRA VASAVI 13,580 380240 378490 61250 16% DAMMAPET BALAJI 5,860 164080 162330 35000 22% NEREDUCHERLA VENKATRAMA 11,610 325080 323330 50400 16% YADAGIRIGUTTA LAXMI 8,170 228760 223910 42000 19% MALL LAXMI 9,093 254604 252854 45500 18% CHENDOOR SATYANARAYANA 3,640 101920 100170 38500 38% MANCHIRYAL LAXMI 21,696 607488 576777 81000 14% BELLAMPALLY RAMAKRISHNA 17,488 489664 468253 72000 15% NIRMAL NARAYANA 27,714 775992 743213 112500 15% BHAINSA KAMALA 24,023 672644 670894 115500 17% SIRPURKAGAZ VENKATARAMANA 17,603 492884 491134 122500 25% KAMAREDDY PRIYA 70 24,108 675024 646254 81000 13% BODHAN VENKATESWARA 19,610 549080 533574 81000 15% ARMOOR BRINDAVAN 18,564 519792 497240 81000 16% BHEEMGAL SRINIVASA 4,093 114604 112854 45500 40% MEDAK GANGINENI 15,832 443296 428898 72000 17% SIDDIPET VENKATESWARA 21,924 613872 587530 72000 12% SANGAREDDY RUKMINI 22,627 633556 601617 85000 14% TANDUR LAXMI 22,533 630924 611910 90000 15% CHEVELLA VENKATESWARA 11,213 313964 312214 50750 16% Rent is charged depending upon the capacity whereas todays situation capacity is not related to Occupancy.
9. 9. A Look at % age of audience visiting theatre *Average Ticket Price is Taken as Rs. 50/- Telangana Big Budget Medium Medium Budget Low Budget 3.5 Cr Population 20.00 Lakh Audience 10 Lakh Audience 50 Thousand audience Gross 10Cr. * Gross 5 Cr* Gross 25 Lakhs* 5.7% 2.85% 0.14% Even if Low Budget cinema can reach out to 1% of Telangna Population the gross collection per movie will come to Rs. 1.75 Cr
10. 10. Some Gross Collections and Producer Share Yamaleela 2 : Movie played 39 Theatres Collected a Gross of 90 Lakhs and The producer got a share of just Rs. 5.00 Lakhs. Dongata : Collected a Gross of 83 Lakhs in 69 Theatres with a Share of 23 Lakhs to the Distributor. Dochay: Gross 4.38 Cr with a producer share 1.25 Share. Movie Played in 180 Theatres. Good Movies which suffered Because of the System
11. 11. % age of Leased Theatres In TelanganaTHEATRE ALLOTMENT3 Cinema halls allotment between BIG starrer movies & small budget movies is a big concern. Majority of the cinema halls are blocked by big starrer movies and small budget movies are assigned the left over screens, and rarely get good theatres in proper locations. The Number of Movie Releases are going up year by year, If Theatres can become proactive and accommodate more movies it may result in production activity going up. YEAR STRAIGHT DUBBING TOTAL 2011 120 123 243 2012 127 97 224 2013 178 92 270 2014 194 82 276 2015* 68* 32* 100* * Till Date
12. 12. Movie Category Movie Name Cast Single screen BIG STARRER S/O SATYAMOORTHI Allu arjun 194 BIG STARRER LION Balakrishna 179 BIG STARRER DOCHEY Naga chaitanya 155 BIG STARRER GANGA lawrence 103 BIG STARRER DHONGATA Lami Manchu 76 BIG STARRER UTTAMA VILLAN Kamal harsan 70 BIG STARRER TIMMIRI Simbu 52 SMALL BUDGET KHAI RAJA KAI Joshravi 34 SMALL BUDGET BUDUGU Laxmi Manchu 30 SMALL BUDGET OK BANGARAM Dulquer salman 25 SMALL BUDGET AVUNU - 2 Ravi Babu 22 SMALL BUDGET ORI DEVUDOY Rajeev Saluri 18 SMALL BUDGET NUTHULO KAPPALU Rajendra prasad 14 SMALL BUDGET VARADHI Kranthi 14 SMALL BUDGET NALO OKADU Siddarth 14 SMALL BUDGET ALOUKIKA Manoj Nandim 11 SMALL BUDGET DEE ANTE DHEE Srikanth 5 SMALL BUDGET DAGUDU MUTHA DANDACOR Rajendra prasad 4 SMALL BUDGET FATHER Kamal Kamaraju 3 SMALL BUDGET RAJMANDRI KI 50 KM Hemanth 1 Sample of screens allocated for big starrers vs small budget
13. 13. % age of Leased Theatres In TelanganaTHEATRE REACHABILITY4 Hyderabad city has expanded and the population is spread across the length and breadth of the city. New areas like Manikonda, Attapur, Gachibowli, Beeramguda, Nagole etc., are densely populated and there are no single screen theatres in these areas. In todays scenario, opening a single screen stand alone theatre is not commercially viable.
14. 14. OTHER ISSUES TROUBLING THE PRODUCERS Digital Charges by UFO /QUBE : On a average Rs.10,800 is charged per week per theatre and irrespective of a movie hit or flop, Digital company make around Rs.84.00 Cr per annum. Digital Disadvantages 1. Uniform Prices B & C centers the digital charges are same as A Centers. 2. Because of not able to bear digital charges Few Theatres in C Centers are closed as their weekly Gross does not exceed Rs. 50,000/- per week 3. Because of Digital the movie is releasing in A, B & C centers, and this resulted in limited window for movie release and exhibitors are not preferring to play the movie in 2nd or 3rd week.
15. 15. OTHER ISSUES LIMITATION OF SHOWS/PUBLICITY COSTS 1. Limitation of 4 shows per day : All the 4 shows are given to Big Budget Movies and with 200 movies releasing per year Theatres are not able to accommodate most of the movies. Govt. can give a free hand to Exhibitor for playing a minimum of 5 shows per day, This can help everybody from Government, Producers, Distributor, Theatre owner making more money. 2. Publicity Cost : We are still following the old dimensions for Publicity like 30x40 size for poster and 20 x10 for banners, This sizes can change to 10x15 for poster and Banner can be 10x10. (In today scenario a 6 sheet with printing and pasting is costing Rs. 67/-)
16. 16. ISSUES BIG PRODUCERS NEED TO LOOK INTO DETAIL 1. Distributors are releasing Big Budget Movies in nearby theatres . Producers are ignorant that if the Film is average then there share is eaten away by rentals. 2. The solution is Producer should insist on the double theatre only for the first 3 days, Then they can expect more share, This was prevalent some years back, Now with theatres controlled by 2-3 companies they are using this movies for feeding this theatres. Some examples of theatre combination which eat away producer share : (By Playing the same movie in entire neighborhood even the audience are left with no choice but are forced to watch the Big Star cast movie even if it is below average) A) Sriramulu Laxmikala ( Moosapet) = Opposite theatres playing same movie. B) Sharda Radhika Talluri ( Kapra) = In a distance of 2 Kms they play a single movie in all this 3 theatres. C) Tivoli Manju/Prashant in Secunderabad D) Vishnu-Sushma- Sampurna ( Vansthalipuram) = All in a distance of 3 Kms.
17. 17. SOLUTION MINI CINEMA is a 100 -150 seater theatre which can be set up in a 1500 2500 sqft with a basic cost of Rs. 20 Lakhs onwards.
18. 18. SCREEN AREA - 40' x 20' SCREEN SIZE - 20' X 10' NO MAN AREA - 40' X 10' PATHWAY4' PATHWAY4' PATHWAY4' Seating 70 Seating 70 TOTAL SIZE 40 X 60 2400 SFT Amenities @ Theatre Sound Proof Hall 20 Ton AC Theater Style Seating 140 seats Single Window Ticket Counter Computerized Food / Snack Counter Digital Branding space THEATRE SPECIFICATION THE SOLUTION MINI CINEMA
19. 19. THE SOLUTION MINI CINEMA CAPACITY SPACE BASIC COST 100 150 seats 1500 2500 sq.ft. Rs. 15 20 lakhs SETUP Low Cost Setup Low Maintenance Cost ADVANTAGES Quick Setup 30 days max Less Carpet area required High Quality Viewing Full HD with Dolby sound Revenue Streams - Box Office, Ads & Cafeteria Affordable Ticket Pricing - Starts from Rs. 30 to Rs. 50 - depending upon the locality and Govt Permissions.
20. 20. HOW THE THEATRE CAN LOOK??
21. 21. INTERIOR LOOK
22. 22. INTERIOR LOOK
23. 23. INTERIOR LOOK
24. 24. MINI CINEMA ADVANTAGE 1. Low Set up costs : From Rs. 20 Lakh onwards 2. Ready to Operate : 30days 3. Locations: Shopping Complex, Bus Stands, Gated Community, Colonies, etc 4. Will have its own content delivery system No Need of UFO/Qube etc. 5. Low Digital Cost 6. Manpower Requirement : Minimum 3 Personal 7. Less Maintenance Costs 8. Can offer movies in 1080 High Digital with 5.1 /Dolby. 9. Computerized Ticketing System 10. Technology to book tickets using a simple mobile phone with out internet.
25. 25. 1. Average seats in a theatre : 150 - Ticket Pricing : Rs. 50 - Average occupancy : 30 % - No of shows in a week : 28 Shows - Occupancy per show 30% : ( 45 Tickets x Rs. 50) = Rs. 2250 per show - Gross Box office : Rs. 2250 x 28 shows = Rs. 63,000* 2. Producer Share @ 50% = Rs. 31500 3. Producer share for one week on 100 Theatres =Rs. 31,50,000 % age of Leased Theatres In TelanganaFINANCIAL ADVANTAGE
26. 26. 1. Programming will be done across all the theatres centrally. 2. Producers can decide on the locations and the number of shows. 3. Producers will be having access to the Box office to know their movie performance. 4. Films will be continued playing as long as they maintain the hold over figure which is mutually decided. 5. Films produced in Telugu will be given first preference, followed by Dubbed or other language films. % age of Leased Theatres In TelanganaOPERATION OF MINI CINEMA
27. 27. % age of Leased Theatres In Telangana MT1 MT2 MT3 MTn Central Lab Ingest Processing License Management Content Security Adv Management H i g h S p e e d D e l I v e r y Movie is played on screen Content gets decrypted Ads are streamed in logical intervals *MT Mini Talkies CONTENT DELIVERY MINI CINEMA
28. 28. 1. Mobile APP which can show you the nearest theatre and the movies playing in it, 2. Advertisement Revenues 3. Low cost of Digital as this cinemas will have its own content delivery mechanism 4. Low Publicity cost to the Producers NO Theatre Banners/No Six Sheets. 5. Special Theme Day in a week ( Women Movie Day Etc.) 6. Showcase of Short Films / Documentaries etc. 7. Live Events / Planned Events % age of Leased Theatres In TelanganaADDITIONAL FEATURES
29. 29. % age of Leased Theatres In TelanganaBENEFITS TO STAKEHOLDERS TO INDUSTRY1 TO GOVERNMENT2
30. 30. It will help producers in making more films. It will help in creating more jobs in film industry It will help producers coming out with creative concepts. As the theatres are also in gated community, colonies, it can help in increase of occupancy levels It will help short film & documentary film makers in show casing their work It can help cinema reaching out to smaller villages where by this theatre can become the cultural hub in this area. IN WHAT WAY THIS CAN HELP THE INDUSTRY 1 MINICINEMA
31. 31. More Entertainment Tax Access to public , Govt. can use this theatre for propagation of welfare programs. Providing more employment. Telangana Government will be the first to introduce this concept in India. Other Sates like Maharashtra , Gujarat, etc. have converted their existing Video Parlous into Mini Cinema Halls. IN WHAT WAY THIS CAN HELP THE GOVERNMENT 2
32. 32. 1. Necessary Government Orders to implement this model. 2. Providing us a Single Window to avail permissions from the necessary Government agencies. 3. Flexible pricing of Tickets. SUPPORT WE WOULD REQUIRE FROM THE TELANGANA GOVERNMENT
33. 33. EXISTING THEATRE IN A SMALL VILLAGE IN AURANGABAD DISTRICT
34. 34. Sl.No Picture From To Shows Gross Collections Distributor Share 1 Boss 10/16/2013 10/23/2013 24 80920 36974 2 Krissh 3 11/1/2013 11/7/2013 28 100720 60000 3 Duniyadari (M) 11/8/2013 11/10/2013 12 17710 3000 4 Khunkhar Haseena 11/11/2013 11/12/2013 8 10190 2500 5 Ram Leela 11/15/2013 11/21/2013 28 62050 27500 6 Singh Saab The Great 11/22/2013 11/28/2013 28 58040 22510 7 Bullet Raja 11/29/2013 12/5/2013 28 58580 28618 8 R Rajkumar 12/6/2013 12/12/2013 27 97570 34948 9 Time Pass (M) 1/10/2014 1/23/2014 28 40285 18000 % age of Leased Theatres In TelanganaCOLLECTIONS OF A MINI CINEMA (AURANGABAD DISTRICT )
35. 35. % age of Leased Theatres In TelanganaPRODUCER SHARE IN A MINI THEATRE (AURANGABAD DISTRICT ) Below mentioned are few distribution share at a mini theatre in Aurangabad Dist : 1) Ek Tha Tiger 2.5 lacs 2) Joker 1.2 lacs 3) Raaz 3 3 lacs 4) Grand Masti 1.7 lacs 5) Time Pass (Marathi) 2 lac 6) Singham Returns 3.5 lacs 7) Krissh 3 3 lacs 8) Dhoom 3 3.5 lacs. Few places in Surat and Pune district run these theatre's which are situated on 1st and 2nd Floor of shopping complexes.
36. 36. THANK YOU MINICINEMA A KAUPHY TALKIES INITIATIVE