Today is Cinema Lovers Day. Yes, that’s the name the Multiplex Association of India (MAI) has given to an occasion they have celebrated a few times since they first came up with the idea in September 2022. Tickets in major multiplexes (often excluding South India) are priced at ₹99, to stimulate demand. The day has been used tactically in periods of lull in Hindi cinema, when no big-ticket films are running, or scheduled to release soon.
The traction this idea has got from audiences is quite overwhelming. For instance, Mr. & Mrs. Mahi, today’s Hindi release starring Rajkummar Rao and Janhvi Kapoor, was tracking at ₹3.2 Cr first-day box office in our forecast tracker Ormax Cinematix, before Cinema Lovers Day was announced three days ago. The film is expected to collect about ₹5.5-6.0 Cr, possibly even higher.
These collections come at almost half the ticket price (average ticket price for such films tends to be about ₹180 on the opening day. Which means that the demand must increase four-fold, for the collections to double. One doesn’t need more stark evidence on the impact of ticket price on cinema-going. Or so it would seem.
If lower ticket prices could increase demand four-fold, and double the collections, every day should be celebrated a Cinema Lovers Day. But it’s easy to see that this tactic works because it’s sporadic, say like the Prime Day on Amazon.
From this rigorous analysis conducted by our team in 2023, it seems evident that ticket prices have an impact on the decision to watch a film in a theatre, but only incrementally so. The content’s appeal, determined by its cast, genre, trailer, music, etc., is the primary decision-making factor.
The performance at the box office on Cinema Lovers Day may suggest that the analysis above is faulty. But it’s the co-existence of these two ideas is fascinating: Audiences are not overly price sensitive when it comes to a film they really want to watch, but when a discount offer is available, they will grab it with both hands for a film that qualifies as a decent watch in their books.
One, then, hopes MAI doesn’t milk this idea dry. It’s a great idea for seasonal use, possibly even once a quarter. But make it a fixture, and the box office would not respond. Audiences may end up waiting for lower ticket price offers for bigger films too, which then makes those films unviable, because the demand cannot increase four-fold if you have an organic potential of 50-70% occupancy.
On a side note, the name Cinema Lovers Day amuses me. If at all, the ₹99 idea is the anti-thesis of “loving” cinema. Cinephiles would be the least price sensitive, and will display higher urgency to watch new films at regular ticket prices anyway. The discount is actually targeting the casual audiences, who don’t necessarily “love” cinema, but don’t mind a visit to a theatre once in a while, to hangout with their friends, or to simply enjoy the air-conditioner in the scorching summer heat.
But why quibble over a name, when the idea is working. Cinema Lovers Day is here to stay. The next edition may not be too far away.