Multiplex association clarifies on Karan Johar's remarks about high ticket prices

New Delhi: The Multiplex Association of India (MAI) on Wednesday said that the demand for a film is largely driven by its content and appeal rather than by "pricing alone", days after producer Karan Johar criticised theatre owners saying the movie watching experience has become an expensive affair.

During a recent roundtable interview, Johar had alleged that the "average cost for a family of four can be Rs 10,000" at the cinemas, a claim the MAI leadership denied.

"Recently some media reports surfaced, highlighting concerns about the impact of high prices on cinema visitation. In the same context, the reports carried Mr. Karan Johar’s comments suggesting that cinema exhibitors are responsible for high ticket and food & beverage (F&B) prices," MAI president Kamal Gianchandani said in a statement.

"More than anything else, it’s a well-recognised fact that the demand for a film is largely driven by its content and appeal, rather than by pricing alone," he added.

In the statement, Gianchandani countered Johar's claims and said the average cost for a family of four was Rs 1,560.

In 2023, the Average Ticket Price (ATP) across all cinemas in India was Rs 130 per ticket. The country’s largest cinema chain, PVRINOX, reported an ATP of Rs 258 for the fiscal year 2023-24.

"Additionally, the Average Spend Per Head (SPH) on F&B at PVRINOX during this period stood at Rs 132. This brings the total average expenditure for a family of four to Rs 1,560 —significantly different from the Rs 10,000 figure carried in the media reports," he said.

Any evaluation of pricing in the cinema industry must account for the broader economics of movie business, which involves multiple stakeholders, including producers, distributors, and exhibitors, added Gianchandani.

"Each of these players contributes to the final cost to consumers, with prices ultimately shaped by the market forces of demand and supply. If lowering prices could optimize revenue for everyone involved, cinema operators would naturally make those adjustments without needing to be told," he said, adding that unavoidable factors such as inflation also play a role.

In a roundtable interview with The Hollywood Reporter India, Johar said: "Family members said that they don’t like to go to cinema halls because when kids say that they want popcorn or something to eat, they feel bad denying them. So, they would rather go to a restaurant where they’re not paying for the ticket and are paying only for the food. They said, ‘Our child will point and say they want caramel popcorn, but we can’t afford it’. Because the average cost for a family of four can be Rs 10,000. And maybe those Rs 10,000 are not in their economic planning at all."