Differentiation Beats Revenue In Cinema

Either you’ve got stadium seating or you don’t; Movie theaters don’t change much from one to the next. But if you want a new option for your movie-night out, get yourself to Bangalore for a ‘Gold Class’ screen experience. Luxury halls with recliner seats and in-seat service complete with a lounge await your arrival.

Brand building in a very competitive market seems to be the underlying theme for luxury halls with revenue not a prime consideration, at least for now. Increasing brand recall is driving this innovation trend where the main goal is for moviegoers to remember their time more than the movie.

“You have to drive differentiation,” says Gautam Dutta, chief executive of PVR Ltd marketing and sales division, the company responsible for these luxury creations. “Eventually, capacities drive revenues.”

In India’s newly-bustling cities these halls are becoming choice venues for corporate and private parties, clients that crave space and exclusivity. Students also lap up the luxury of early shows on weekdays when fares are lower, enabling these premium halls to clock an occupancy rate of 65-70 percent compared with half that for a regular one.

Even at a high price, people are willing to pay for something new and unique. Although they house about a third or less patrons than a regular theater, the price is 2-3 times as much as a regular ticket due to the nature of having a unique experience.

[via AgendaInc]