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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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