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The matter of high ticket & F&B pricing in cinema halls
MUMBAI: Film maker Karan Johar’s plaint that high ticket and F&B prices are what are keeping cinema-goers away from theatres has been seriously objected to by the Multiplex Association of India (MAI) which has issued a clarification.
It may be recalled that Karan Johar, Zoya Akhtar and other directors had sat down and done a free-wheeling conversation with the debut podcast of The Hollywood Reporter India editor Anupama Chopra, the video of which was released earlier this week. During the course of the chit-chat, Johar had mentioned that a single visit to the cinema would set back a family by about Rs 10,000; hence the visits have fallen, films are failing and the box office is getting affected.
MAI president Kamal Gianchandani has issued a note in which he has stated that the issue of ticket pricing and F&B needs to be viewed in a “more balanced manner.”
According to Gianchandani, the average ticket price (ATP) in 2023 across all theatres 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 PVRIox 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 explained.
Gianchandani further pointed out that cinema pricing is dynamic and flexible and fluctuates based on factors like location, day of the week, seat type, film format, and cinema format. “Exhibitors utilise sophisticated digital tools to stimulate audience demand and optimize pricing, frequently offering discounts and promotions that make cinema outings more affordable, not just during off-peak times but even on popular days. Many of these initiatives can lower the overall cost of a cinema visit by more than 50 per cent providing families and moviegoers with affordable options. All pricing structures are clearly listed both at cinemas and online, ensuring transparency and choice for customers,” he elucidated.
“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. Any evaluation of pricing in the cinema industry must account for the broader economics of the movie business, which involves multiple stakeholders, including producers, distributors, and exhibitors. 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. “
“Additionally, unavoidable factors such as inflation play a role, and India has historically experienced high inflation rates. Nevertheless, cinema exhibitors continuously experiment with pricing models, collecting customer feedback and leveraging data analytics to refine their strategies,” he spelt out. “This ensures that the current pricing is both competitive and fair in the context of today’s market.”
Gianchandani concluded the note whilst saying: “At the heart of it all, our industry remains committed to delivering a diverse, high-quality, and accessible entertainment experience for all moviegoers. We believe it’s crucial to consider the full picture before drawing conclusions about pricing, as it’s a complex issue involving many moving parts. The goal remains the same: to provide audiences with the best possible experience at a fair value.”
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Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
