BUSINESS
The entertainment industry has long been synonymous with escapism, but it has evolved to meet new challenges in a post-pandemic world. While OTT platforms brought blockbuster stories to the comfort of homes, the magic of cinema—complete with its larger-than-life screens and collective anticipation—remained unparalleled. As audiences sought more than just content, theatre chains rewrote the playbook, transforming movie-watching into a premium experience. With innovations ranging from recliner seating and gourmet dining to cutting-edge soundscapes, cinemas doubled down on luxury to lure the crowd back. PVR INOX led the charge, setting the stage for a new era where the silver screen merged with five-star sophistication. As per the National Stock Exchange, PVR Inox reported a consolidated net loss of Rs. 11.8 crore for Q2FY25, a sharp decline from the Rs. 166.3 crore profit in the same period last year. The company’s revenue from operations stood at Rs. 1,622.1 crore, down nearly 19% from Rs. 1,999.9 crore in Q2FY24. Total income also decreased by about 18%, reaching Rs. 1,663.9 crore compared to Rs. 2,023.7 crore in the previous year. Expenses for the quarter were Rs. 1,678.6 crore, a 6.8% decrease from Rs. 1,802 crore in Q2FY24. EBITDA for the quarter was Rs. 206.9 crore. This decline can be attributed to a combination of factors, including a subdued content pipeline, fewer footfalls at theaters, and rising operational costs. In a conversation with BrandWagon Online, Aamer Bijli, head of marketing and innovation, PVR INOX Ltd., talks about the company’s marketing strategies, innovations plans, year end trends, and expansion plans among others. (Edited Excerpts) How did this year go for Indian moviegoers in terms of overall cinema consumption? Overall, people have really enjoyed cinema this year. There were a lot of hits that exceeded our expectations in terms of success. One of the major examples is Stree 2 , which turned out to be a huge success in India . Regarding Hollywood films, Deadpool vs. Wolverine was another surprise, performing phenomenally in terms of admissions and occupancy. It was one of our biggest hits. Additionally, we saw a strong response to Bhool Bhulaiya 2 and Singham Returns and many South Indian films, including Amaran and Kalki . The appetite for larger-than-life movies has been evident, and we’ve worked hard to provide premium, large-screen formats like IMAX, ICE, and 4DX. These formats have resonated well with consumers, who recognise that high production value justifies the higher entertainment experience. Moving forward, we will continue to focus on these experiential formats. How do you evaluate the ROI of premium offerings like IMAX or 4DX screens in terms of footfalls, ticket pricing, and customer satisfaction compared to standard formats? We have a strong relationship with the IMAX team, and a lot of due diligence goes into site selection for premium formats. Many markets are currently underserved, and we aim to expand the availability of premium formats in these locations. In terms of ROI, the investment is justified by the returns we receive. Over the years, we have gained a better understanding of market dynamics, consumer trends, and demands. As more films, including those from international studios, adopt and promote these technologies, we are increasingly willing to invest in them. The horror genre has performed quite well for us this year. Films like Three , Shaitan , Tumbadd (re-release), and Hollywood’s The Nun have been significant hits. Horror as a genre had seen a decline around 2018–2019, following the Hereditary phase, but it has regained popularity since Evil Dead Rise in 2022, which reminded audiences of what they had been missing. While many enjoy watching horror films at home, wrapped in blankets with close friends or family, we aim to replicate and enhance that experience in cinemas, offering an even more immersive and thrilling environment. Horror is proving to be a sustainable genre, with international and independent studios focusing more on it, along with local studios contributing to its resurgence. What strategies are you using to attract non-traditional cinema-goers and younger audiences who prefer OTT platforms, especially with the challenge of pirated content? We see ourselves as pioneers in adopting consumer trends, and our strategy spans physical, digital, and hybrid approaches. On the physical side, premium large-screen formats remain a key draw, offering an unmatched experience that allows audiences to enjoy films as their creators intended. The combination of the right films at the right time encourages people to visit cinemas. On the digital side, we leverage advanced software and consumer data to create targeted offers and employ dynamic pricing. By tracking consumer behaviour—such as which films they watch and when—we tailor our marketing strategies to meet their preferences. The post-pandemic world demands sharper, well-thought-out strategies, considering the diversity of audiences and market dynamics. Additionally, we are integrating technology with our brick-and-mortar business through innovations like experiential zones at cinema sites. These efforts go beyond large-screen formats, enhancing the overall cinema experience to attract a wider audience. How do you balance catering to audiences who prefer premium offerings with those who seek affordability, and what proportion of your revenue comes from standard formats versus premium offerings? It’s a balanced mix. We have about 25 IMAX screens, 35–40 4DX screens, and additional formats like ICE, MX4D, and ScreenX. The rest is a combination of PVR Luxe and mainstream screens. The uptake is particularly high for premium formats like PVR Luxe, given the enhanced experience they offer. Ticket pricing is carefully determined based on the location of the cinema, the catchment area, and the audience profile. We’ve conducted extensive due diligence to set prices appropriately, catering to the diverse preferences across different regions of India. As you mentioned, there are different Indias, and so far, we’ve managed to attract a wide range of customers. We will continue to strive to meet the needs of all segments in the future. Can you share details about the current state and expansion plans for your premium screens, including the types of formats and the locations where these screens are being added? As of today, we have 300 premium screens, with 58% of these located in Bengaluru, Mumbai, and Delhi NCR. Premium screens currently account for 15% of our total portfolio. Since January 2021, post-pandemic, we have opened 111 premium screens, which make up 24% of all screens added during this period. Additionally, since February 2023, following the merger, we have opened 61 premium screens, also accounting for 24% of all screens added during this time. Our premium screens are categorised into three distinct formats: Luxury Formats, Technology Formats, and Experience Formats. Luxury Formats make up 56% of our premium screens and include offerings like Director’s Cut and Insignia. Technology Formats account for 32% and include IMAX, 4DX, MX4D, ScreenX, ICE, PXL, and ONYX. Experience Formats represent 13% and include BIGPIX, CLUB, Cosmo, Drive-In, Forest, Kiddles, Playhouse, Sapphire, and Luxe. Looking ahead, we plan to add 14 premium screens across 7 cinemas in the remaining part of the current fiscal year. The breakdown is 5 screens of Director’s Cut, 3 screens of Luxe, and 1 screen each of IMAX, 4DX, PXL, BIGPIX, Kiddles, and Sapphire. What innovations has PVR INOX focused on this year, and what can we expect in terms of technology and tech-enabled features in the next financial year? We are focusing on innovation both on the consumer and cinema sides. On the consumer side, we’ve launched an AI-based chatbot called MJ, or Movie Jockey, which serves as a one-stop interface for consumers to chat about all things related to films. We continue to upgrade our app and forge strategic partnerships with major technology companies like Microsoft and Samsung to improve the overall customer experience. On the cinema side, we plan to introduce more premium formats and experience zones, as well as enhance foyers and FnB offerings. We’re also exploring the addition of retail spaces in our cinemas. Our goal is to evolve entertainment into a more adaptable format that meets the needs of both traditional moviegoers and the Gen Z audience, who seek more than just watching a movie. How do you cater to different age demographics with your IMAX offerings, and how are ticket prices for IMAX screens determined? Our audience spans a wide age demographic because the films we show cater to various genres and age groups. For instance, older films have performed well, but there are also a lot of younger films, such as “Kraven: The Hunter” and several Marvel movies, which are now available in IMAX. There’s no specific age requirement for enjoying IMAX; if you enjoy the experience and the film, you’ll appreciate the format. In terms of pricing, our IMAX screens are mostly located in the north and west regions, with strategically set prices based on weekday and weekend demand. Currently, ticket prices range between Rs 400-450 on weekdays, with prices increasing on weekends depending on the film. How do you view the Gen Z audience, and what strategies are you implementing to target and engage them? Our approach to targeting Gen Z is broad and varied. There isn’t a one-size-fits-all strategy. We focus on hitting all the right touchpoints. Social media plays a significant role in reaching Gen Z, with platforms like Facebook, Instagram, and LinkedIn helping us communicate with them. We are also creating spaces within cinemas where Gen Z can hang out before and after movies. This includes redeveloping foyers, adding games, and gamifying locations to encourage engagement. Additionally, we’re exploring alternative content beyond typical Bollywood and Hollywood films, such as concerts and comedy shows. For instance, a BTS concert screening we held last year performed very well, and we’re looking forward to bringing more such events. Ultimately, we aim to use cinema auditoriums for a wide range of entertainment formats to appeal to different generations. How is PVR INOX leveraging technology and AI to enhance its marketing strategies and improve the consumer experience along with personalised communication? We employ a significant amount of technology within our marketing operations, integrating with platforms like Salesforce and SAP to build deeper connections with our cinema audiences. These tools enable us to analyse consumer preferences accurately and tailor marketing strategies accordingly. For instance, we can determine which genres resonate with specific consumers and target them with relevant promotions. Regarding AI, it’s a vast field with numerous applications. We have already incorporated machine learning into our processes, helping us engage effectively with consumers, and it continues to evolve. On the consumer-facing side, we’ve launched MJ, our AI-driven chatbot. MJ assists with booking tickets, providing movie recommendations, locating nearby cinemas, and suggesting optimal show timings, acting as a conversational interface for moviegoers. Personalisation is a key focus, especially within our app. We’re exploring conversational commerce and personalised notifications to enhance user engagement. These initiatives are under development, and we are conducting extensive research to ensure a seamless rollout. Internally, we’re leveraging AI and machine learning for pricing and programming insights, and we plan to expand these applications in the future. Overall, we are excited about the steps we’ve taken, particularly with the rollout of MJ, and we’re committed to enhancing the consumer experience further through innovation. Looking at the financials, the company seems to have recovered from the impact of COVID. What strategies have helped in the recovery and what are you doing to cut your losses? There were several strategies that contributed to our recovery. Post-COVID, we had to adapt to a world that was quite different from what it was before. Understanding consumer preferences became crucial. Investing in premium formats played a significant role in addressing those evolving needs. Maintaining strong relationships with both local and international studios to ensure their continued faith in theatrical releases was another key factor. On the marketing front, our promotions have become more targeted, reaching the right audience at the right time. Ultimately, it was a combination of staying deeply integrated within the film industry , implementing effective marketing strategies, and ensuring strong internal alignment. All these efforts collectively helped us move forward and recover. What is your preferred marketing channel- online vs offline? Online advertising is undoubtedly significant, but I firmly believe that the best form of advertising is still trailering. Marketing through trailers effectively triggers consumer interest, especially in a world where discovery has become increasingly challenging. With so much technology and information available, it’s not always easy for consumers to keep track of upcoming releases. To address this, we’ve introduced trailer shows, which have performed well, attracting audiences solely to watch trailers. Additionally, more trailers are being paired with movies, creating anticipation. Traditional marketing, like placing posters and standees in strategic locations, continues to be impactful because it keeps the messaging in constant view of consumers. On the digital front, social media has been crucial. This year, we launched several social media campaigns designed to draw audiences back to cinemas, inform them about formats, highlight upcoming lineups, and showcase food and beverage offerings. Email marketing has also played a key role, providing a direct and personalised link to our consumers. These emails are tailored to individual preferences—for instance, horror fans receive updates about horror movies, while Marvel fans are informed about upcoming Avengers releases. Can you share more about the upcoming film lineups, and how you are preparing to enhance the viewing experience for these premium format releases? Mufasa , Sonic 3 , and Kraven the Hunter are all family-friendly blockbusters designed for premium formats, with high production value to enhance the viewing experience. What stands out about Mufasa is its localisation strategy. For example, Shahrukh Khan voicing Mufasa and regional adaptations featuring Mahesh Babu and Arjun Das will help spread the content across various regions in India. While these films, including Sonic and The Lion King , already benefit from strong franchises, localisation is crucial to reaching broader audiences beyond the established brand. We’re excited about these films and look forward to having audiences enjoy them on our large screens. None
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