New Delhi:
According to two individuals familiar with the multiplex chain PVR INOX case, select cities such as Gurugram and Bangalore are demanding a license to serve alcohol on additional high-end properties.
The move aims to combat the declining footfall in theaters. While the guardians are not allowed to carry drinks in the auditorium, they will be able to enjoy alcoholic beverages in lounge areas before or after watching the film in luxury formats such as directors.
This initiative is expected to run revenue by increasing the overall film-swing experience, even though some films manage to attract big viewers. According to Livemint, PVR Inox refused to comment on development.
Currently, the company serves liquor in lounge, seating areas, and the live music sector of premium properties such as directors in New Delhi and Mason Inox in Mumbai. These areas are adjacent to cinema auditoriums, but are not associated with them.
According to the Cinematograph Act, alcohol is prohibited inside the movie hall.
“, Which is the case with F&B in theaters, will be limited to high-end properties in prices anyway.
The other person said that PVR Inox expects to attract a new set of customers – which may have to be selected between the film watching or going out for the drink. With the rise of high-quality material available to see the house, industry experts develop theaters in up-market, premium spaces, mixing top notch food, drinks, lounge experiences and better audio-visual techniques. In such a scenario, the film itself cannot be a central attraction.
To create a noticeable contrast between home and dramatic experiences, PVRX is investing significant in luxury cinemas and petru food offerings. The company has said that luxury format will eventually make 20% of its overall screen inventory.
“The effort is to expand this as it provides an attractive opportunity to increase SPH (per head),” said Abnesh Roy, Executive Director (Research) of Nuwama’s institutional equities. “PVR has been trying to increase revenue currents over the years. Liquor is a state subject, so the needs of liquor license are different for different states.” He said that other views include financial implications of obtaining and renewing licenses, which may be prohibitedly expensive in some areas.
This step comes at a time when the box office performance is less. According to Orramax Box Office Report 2024, the collection of dubbed versions of South Indian films fell to Rs 4,679 crore in 2024 in 2024, from Rs 5,380 crore last year.
Despite these challenges, the benefit of PVR INOX increased to Rs 68.1 crore in the third quarter of FY25 to Rs 68.1 crore, according to the company’s investor presentation on 6 February. Revenue from food and beverages rose to Rs 520.9 crore-about 30%of the total revenue of Rs 1,738 crore. Ticket sales increased by 5.8% to Rs 879.1 crore.
