The moviegoing experience is a multi-billion dollar industry, with hundreds of millions of tickets sold each year.
In the first half of 2018, ticket prices across the country rose an average of 5% compared to the same period last year, according to a report by a leading international market research company.
The average ticket price in the Mumbai market, for example, increased by Rs 2,000 per ticket, while in Delhi, ticket price jumped by Rs 1,400.
While the average price of ticket in the metro cities of Bengaluru and Chennai rose by Rs 8,200 and Rs 4,200, respectively, ticket sales in other cities declined by as much as Rs 1.6 lakh.
While ticket prices have increased since the peak of summer season, there is a risk that this may have an impact on ticket price inflation.
In Mumbai, for instance, the average ticket cost rose by 2.5% from July 2017 to June 2018, but the inflation rate in the city has not budged much in the past year, said Shashi Desai, head of research at market research firm BNY Mellon.
“In the last 12 months, there has been a slowdown in ticket inflation in Mumbai, as the industry has been hit by the summer monsoon.
The increase in inflation may have a detrimental impact on the ticket price growth in the near term,” Desai said.
The biggest jump in inflation rates came from Delhi, which jumped by 8.7% in the last year.
As per BNYCM, the inflation in the Metro cities of Mumbai and New Delhi increased by 7.4% and 6.9%, respectively, between January and June.
This is a big increase for both the cities.
While price increases in the domestic film industry have been a major driver for ticket inflation, the film industry has also been a drag.
In 2017-18, the total value of tickets purchased by film ticket-buyers in the film markets rose by a whopping 15% over the previous year.
This has been attributed to an increase in ticket prices of around 7%.
According to an analyst at market data firm IRI, this increase is due to the increased competition for seats in cinema theatres.
As the ticket prices in cinemas have gone up, the number of cinemas in the market has dropped, and a lot of them are in the midst of restructuring.
While cinema chains like the MCA and Cinemark have seen a rise in their revenues in the recent years, this has not kept up with the demand for cinemas.
This could be because many of the cinemas are now under-used and overcrowded, said IRI’s Rajan Bhattacharya.
“The biggest slowdown in the ticket market in the cities, particularly Mumbai and Delhi, could be the result of a shortage of seats.
If that happens, it could affect the ticketing activity of film ticket sellers.
The problem of ailing theatres, coupled with a slowdown of film-ticket sales in the country, could hurt ticket price rise,” said Desai.
While the ticket inflation is a problem for ticket sellers, it is not a problem that will be solved by raising the prices of cinema tickets.
As it is, a high demand for cinema tickets has led to the current inflation rate.