Multiplexes

Recently, the combination of cinema with other services and facilities has led to the burgeoning growth of multiplexes. A multiplex is a multi-screen entertainment complex showing different films under one roof, with other supporting businesses in the space like restaurants, shopping arcades and other entertainment avenues.²⁷¹ Combined with leisure activities, quality screening and a wider choice of films in one complex, premium pricing will no longer be an issue. Multiplexes not only mean more exhibition outlets, they also mean having theaters with varying capacity (and hence costs) for different kinds of films. Multiplexes also appear to increase occupancy, which is crucial, considering a declining interest in film watching, forcing several theaters to shut down. For example, in Delhi, a single-screen 1,000-seater hall has occupancy of about 45%, whereas in Priya Village Roadshow, a four-screen multiplex in Delhi, the occupancy exceeds 65%.²⁷² Further, multiplexes allow for films catering to a select audience to have a relatively fair run. Therefore, with the growth of multiplexes, there will be a simultaneous growth of films made especially for a niche audience, such as art house films, regional films and English films.

More often than not, multiplexes earn more from other revenue sources as compared to box office collections, thereby hedging the risks of theater owners and proving to be a financially better option than single-screen theaters. For example, abroad, about 40% of the multiplex area is dedicated to food and entertainment.²⁷³

Although the cost of setting up a multiplex may be high,²⁷⁴ many states have started offering an entertainment tax holiday (exemption) to encourage building them.²⁷⁵ For example, in August of 2001, the Government of Maharashtra decided to grant an entertainment tax exemption to multiplexes for five years. Premium pricing, better utilization rates, tax holidays and additional income from exploitation of commercial property are expected to improve the Indian exhibition industry's prospect in the future years.

Use of New Technologies

Film production houses around the world are not only concerned with forward and backward integration, but also with horizontal integration. Likewise, Bollywood production houses are in the process of investing heavily in state-of-the-art studios, catering to all aspects of pre and post-production and distribution channels, including establishing new theaters/multiplexes and distribution networks.

In the last decade, the production of films in India has seen incredible changes due to technological advances and computerized special effects. Additionally, Bollywood filmmakers are heavily promoting their films on the web using different sites to provide clips from the film, music sequences and other attractions to entice film fans. Similarly, with the advent of digital cinema and distribution, newer technologies are being explored.