The Indian cinema chain PVR INOX has launched a movie subscription plan for its theatres that offers subscribers to watch up to 10 films in a month. The plan, launched in limited cities and centres across the country, offers weekday shows under the plan. While the concept is common in several places across the globe, PVR INOX Passport is the first one in India.
PVR INOX Passport
Named PVR INOX Passport, the plan allows consumers to watch ten movies in a month, on any weekday for $8.5. Roughly translated, each film will cost $0.84. PVR INOX has introduced it under a limited period offer, and with only 20,000 subscriptions.
The plan also has a lock in period of three months. So, the consumers need to continue their subscription for a minimum period of three months once they buy it. According to the press release from the cinema chain, consumers will have to select a ‘Passport coupon’ payment option while booking their tickets. Only one ticket can be bought under the subscription in case of a transaction involving multiple tickets.
The program is not valid in “the Southern states including Tamil Nadu, Andhra Pradesh, Karnataka, Kerala and Telangana and cities including Chandigarh, Puducherry, Pathankot, Srinagar, Bharuch, Bhiwadi, Jorhat, Kalka, Siliguri and Colombo, the release says. It is also not applicable for the premium and experiential formats or the recliner seats at any multiplex theatres in any city.
What drives the new subscription plan?
Asked if the recent change in cinema viewing patterns of the Indian audience (over the past three years) inspired the new subscription plan, PVR INOX Co-CEO Gautam Dutta says, “We’ve now become the leaders with PVR and INOX coming together. We wanted a pro-industry and a pro-consumer product, which many may see as a price promotion offer but is actually not. We wish to revitalize the industry on medium and small scale films with the program. Several medium and small-scale films tend to lose out due to the perception of pricing friction of the consumers.”
He adds that the company “understands” the perception and realizes consumers are looking for worthy content when they step out of their houses, and they also need to pay additionally for the food, parking, and travelling etc. “So, the consumer keeps slotting movies as big and event film, and the bucket which consists of the medium and small scale films. Of course, there was a lot of number simulation done, and now, a consumer may be propelled to go ahead and watch many more films, hopefully the smaller ones, in a month.”
Monthly cost
With the subscription that has been named PVR INOX Passport, a consumer gets to watch ten films in a month for a monthly cost of $8.4. “It’s like the London Metro Pass or the Port Pass. Once you buy that pass in London, the friction of spending money every time goes away and one is more free to take trips that would otherwise be cut down in budget management. It is like going for a buffet instead of an a la carte at a restaurant. You get to taste so many different dishes and flavours simply because you know that you don’t have to pay for each dish that you taste.”
Asked about expectation from the new program, Dutta says, “Currently, we’ve not thought of revenues at all. The idea is to get more people (back to theatres). As of now, we are only offering 20,000 passes on sale. Once we sell those, we’re going to take a pause for a couple of weeks, to study how the consumption pattern goes. Only after that will the real picture be clear, and targets are going to be made. It’s the first time a product like this has been introduced here. We don’t have any data to rely upon. We need to study this. And as an industry leader, this is our responsibility to keep coming up with new products and keep experimenting. Some of them may work, some may not. But, all that is fine – it is all just part and parcel of the journey. We’ve currently not assigned any commercial targets to this program.”
PVR also introduced the Trailer Screening program earlier this year. Under the program, consumers could watch thirty movie trailers for $0.012. Asked about the response to the program, he says, “We discovered that a lot of people end up watching trailers on their phone and iPads, some on their TV without the right sound, and environment. That was actually killing the market. And that’s when we thought of this idea of getting people into a half an hour show, exclusive show, where we showcase about 30 new films to be launched within the next 60 to 90 days. About 45% of the people who come to watch the trailer shows, end up buying a movie ticket. So it’s been super, successful from that point of view.”
Target audience
Talking about the target audience for the plan, Dutta says, “We are looking at students, homemakers, housewives, and senior citizens to get excited about this. Of course, there are certain terms and conditions that apply.”
Industry speak
Producer and film business analyst Girish Johar does not believe in the new subscription plan that PVR INOX came up with. Sharing his views on social media, he wrote, “The monthly PVR INOX movie plan is a disappointment as it has too many riders & conditions attached to it. It also leaves large section of the film loving nation out of its ambit. It is not consumer friendly & restricts the audiences. Hope this is just a trial run & PVRINOX open their ambit going ahead keeping all suggestions in mind to actually lure back the audiences.”
Trade analyst Taran Adarsh, calls it a much-needed step. “A much-needed initiative for the industry, which should not only benefit the multiplex chain, but also the filmmakers and the industry in general,” he posted on social media.
(The conversation has been edited and condensed for clarity).
Read the full article here