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Opinion: Encourage free trade, allow flexi cinema ticket pricing, writes G Dhananjayan
There is lot of hue and cry over the impending hike in the prices of cinema tickets among a section of audience.
Chennai
But what they refuse to see is the current ticket prices in Tamil Nadu (of maximum Rs 120 in a multiplex, Rs 95 in a miniplex/ single screen, a/c and Rs 40 in a non a/c theatre) were fixed on January 1, 2007 by the state government, which is nine years ago. While the prices of every consumer product, eatables, petrol, diesel and even the liquor sold in TASMAC shops were hiked by more than 100% in these 9 years, only cinema tickets are restricted by the government, which is affecting the growth opportunity of the film industry.
Movie tickets for a big budget Hindi film is sold for a minimum of Rs.300 to a maximum of Rs.500 in most multiplexes in the first three days, which fetch huge revenues. The same is the scenario in Karnataka where the multiplexes charge between Rs.250 and Rs.300. The Kerala government has allowed free ticket pricing by the theatre owners, with a requirement to pay entertainment tax. Andhra and Telangana governments also follow the Kerala model.Â
Why is the government in TN  fixing the ticket prices and also the number of shows, which are against free trade practice? The reason emanates from the tax exemption, which is given to Tamil cinema for over 10 years now. Earlier it was just for keeping the title in Tamil and now it covers ‘U’ certified films too. As the film industry is enjoying  tax exemption, the government considers it as a beneficiary, and should serve the society by offering tickets at low prices. What the government fails to remember is that only in a PDS shop, the rates are fixed for consumables like sugar, rice etc. The same products, when bought outside, are Â
higher by 50 to 100%. The government offers only limited quantity to the consumers through ration shops, due to subsidised prices. But, when it comes to cinema, where the option of consuming films is not restricted, that prices of tickets is fixed, is a contradiction!Â
To benefit the larger public, the government can fix a ceiling on the ticket prices, say Rs.200 across the state. Within that, the theatre owners can be allowed to fix the ticket prices depending on the demand and show timings. The film industry does not need any tax exemption, which is actually limiting creativity and forcing compromises to obtain ‘U’ certification from the censors. The government can charge a uniform tax on the film tickets and allow the theatres to fix the ticket prices based on the demand. In the same way, the government can de-control the number of shows and allow as many shows from morning till 2 am and let the theatres run the shows depending on the demand.Â
The flexi ticket pricing brings in price dynamics to the sale of tickets. For first three days, hard core fans, who are willing to pay these ticket prices, will view the film at all cost. Others, who cannot afford that rate, can wait until Monday or Tuesday and, watch in theatres  when prices fall, ranging from Rs 60 to Rs 100. In Mumbai, a movie ticket, which is sold for Rs 500 on Friday night, sells at Rs 90 on Monday morning 11 am show.  Flexi ticket pricing will also enable the theatres to charge low for a small budget film and attract more audience. Free trade must be encouraged in every field, including cinema. Â
— G. Dhananjayan, Film Producer, National Award Winning Author, Columnist and Founder-Dean of BOFTA Film Institute in Chennai.
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