People watch movies to escape economic slowdown, says PVR CEO Kamal Gianchandani
Seems like the Cinema business is doing well despite the kind of economic slowdown the rest of the country is facing, according to the CEO of PVR Cinemas
It seems that the cinema business is doing well despite the kind of economic slowdown the rest of the country is facing. If the CEO of PVR Cinemas is to be believed then, right from the time the box-office hit Kabir Singh released in June, films with quite small budgets or comparatively unpopular artists have also been drawing crowds. Kamal Gianchandani, chief executive officer at PVR Pictures, revealed this toThe Print.
The numbers for July-September will “definitely amaze a lot of people,” he said, refusing to reveal more than that.
“I think the slowdown is helping the cinema business,” Gianchandani said. “There is negativity around, and people want to escape it.”
Gianchandani’s comment, if were to be accurate, would be a revelation since the slump has universally impacted all industries regardless of their orientation. Right from a ₹10 packet of Parle-G to luxurious cars; the demand for everything has diminished. Comparing movies to lipstick, Shah Rukh Khan once said, that neither of them is going to be affected by any downturn in the economy.
PVR’s sources of income are:
· 57.5% of revenue comes from ticket sales
· 27.5% from purchases of popcorn, soda and other food and drink
· 10% from advertising
Footfalls, which have risen about 20% in this quarter, will “remain strong,” though the economic slump may upset advertising, according to a report by Edelweiss Securities Ltd. in August. PVR is trading at an estimated price-to-earnings of 43.3 times, compared with about 21 for China’s Wanda Film Holding Co.
“It is not just the content. There is something else at play that is aiding the film business,” Gianchandani said. “I won’t say we are happy with the slowdown, but we have no complaints because the business is doing well.”