“Every year, we used to raise prices 5-7%, but we haven’t been able to do that in the last two and a half years. During this time, electricity costs, rent and maintenance fees have gone up, so we had to raise prices,” Dutta said.
The CEO said he expects growth to continue even as footfall in cinemas reaches pre-Covid levels.
The movie series also expects to generate a pre-pandemic level Advertising Dutta said revenue by the third quarter of fiscal year 23 as it plans to roll out new ways of audience participation in theaters.
Ad revenue is currently 68% of the pre-pandemic level.
About 11% of the company’s revenue has come from advertising, which has fallen significantly during the pandemic, and PVR expects to reach that number by the third quarter of fiscal year 2023.
I introduced the 270-degree cinema demo ad for the first time in India To increase the excitement towards brands.
“We are confident that this innovative method of advertising, which is ideal for product debuts, will help brands make a lasting impression on the sentiments of theater-goers. PVR is truly looking forward to collaborating with more brands and advertisers to revolutionize advertising in cinema,” Dutta added.
After the pandemic, PVR tried hard to break the deadlock in inaction in advertising and promoting films.
“We’re playing about 16-18 minutes of ads. Now, within that, there are certain brands saying, ‘I really need to show up, and I’ve got a big launch. So can you make it more impactful for me?’ So we did this exercise, and I’m not going to You would never imagine that the side walls of the cinema would also light up. It obviously means better engagement, better impact and greater recall for advertisers, and that’s exactly what we experienced,” Dutta said.
As part of the experimental advertising, the side walls, ceiling and stage seating can be used for advertising by additional projectors.
PVR plans to open about 100-110 screens in 2022-23, which is more than 80-90 screens on average in the year prior to the pandemic. In this financial year, the company intends to invest Rs 400 crore, a large portion of which will go towards redevelopment of the existing theatre.
PVR reported losses of Rs 748 crore in FY21 and Rs 488 crore in FY22 as cinema operations were impacted due to restrictions imposed by various state governments to curb the spread of Covid-19 pandemic in March 2020.
Footage in theaters is 87% of pre-Covid levels, and the company plans to enter seven new cities this year.