The Karnataka government’s proposal to cap movie ticket prices at Rs 200 has raised serious concerns across the film exhibition sector, with multiplex operators warning of its potential financial fallout, reported MoneyControl. The move, part of a draft notification currently open to public feedback, is already drawing parallels with the state’s previous attempt at regulating ticket prices in 2017.
Among those most impacted would be PVR Inox, the country’s largest multiplex chain, which operates 215 screens across Karnataka, about 12.3% of its national footprint. Analysts estimate the cap could reduce the company’s average ticket price (ATP) by nearly 4%, with corresponding dips in revenue and profitability over the next few years. Elara Capital’s Karan Taurani predicts a 2.2% hit to revenue and a 1.8% decline in EBITDA between FY26 and FY28 if the cap is implemented.
A key point of contention is the uniform nature of the proposed cap. In cities like Bengaluru, where premium formats such as IMAX and 4DX can cost Rs 600–1,000 per ticket, exhibitors fear the pricing ceiling could jeopardise returns on these high-investment experiences. Industry insiders warn that such a move could discourage further expansion of premium formats and force cinema chains to rely more heavily on food and beverage sales to balance their books.
While state officials argue that the cap will make cinema more affordable and accessible to a wider audience, exhibitors say it risks undermining content quality and consumer choice. The flat pricing model, they argue, doesn’t reflect the diversity in viewing formats and could disincentivise innovation.
The proposed regulation also spells uncertainty for single-screen cinemas. If pricing is equalised across the board, standalone theatres could lose viewers to better-equipped multiplexes, further straining their fragile economics. This isn’t Karnataka’s first brush with movie pricing controls. A similar cap introduced in 2017 was eventually overturned in 2021 after legal challenges mounted by theatre owners. Many in the industry expect a similar course of action if the current proposal moves forward.
As the 15-day public consultation window opens, stakeholders across the board are bracing for renewed debate over balancing consumer affordability with the sustainability of India’s evolving cinema experience.