When PVR INOX rolls out its new Smart Screens format in December across metros, towns and villages, it won’t be just about cheaper tickets or smaller menus. It is the multiplex giant’s attempt to redefine the basic economics of going to the movies. “This is the first-of-its-kind affordable, digital, scalable, all-inclusive cinema model,” says Pramod Arora, CEO of PVR INOX. “It’s more machine-led than man-led — a self-service experience for a young, digital-first consumer who seeks value without compromising on quality.”
Betting on volumes over margins
The format, typically consisting three to five screens, will see ticket and F&B prices cut by 30–35% compared to regular outlets. Instead of ushers and live kitchens, audiences will rely on kiosks, QR codes, vending machines and AI-based support. The look, feel and technology of the auditoriums, Arora insists, will remain on a par with PVR’s premium formats.
The economics of the move are telling. F&B accounts for 30-40% of PVR INOX’s revenues, and grew 21% in FY24, even ahead of ticket sales which rose 19%. By slimming down service and offering more accessible pricing, the company is betting on volumes to offset margins. “One of the concerns for multiplexes is that their F&B costs are high, which is where they make bulk of their revenues,” notes brand strategist & investor Lloyd Mathias. “Making it more affordable will be a welcome development and will allow those in tier-III, IV and V towns to get a flavour of the multiplex experience.”
For analysts, the bigger story is where this model might take India’s exhibition business. “While India’s box office collections crossed `11,500 crore in 2024, the real headline has been the resurgence of regional cinema — particularly from the South — which has outpaced Hindi-language films in both critical acclaim and commercial performance,” says Chandrashekar Mantha, partner, Deloitte India. “With saturation visible in Tier 1 and Tier 2 cities, cinema chains are increasingly eyeing Tier 3, 4, and 5 towns as the next major growth frontier… although ARPUs (average revenue per user) in these regions remain modest, the sheer volume of potential audiences offers a compelling value proposition.”
Unlocking growth in smaller towns
Smart Screens could help unlock that frontier. PVR INOX says its programming will remain mainstream, but the asset-light model allows for greater localisation, giving regional films more screen time in markets where demand is rising.
Still, challenges loom. “The biggest challenge will be balancing affordability without diluting its premium image,” warns Yasin Hamidani, director, Media Care Brand Solutions. He argues that PVR cannot rely solely on organic social media buzz and should build awareness through trial screenings and community activations.