The Karnataka authorities has issued new rules capping film ticket costs at Rs 200 (excluding taxes) throughout the state, marking a major transfer to make cinema leisure extra reasonably priced for the general public.
The value ceiling, introduced on Friday, comes into impact following the state authorities’s modification to the Karnataka Cinema (Management) Guidelines, 2014. The brand new rules will likely be formally referred to as the Karnataka Cinemas (Regulation) (Modification) Guidelines, 2025.
Nonetheless, the cap features a notable exception. Multi-screen cinemas with premium services having 75 seats or fewer will likely be exempted from the value restrictions, permitting them to take care of their present pricing construction.
The event follows a draft notification first issued on July 15, which proposed amendments to the prevailing cinema management framework. The federal government had subsequently invited suggestions from trade stakeholders, offering a 15-day window for submissions to the workplace of the Extra Chief Secretary to Authorities, House Division.
The brand new guidelines derive their authority from Part 19 of the Karnataka Cinema (Management) Act, 1964 (Karnataka Act No. 23 of 1964), which empowers the state authorities to control cinema operations and pricing constructions.
“In train of the powers conferred by Part 19 of the Karnataka Cinema (Management) Act, 1964, the Authorities of Karnataka has made the draft guidelines to additional amend the Karnataka Cinema (Management) Guidelines, 2014,” said the official notification launched on Friday.
The Karnataka Cinemas (Regulation) (Modification) Guidelines, 2025 will formally come into pressure from the date of their last publication within the Official Gazette, in line with the federal government announcement.
Story continues under this advert
Notably, this isn’t the primary time the Siddaramaiah authorities has introduced such a cap. In 2017, throughout his earlier tenure as CM, he launched the same Rs 200 cap on ticket costs, though the enforcement of the coverage confronted varied challenges. The cap was lifted after multiplex house owners approached the Karnataka Excessive Court docket to contest the federal government’s resolution, amidst considerations concerning potential income loss.
Now, Siddaramaiah has re-introduced the coverage in response to requests made by the Kannada movie trade.
How multiplexes earn money
Multiplexes function by three main income channels that collectively drive their profitability and enterprise sustainability.
Ticket gross sales characterize essentially the most seen income stream, although the economics are complicated. Field workplace collections are break up between multiplexes and movie producers by various agreements that depend upon the film’s efficiency and launch timeline. Sometimes, producers obtain a bigger share through the preliminary weeks of launch, whereas theaters retain growing percentages as movies proceed their run.
Story continues under this advert
For profitable movies, producers might obtain bonuses, adjusting splits to 52.5% producer and 47.5% cinema. Conversely, poorly performing movies might lead to theaters protecting bigger parts. Lengthy-running films can generate as much as 70% income retention for theaters, making prolonged runs significantly worthwhile.
Meals and beverage gross sales have emerged as the first revenue driver for main multiplexes. In contrast to ticket income, cinemas retain 100% of F&B earnings, making this section essential for profitability. PVR Cinemas, India’s largest multiplex operator, earned Rs 1,145 crore from F&B gross sales in comparison with Rs 1,878 crore from tickets in 2023-24 fiscal. The technique revolves round promoting high-margin merchandise like popcorn and drinks to captive audiences with restricted alternate options, creating substantial revenue alternatives.
Promoting income kinds the third pillar, with manufacturers paying premium charges for in-theater promoting because of assured captive audiences. This income stream can contribute as much as 15% of a multiplex’s whole earnings, offering extra revenue past core cinema operations.