A game of demand and supply

Will Tamil Nadu go the flexi pricing way?

August 08, 2017 04:00 pm | Updated 04:00 pm IST

Thala Ajith’s Vivegam is all set for a big worldwide release on August 24. It will be releasing in a record number of screens in the state, and the star’s fans have already started pressurising theatres owners to begin their advance booking. With the film expected to open big, the trade is curious to see if the state government will introduce a flexible ticket pricing system before the release of Vivegam .

The Tamil Nadu government is still toying with the idea of additional local body taxes on cinema tickets, in addition to existing GST. And the buzz in trade circles is that the state government is not averse to the idea of flexible ticket pricing. The trade is keeping its fingers crossed as the Edappadi K Palaniswami government will be taking a call on it.

What is flexible ticket pricing?

Flexi ticket pricing allows the exhibitors to charge higher or lower ticket rates, depending on the demand for a particular film or show. Most of the states in India have different ticket rates for weekends (Friday, Saturday, Sunday, Public/Festival Holiday) and weekdays (Monday to Thursday). They also have lower rates for particular shows (Morning/Noon). For instance, fans of Rajinikanth, Vijay and Ajith are willing to pay extra to watch their star’s film during the first three days. The same tickets can be sold at a lower price during working days, depending on demand and supply.

AVM K Shanmugam of AVM Rajeswari, the screen with low ticket rates and high footfalls, says, “I’m all for flexi ticket pricing. When there is demand, one should capitalise on it, especially during the opening weekend of big hero films. It will be a big boost for the industry and enable us to provide a comfortable cinematic experience.”

Cheaper tickets for smaller films

Abirami Ramanathan, the president of the theatre owners association, adds, “We should be able to alter the ticket rates depending on the film and time of show. But this system should fall within the range fixed by the state government. Such a pricing scheme will work only for a few Tamil films and other language films. For smaller films, we should charge lower rates to attract the audiences.”

A call for transparency

Flexi ticket pricing will stop screens, mainly outside of Chennai, from indulging in black marketing of tickets. There will be more transparency and the actual box-office numbers will become available. The pricing will be a combination of prime time and the day you choose to watch a film. Like in other metros, the Tamil Nadu government should also allot 16 to 18 hours for screening films, without taking the number of shows into account.

As other home entertainment options (Netflix, Amazon) continue to innovate and deliver quality entertainment at reasonable prices, cinema theatres in Tamil Nadu should experiment with dynamic pricing. Provide huge discounts to films that are not attracting the audiences, while also charging higher rates for films that have become hits. The life span of a film today is just 72 hours, and if a film does not open well, theatres should sell its tickets at lower rates from Monday.

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