Even as film producers complain that high GST and local body taxes and a cap on ticket prices are cutting into their profits, ticketing websiteticketnew.com, and the producer of Thupparivalan , actor Vishal, have announced that those who buy tickets through the site and its mobile application will get a Rs. 75 discount. With the website’s CEO claiming that it commands a 50% market share, the new scheme is likely to set off a turf war between major players in the ticketing business.
While those in the film business say discounts will increase footfall and marginally curb piracy, Ramkumar Nammalvar, founder and chief executive officer of TicketNew, says the marketing exercise has been designed to expand their consumer base. “Producers are excited because the volumes will be high. For certain films, it’s a discount per transaction and in some cases, it’s discount per ticket,” he says.
Earlier this year, Chinese e-commerce firm Alibaba invested Rs. 120 crore in Orbgen Technologies Private Limited that runs TicketNew. Interestingly,Ticketnew’s move mirrors that of Paytm, a digital wallet and e-commerce firm, which began offering discounts on movie tickets, among other products, setting off a turf war with ticketing websites such as Bookmyshow.
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A business analyst says, “This kind of loss-making discounting is really about taking money from private equity firms and giving it to consumers. It’s good for consumers while it lasts but it won’t last for long and then, the consumers will be upset and go back to other ticketing websites.”
Earlier this week, Bookmyshow began to list tickets for shows in theatres of the SPI Cinemas Group — which owns Sathyam Cinemas, Escape Cinemas at Express Avenue Mall and Palazzo in Forum Mall, as well as theatres in many other cities — on its website. Sources say the deal works both for SPI Cinemas and Bookmyshow. “SPI Cinemas is strong in Tamil Nadu but they aren’t as popular elsewhere. So, they aim to get access to the market through Bookmyshow,” a source says.