CHAPTER 1 – AN OVERVIEW OF THE INDUSTRY

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 (1)AN OVERVIEW OF THE INDUSTRY( FILM )

(1.1) Brief History Of The Industry

The cinema of India comprises films produced in India, where more than 1800 movies
are produced annually. Major centres of film production in the country include Mumbai,
Chennai, Hyderabad, Kolkata, New Delhi, Amritsar, Thiruvananthapuram-Kochi,
Bangalore, Bhubaneswar -Cuttack, and Guwahati. As of 2018, India ranked first in
terms of annual film output. In 2015, India had a total box office gross of US$2.1 billion,
the third largest in the world. The overall revenue of Indian cinema reached US$2.7
billion in 2019.

The industry is segmented by language, with Hindi film industry (Bollywood), Tamil
film industry (Tollywood) and Telugu film industry (Dollywood) as the biggest.[ Other
prominent film industries include Malayalam, Kannada, Bengali, Marathi and Punjabi
film industry. By 2020, the combined revenue of all other regional film industries has
surpassed that of the Hindi film industry. Millions of Indians overseas watch Indian
films, accounting for some 12% of revenues.

Major Indian enterprises in the film industry include AVM Productions, Sun Pictures,
AGS Entertainment , Geetha Arts, Zee, Mythri Movie Makers, UTV, Suresh Productions,
Eros International, Aascar Films and Yash Raj Films.

History of Indian cinema:

The history of cinema in India extends back to the beginning of the film era. Following
the screening of the Lumière and Robert Paul moving pictures in London (1896),
commercial cinematography became a worldwide sensation and by mid-1896 both
Lumière and Robert Paul films had been shown in Bombay.

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Silent films (1890s–1920s)
In 1897, a film presentation by Professor Stevenson featured a stage show at Calcutta's
Star Theatre. With Stevenson's encouragement and camera Hiralal Sen, an Indian
photographer, made a film of scenes from that show, namely The Flower of Persia
(1898).The Wrestlers (1899) by H. S. Bhatavdekar, showing a wrestling match at the
Hanging Gardens in Bombay, was the first film to be shot by an Indian and the first
Indian documentary film.

The first Indian film released in India was Shree Pundalik, a silent film in Marathi by
Dadasaheb Torne on 18 May 1912 at Coronation Cinematograph, Bombay. Some have
argued that Pundalik was not the first Indian film, because it was a photographic
recording of a play, and because the cameraman was a British man named Johnson and
the film was processed in London.

The second full-length motion picture in India was produced by Dadasaheb Phalke,
Phalke is seen as the pioneer of the Indian film industry and a scholar of India's
languages and culture. He employed elements from Sanskrit epics to produce his Raja
Harishchandra (1913), a silent film in Marathi. The female characters in the film were
played by male actors. Only one print of the film was made, for showing at the
Coronation Cinematograph on 3 May 1913. It was a commercial success. The first silent
film in Tamil, Keechaka Vadham was made by R. Nataraja Mudaliar in 1916.

The first chain of Indian cinemas, Madan Theatre was owned by Parsi entrepreneur
Jamshedji Framji Madan, who oversaw production of 10 films annually and distributed
them throughout India beginning in 1902. He founded Elphinstone Bioscope Company
in Calcutta. Elphinstone merged into Madan Theatres Limited in 1919, which had
brought many of Bengal's most popular literary works to the stage. He also produced
Satyawadi Raja Harishchandra in 1917, a remake of Phalke's Raja Harishchandra
(1913).

Raghupathi Venkaiah Naidu from Machilipatnam was an Indian artist and a film
pioneer. From 1909, he was involved in many aspects of Indian cinema, travelling

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 across Asia. He was the first to build and own cinemas in Madras. He was credited as the
father of Telugu cinema. In South India, the first Telugu and Tamil bilingual talkie
Kalidas was released on 31 October 1931. Nataraja Mudaliar established South India's
first film studio in Madras.

Film steadily gained popularity across India. Tickets were affordable to the masses (as
low as an anna (one-sixteenth of a rupee) in Bombay) with additional comforts available
at a higher price.

In 1927, the British Government, to promote the market in India for British films over
American ones, formed the Indian Cinematograph Enquiry Committee. The ICC
consisted of three Brits and three Indians, led by T. Rangachari, a Madras lawyer.[53]
This committee failed to support the desired recommendations of supporting British
Film, instead recommending support for the fledgling Indian film industry, their
suggestions were shelved.

(1.2) Process Of The Indian Film Industry:

Beginning with the 1900s, the industry has moved through several stages of evolution
in each decade there after Moving pictures were introduced by the French in the late
1800s, when some documentaries were produced in India.

The first full-length films were produced in the early 1900s up to the 1920s.These were
mostly family managed and driven films – right from the cast to the production to the
theatrical releases. This was the era of silent movies, 35 mm films, commercialisation
with affordable ticketing and the prominence of Madras as the hub of movie-making.
There were no sound-proof studios in those days.

Post 1920s and up to the 1940s, talkies and studios flourished after the release of the
first movies with sound in the 1930s. Regional studios and films flourished; advanced
sound technologies were introduced; multi-talented casts with the ability to act, sing,
compose and produce were in vogue; and play-back singing was introduced.

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 During the 1950s and 1960s, there was a proliferation of film makers. The south-Indian
film industry had a major share of the overall market. New cinematographic techniques
were introduced to display visual effects never seen before. Institutions were created
such as the Film & Television Institute of India (FTII) for developing technical skills, the
Film Finance Corporation for financing films and the Films Division.
During this period, parallel cinema also found a space in the midst of mainstream
movies. Film stars started gaining commercial importance over studios by the end of
this period.
The 1970s and 1980s marked a period when big budget and multi-starrer movies
dominated. ‘Art films’ or parallel cinema did find some audiences too. This period was
also significant because of the advent of women producers and directors in the industry.
The National Film Development Corporation was formed in 1975. It was in the 1990s
that technology up-gradation really started in the industry. Digital sound was
introduced. Special effects were being perfected – 3D effects and electronic media were
on the rise. The industry also started catching the attention of international audiences in
the form of the Indian diaspora.This further led to an increased interest from the
corporate sector in the industry.

(1.3) Market Demand And Supply

Contribution to GDP:

India’s film industry represents under 1% of its GDP. This scale often provides the lens
under which the industry is viewed. , which focuses on the film, television, and OTT
industries (which represent over half of the total M&E industry), highlights that the
economic activity generated by these industries runs deeper, just like the bulk of an
iceberg remains hidden below the surface.
On the surface, the television, film, and OTT industries (together referred to in this
report as “creative industries”) are estimated to have a gross output of INR 101,359 cr
(US$ 15.6 bn), and to employ 7.4 lac (741k) people. This is the direct impact, which is
easily visible. Scratch the surface, however, and you would discover that these
industries stimulate other sectors in the economy, producing a total gross output (direct

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+ indirect) of INR 216,677 cr (US$ 33.3 bn), and generate a total employment of 23.6 lac
(2.36 million). These estimates are conservative. The iceberg effect reveals much
greater economic activity.
The indirect impact values above have been estimated through input-output tables,
which identify 130 different sectors and their inter-relationships. Given the relatively
small scale of India’s film industry on the surface, the industry is tagged to a sector
labelled “other services” in the country’s input-output tables. While the “other services”
classification includes recreation, entertainment, radio and television broadcasting
services, it also includes sanitary services, and “services not elsewhere classified”. The
estimates of indirect impact are diluted due to the presence of several unrelated sectors
in the same bucket.
For instance, sanitary services are likely to be driven as a consequence of growth in
other sectors, as against a film, which will drive growth in other sectors. While there
will be multiplier effects in both cases, a film is likely to have a significantly higher
indirect impact. To discover the extent of economic activity generated by the
film and television industry, there is a need to dive well beneath the surface. A medium-
large budget movie can generate tourism revenue nearly equal to its domestic box office
collection (a 2x multiplier only from tourism). Indeed, a strong film with an attractive
location could have a significantly greater impact –
This tourism will also produce its own indirect impact (estimated to be 3-5x of direct
employment), and so on. Similarly, a multiplex drives food and beverage sales in its own
premises to the extent of 35-40% of net box office revenue.
Further, a multiplex often acts as an anchor tenant in a mall, driving up footfalls and
boosting overall consumption, as well as the value of the micro market.

Revenue Generation:

Indian Film industry produced $23.9 billion in 2018 and is projected to reach $33
billion by 2021. Of this, $2.47 billion is the share of Indian film industry . Film industry
produces as many as 1600 films per year. 74% of revenue comes from home box office
and 7% from overseas. Other sources of income account for as high as 19%
(“Technology, Media and Telecommunications”, 2016).

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 In film industry, primary source of revenue till date is home box office collections.
However, state of affairs is changing of late; where the film producers started searching
for innovative avenues of revenue generation as the film making cost is rising hugely
and the risk involved in movie making is going up. To list a few innovative sources of
revenue goes like this; film-based merchandising, co-branding, brand associations, in-
film advertising, home video, global marketing opportunities, digital platforms,
broadband movie release, etc.

Dependence on box office revenue alone means that successful outcome of the movie
alone can save the producer.2017 is one such year for “Bollywood” (name used for
Hindi language movie industry), where as good as 90% of the movies are failures at box
office (“Only Two Blockbusters”, 2018 . Since 2017, there are the minimum seven to
eight films that costed producers $30–50 million. Given rising production budgets,
people involved in film production to distribution are safe only when the film fares well
at the box office. However, on the downside if the film flops, entire money is lost

(1.4) Level And Type Of Competition

Levels Of Indian Film Industry:

The Industry is segmented by language, with Hindi film industry (Bollywood), Tamil
film industry (Kollywood) and Telugu film industry (Tollywood) as the biggest. Other
prominent film industries include Malayalam . Indian filmmaking industry is known as
Bollywood to the mainstream audience. But in reality, Bollywood is part of the Indian
film industry. Bollywood is the actual name of India’s Hindi film industry. The country’s
film industry contains various languages. Including Tamil (Kollywood), Telugu
(Tollywood) and Hindi (Bollywood). In fact, Kollywood is the largest producer with
over 260 films. Tollywood is in second place with over 250 films, followed by Bollywood
in third place with over 220 films.m, Kannada, Bengali, Marathi and Punjabi film
industry.

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Type Of Competition In Indian Film Industry:

Indian Film industry is one of the most popular, glamorous fields to work in. It has a
huge working field with many players as its part. Competition Law is described as the
“magna carta” or the engine of free enterprises1 .Through the means of Competition
Law the resources are decentralised2 and are distributed among the various
participants and through this law certain limit could be imposed on a state power with
regard to giving of privileges.

The objective of Competition Law is to protect competition as the most efficient means
of ensuring efficient allocation of resources which would result in efficient market
outcomes in free market economies
In India, the primary rationale behind the placing of effective competition is the interest
of the consumers and promoting efficiency in the markets. Indian political structure and
ideology is highly influenced by the socialism which means there would be lot of state
intervention in business and equitable distribution of wealth. Government of India first
initiative in controlling and regulating the free business was in 1964, when it appointed
the Monopolies Inquiry Commission to investigate the level of concentration of
industries in the market. The committee found out that 85 percent of the markets are
highly concentrated and the Indian producers and distributors are engaged in
restrictive and manipulative practices. Another major effort to control the competition
was taken by the legislature by enacting the Monopolies and

The major Competition Law issues with respect to Film Industry revolve around the
association of different members, such as the association of producers or distributors or
exhibitors or the combine associations of any of them. The associations are formed to
promote the general welfare of industry; but the limits on the power of the associations
are not set. This is the reason that many cases are filed against the rules and regulations
set by the associations for the promotion of industry alleging that they are causing
AAEC.

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Firms Operating In Indian Film Industry:

Balaji Telefilms LtD

Balaji Telefilms Ltd was founded in the year 1994 and is headquartered in Mumbai,
India.. Balaji Telefilms is promoted by Ekta Kapoor and Shobha Kapoor and is a public
company listed at the Bombay Stock Exchange and National Stock Exchange of India. It
is one of the top 10 production houses in India.

Dharma Productions Pvt Ltd

Dharma Productions Pvt Ltd is one of the top 10 production houses in India. The
company is mainly involved in the business of film production and distribution since
1979. The production house is located in Mumbai and is owned by Karan Johar

Endemol Shine India

Endemol Shine India is a part of the Endemol Shine Group. Endemol Shine India was
founded in the year 2015 and is headquartered in Mumbai, Maharashtra. Endemol Shine
India, at present, is the premier content provider on the Sub- Continent, producing over
800 hours of programming annually for the biggest broadcasters; mainstream &
regional

Eros International Media Ltd

Eros International was founded in the year 1977 in Mumbai, Maharashtra, India. The
public ltd company is dealing in the media and entertainment industry. It offers a wide
range of services including co-production, distribution and acquisition, and film
production. Eros’s major subsidiaries are Eros Now, Eros Music, and Trinity Pictures. Its
offices are located in India, the UK, Australia, the United States, Dubai, Fiji, and the Isle
of Man. It is one of the leading production and distribution companies in India.

Ramoji Film City (ETV Network)

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Ramoji Film city is a broadcast television company owned by Network 18 company. It is
a network of Satellite television channels in India. The company is based out in New
Delhi.

Reliance Big Entertainment Pvt Ltd

The company was founded in the year 2005. It is headquartered in Mumbai,

Maharashtra. Its major products are motion pictures, music, television, and games. Its
parent company is Reliance Anil Dhirubhai and Ambani Group.

Saregama India Ltd

Saregama India Ltd was founded in the year 1946 and s headquartered in Mumbai,
Maharashtra. The company is India’s oldest music label, youngest film studio, and multi-
language TV content producer. The company is engaged in the production of television
serials, including free commercial time

Super Cassettes Industries Ltd (T-Series)

T-Series was founded in the year 1983 by Gulshan Kumar. One of India’s top 10
production houses, the company is well known for Bollywood music soundtracks and
Indi-pop music. T-Series is India’s largest music record label. The company is
headquartered in Noida, India.

Viacom18 Media Pvt Ltd

Its major subsidiaries are Viacom 18 US, Viacom 18 media, Roptanol, the Indian Film
Company, and Viacom 18 Motion Pictures. Viacom 18 owns and operates various
channels of the Viacom group for the Indian viewers and various consumer products in
India. It is one of the top 10 production houses in India. Viacom18 Media Pvt. Ltd. is
India’s fastest growing entertainment network and a house of more than 3 dozen iconic
brands

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Yash Raj Films Pvt Ltd
Yash Raj Films (YRF) is an Indian film production and distribution company working in
Hindi cinema. Its major products are Movies, Studio, Production, Distribution,
Marketing, Music, Home Video, and many more.

(1.5) Pricing Strategies:

The young generation is setting new standards for many traditional industries.
According to a representative survey of 1,000 German consumers commissioned by
PwC, people under 30 have high expectations of their shopping experience. As a fact,
they are the drivers of digitization and individualization in a new market environment.
For many traditional industries, including the cinema industry, digital services are not
yet an essential part of the shopping experience. However, for the younger generation,
they are already highly relevant today. Hence, cinemas need to rethink their pricing
strategy.

Hence, more revenue is created during the release week of new movies. Lastly,
competition from online movie streaming services, such as Netflix, are threatening the
profitability of traditional cinemas. These patterns can also be seen in other European
and international cinema markets.

Many millennials consider going to the theater more often when premium features are
offered. That way, they can enjoy the unique movie experience. This highlights the need
for exhibitors to invest in theatrical experiences that include premium features like
large, comfortable chairs, immersive sound, large-format screens, as well as reserved
and personalized ticketing. The easier step for most exhibitors might be implementing
new product features for a better movie experience. The tricky part is finding the right
strategy to price the new features.

Understand the audience well enough to know what are the optimal price points for
movie tickets are is the key for exhibitors. If tickets are priced too high, cinemas risk a
poor attendance in theaters. On the other hand, low tickets might not even cover the
costs.

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In an ideal situation, an exhibitor knows exactly how many people will attend the movie.
Also, what premium features will be used. This way, they can price accordingly to the
demand and find the right ticket price for each customer. While this seems to be
unachievable, today’s data science can already predict the attendance in theatres, based
on hundreds of factors that drive demand. Those facotrs are movie life cycle, movie
popularity, theater location, weather, and many more

(1.6) Industrial Performance:

Global:

Over the years, Bollywood has emerged as its own distinct identity in the global Film
industry. Bollywood is the global leader in production of movies with a staggering
27,000 featured films and thousands of short films. ( Pillania 1) However, Hollywood is
still the leader in revenues generated. Due to the growth of the Indian market and
globalization, Bollywood has made its way to the international markets. Globalization is
often misrepresented as the growing influence of the western culture in the world and
so we tend to state that Hollywood is influencing Bollywood to a great extent.

In addition, an independent research conducted in Bryant University suggest that out of

50 domestic students, 35 students like watching Indian movies whereas 8 did not like
Bollywood movies and 7 have not watched it yet. Though the sample size is small, it
serves to show that the domestic people are watching and accepting Bollywood movies.
Netflix is an American internet based steaming media provider company which
provides more than 100,000 movies.

The most interesting fact is that 89% of the Foreign Movie section in Netflix, is
Bollywood movies. Netflix has about 33.1 million viewers in United States alone and yet
the “Most Watched Movie “and “Foreign Movie” section consist of many Bollywood
movies. This shows that Bollywood has influenced the domestic audience as well the

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industry itself. The influence of Bollywood element and the Indian culture can be seen
quite evidently in the music, dance and visual representation in Hollywood movies.
(1.7) Challenges In The Industry :

• Lack of financial support

Finance is not so-much-of-a-big-issue for well established or even new media houses
that are backed by some influential person; but it matters a lot to small organisations,
someone like you and me who wants to establish a start-up to give out some real
content. Starting a new company may or may not be difficult on an individual basis but
one thing is common in each case, that is, building investment and scaling up with the
growing business has always been tough for all types of media houses. These costs vary
a lot, from human resources costs, to data collection and processing costs, to data
storage and protection costs, etc

• Media Reputation

Reputation is fast-reaching; it is like the fire in the forest., media houses are not
considered to be a very favourable place to work at. It has gained a bad reputation; a
medium that was earlier supposed to bring out true facts and be a source of inspiration
has now merely become a money-making institution and the “voice of the voiceless”
gets silenced in no time

• Discrimination and lack of efforts

Both these words are a reality in the film industry. Discrimination happens;
discrimination of both types-positive wherein females are not put out on field for
particular tasks where muscle and high tolerance to pain and pressure is needed and,
negative wherein a stereotype is formed that a particular gender is only fit to assist and
to do desk-job.

• Bullying and harassment at workplace

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The film industry has been collaboratively working to promote a more inclusive
workplace but what comes out is that we still need to work on creating a safe, respectful
environment. Bullying in the form of intimidation and/or insulting behaviour, abuse or
misuse of power, mobbing or intentional/unintentional targeting is very prevalent.
Other than bullying, harassment- physical, mental and visual, is always very frequent in
the media biz Perhaps the biggest challenge to the industry is the Censor Board; it is
now machinery that does not produce critical, positive criticism but just creates too
many problems. From corruption, to having decisions influenced by politics, to mere
ignorance, to making insensible statements; the Censor Board has made it to the
headlines quite a few times.

Nepotism has been the talk of the industry for quite some time now, and it is very
difficult for a newcomer to get established and be launched without a caretaker.

Piracy and shifting to OTT platforms has been an issue for quite a few decades and the
major reasons that aids to piracy are high ticket prices, release of film in other places of
the world before India and poor cyber structure. However, with anti-piracy measures
and laws in place to safeguard innovative content, along with the government reducing
the GST on film tickets, piracy has been under the radar but it still has a long way to go.

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CHAPTER – 2 COMPANY PROFILE

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(2.1) Brief History Of The Organisation

Brief History of PVR Cinemas:

PVR Cinemas has its origin as Priya Cinema in Vasant Vihar Delhi, the Cinema was
named after Priya Jaisinghani and was bought by Ajay Bijli's father in 1978, who also
owned a trucking business, Amritsar Transport Co. In 1988, Bijli took over the running
of the cinema hall, which was revamped in 1990, and its success led to the founding PVR
Cinemas.

The company started as a joint venture agreement between Priya Exhibitors Private
Limited and Village Roadshow Limited in 1995 with 60:40 ratio. It began its commercial
operations in June 1997. The company is founded by Ajay Bijli who is the chairman and
managing director of PVR Cinemas. Ajay Bijli's brother Sanjeev Kumar Bijli is the Joint
Managing Director of PVR Ltd. The company also operates a pro-active CSR wing under
PVR. The first PVR Gold Screen was introduced in Forum Mall, Bengaluru.

Current Of Board Of Directors:

Management

Name Designation

Ajay Bijli Chairman & Managing Director

Anish Kumar Saraf Non Executive Director

Deepa Misra Harris Independent Director

Gautam Dutta Chief Executive Officer

Gregory Adam Foster Independent Director

Mukesh Kumar Co. Secretary & Compl. Officer

Nitin Sood Chief Financial Officer

Pallavi Shardul Shroff Independent Director

Rahul Singh Chief Operating Officer

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Rajat Tyagi Chief Information Officer

Renuka Ramnath Non Executive Director

Sanjai Vohra Independent Director

Sanjeev Kumar Joint Managing Director

Sunil Kumar Chief Human Resource Officer

Vikram Bakshi Independent Director

(2.2) Mission/Vision Statement :

Vision Statement: To remain India' most premium and most preferred Retail
Entertainment Company.

Mission Statement: To dazzle and delight the best patron by giving the best
entertainment experience, everywhere, every time.

Quality Policy Followed:

HR Policies –

Mobile Expense Reimbursement Policy , Attire Policy , Recruitment And Selection

Policy ,Employee Referral Policy , Attendance And Leave Policy , Prevention Of Sexual
Harassment Policy(POSH) , Loan And Salary Advance Policy , Transfer Policy ,Marriage
Gift Policy , Incident Reporting Procedure Policy , Travel Policy

Mobile Expense Reimbursement Policy –

This policy was came in action on 1st June, 2015 and formed when company feel, it is
hard for employees to stay connected with each other and they are not able to
communicate without hindrance at that time. But nowadays, mode of communication
get very well advanced, through introducing apps and better plans by telecom industry
and a big thanks to reliance for introducing jio which make communication easy and
free. So, there is no need of such big amount of mobile expense reimbursement.

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Attire Policy –

This policy is active since 1st September, 2014, when company feel that different
employees have different choices of fashion, comfort, smartness and personality. But in
corporate this is not acceptable, there should be parity; no distinguish due to their
dressing sense, equal opportunities to all employees, so it is required to form a common
platform for all. Corporate compose of professionals, so there should be professionalism
in their every move, personality, in a way they interact, in a way they stand, they deal
with problems, their clothes i.e. their full attire. They should be neat and well groomed
because employees are representing our company; they are branding and marketing
our company at all time.

Recruitment and Selection Policy –

This policy is the most important policy for the corporate. This policy came onto the
surface when company recognizes that the employees are keys to their success and
earns to attract and retain staff of the highest calibre. Human resource is most
important tool of the company as all tasks are performed by humans. Therefore skilful,
talented, knowledgeable employees are required in the company for the more
effectiveness and efficiency of the service provided. It is more over good and well
executed, but need to improve its process.

Employee Referral Policy –

This policy is related to recruitment and selection policy and need for this policy is
realised when company feel that good human resources are available within their
employees circle. Therefore, this policy is design appropriately for internal employee
referral. Employee referral process is a advance version of recruitment strategy, which
is good for organisation as it cut down the cost to company.

Attendance And Leave Policy –

This policy came into an action on 1st July, 2014 when company feels that there should
be a balance between mind and body of an employee for the optimum physical and
mental alertness. Company believes in automation process of attendance record
therefore; introduce KRONOS system in the organisation. This policy is important for

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the company to provide the employees with holidays and leaves to re-energise
themselves and to take care of unexpected exigencies and illness.

Policy on Prevention of Sexual Harassment (POSH) –

This policy is one of the most important policies in corporate nowadays, whose latest
version released on April, 2012 and the chairperson of this policy is Ms. Preeti Vermani.
As company believes all employees, including other persons who have dealings with the
company have the right to be treated with dignity. This policy considers the Supreme
Court definition of sexual harassment, therefore policy is design by taking into
consideration those guidelines.

Travel Policy –

This policy is required in organisation for the employees who have to travel regularly
for business exigencies and requirements. It is intent for adequate accommodations for
employees who are required to travel on business purpose. This policy is required for
the marketing and sales department as need to travel so randomly. This policy provides
many kinds of travel entitlement for outstation travel and local travel on the basis of
class of cities. It also includes the entitlements for lodging, boarding and out of pocket
expenses on the basis of grades. It also includes the entitlements for, local travel,
parking and same day outstation travel.

(2.3) Business Model:

1. Sale of Movie Tickets

The Sale of movie tickets, or in layman terms, Box office collection, depends on various
factors, which are: Number of screens, Average ticket price, the occupancy rate of
theatres which is determined by the footfall or the actual ticket sales etc. Due to
lockdowns across states, most of the theatres were closed. In Q4FY21, the company saw
a total footfall of 5.8 Million (-70% YOY) , occupancy rate stood at 8%, which is quite
low from pre covid levels of 35%. Average ticket prices stood at INR 183, and the total
count of theatres stood at 842.The Sale also depends on the type of movies released in
the period.

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2. Sale of Food & Beverages

Food and Beverages spent constitutes around 29% of the revenue. The company
already has high margins in these products but is constantly trying to decrease its costs
by centralizing logistics management so that margins can be increased further. The
company is focusing on increasing the menu size & boasts of the highest per person F&B
expenditure. F&B revenue for PVR stood at Rs960 Cr, when compared to its biggest
competitor, INOX, which has a F&B revenue of Rs 497 Cr. This shows that PVR has done
a commendable job in this segment and beaten the industry average.

3. Advertisment Income

PVR earns revenue from on and off-screen advertising without any additional costs. The
revenue from advertisement income was affected by Covid-19 but is expected to
increase in the next 2-3 quarters. Advertisement revenue for PVR stood at Rs 379 Cr as
compared to Rs 179 Cr for Inox. PVR has made a clear differentiation in the
Advertisement segment when compared to its peers.

(2.4 ) Customers Of PVR Cinemas

PVR operates 628 screens in 135 locations across 51 cities. It also recently launched
Asia’s first Virtual Reality Lounge in Noida. In terms of what PVR has to offer to
advertisers, the numbers speak for themselves! They are operational 365 days a year,
with a total of 1.3 lakh seats and an approximate 80 million footfall every year. This is
the kind of audience that most advertisers can only dream of achieving through other
mediums.

Most of the people watching films in PVR fit the demographic of ‘upper-middle-class’
which is the best target audience for most consumer products in the market. The
average age of their patrons usually ranges from 18 to 55, which is the age group with
the most purchasing power and propensity to spend. PVR is a trusted choice among a
variety of people young and old, from couples to families and office-goers to students.

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Level Of Operations:

Global: PVR Cinemas, is exploring options to expand its operations overseas by

running theatres on management contracts, a top company official said today.The New
Delhi-based listed entity is the second such media and entertainment player to enter
the global market after Anil Ambani-led ADAG's Big Cinemas that operates screens in
Malaysia and the US markets.

"We are exploring options to enter the international market. We might run a few
theatres on management contracts. However, we still feel that there is a huge scope in
the Indian market where the demography is changing every five miles," PVR's Group
president, Pramod Arora,

National: The company presently runs about 142 screens at 32 locations across 18
cities in India and plans to open another 80-100-screens in FY 12 at an investment of Rs
100-120-crore. It will be present in at least 27 cities by end-this fiscal. By then we will
have around 242-screens. The new additions this year would be cities like Kolkata,
Howrah Ranchi and Patna On the growth story of Indian cinema and entertainment,
Arora said that the cinema exhibition industry in India is growing at 10 per cent per
annum driven by multiplexes.

(2.5) Competitors:

 Saregama India
 INOX Leisure
 Tips Industries
 Prime Focus
 Media Matrix
 Balaji Telefilm
 UFO Moviez
 Shemaroo Ent
 Cineline India
 Eros Intl

21
(2.6) Strategies

Business Strategies: PVR Cinemas operates as a multiplex and is the most popular one
in India. The company realised the potential of innovative technology and hence
operated and developed state-of-the-art multiplexes.

These offered qualitative and superior ambience and were able to draw crowds in
droves because of novelty. PVR Cinemas used updated technology systems like Xenon
Technology, Digital-Cinema Technology and Dolby Stereo-Sound-System. It was able to
earn exclusive rights for numerous screen blockbusters from well-known distributors
like 20th Century Fox and Warner Brothers.

PVR Cinemas operates single-screen, double-screen and multiple screen theatres and
offers luxurious seating arrangements and comfortable viewing with best food options.
PVR Cinemas is also involved in distribution and production of Hindi, English and
regional movies. It has entered into partnership deals to manage and operate coffee
shops, pubs, food courts and setting up and running of ice-skating rinks, karaoke
centres and bowling alleys.

Pricing Strategies: It have compared PVR's pricing strategies with other multiplexes.
In multiplexes, tickets are priced depending on perceptions such as brand value of
movies. While in PVR, lifestyle concepts like Gold Class where tickets are priced at Rs.
500 because benefits include ultra-reclining seats in addition to exclusive butler
services. The price quoted by PVR on weekends and on weekdays clearly depicts that it
is targeting high earning people as they can afford such prices on weekends.. and on the
other hand that is on weekdays it is targeting students, low income people, retired
people

Skimming Pricing Method & Penetrating Pricing Method: The pricing strategy adopted
here is a skimming price strategy . PVR had a clear cut picture of what kind of services
to be provided to customers. Since they had a unique way of interaction with their
customers, they had to incur heavy costs in implementing this strategy of high price. So,

22
its worth paying such price for tickets in PVR. The pricing strategy adopted by PVR is
skimming the market on weekends and penetrating the market on weekdays.

Management Strategy: It is great to work with the PVR management, great flow of
communication , recognition for good work, appreciation on every efforts , Team
building formats makes leader that is all what we learnt from PVR How to deal all
situations personal / professional.

Full time as well part time,we learn how to talk with different customers,it has excellent
management system,there is no much hard part of the job but sometime handling the
customers Full time as well part time,we learn how to talk with different customers, it
has excellent management system,there is no much hard part of the job but sometime
handling the customerswork goes everyday because its a cinema theater,there is many
things to learn like communication with different people,its a marketing type
management,all language are used mostly kannada,when there is too much of crowd
that time it become hard time to control. Manages the functions of all personnel through
direct and indirect supervision of Unit Heads and Managers and implements Strategic
Plans, Marketing Plans, Budget, Effective Cost Management, Training and Goals Program
to ensure optimum customer satisfaction, sales potential and profitability on an on-
going basis

(2.7) CSR Activities:

PVR Limited will undertake its CSR activities, approved by the CSR committee, through
the PVR Nest Foundation. The surplus arising out of the CSR activities, projects
orprograms shall not form part of the business profit of the company.

Location of CSR Efforts:

Childscapes (Children at risks) is a dedicated program for street children. Usually

children from this section are visible in and around PVR complexes, malls, shopping
arcades and traffic areas mainly to sustain economically through activities like begging,
rag-picking, etc. This program is running across 3-5 kilometers of radius of PVR
Complexes in Delhi and NCR. CineArt is a program originally evolving from our physical
infrastructure- PVR Cinemas. This is largest film based (creative and multimedia)
education program that has a major impact on the behavioral change ensuring

23
leadership development. The program is uniquely placed to embrace children from all
sections; create a multi-stakeholder program involving diverse sections of people and
organizations to get-together and build collaborative programs and initiatives

PVR Nest: The Collaborative and Partnership Model

PVR Nest has always believed in the power of collective synergy and partnerships since
its inception. Primarily for all programs we have believed in bringing on board like-
minded partners from Public and Private sectors for their collective strengths in the
designing, financing, implementation, operations and management of the programs. The
partnerships enable sustainable development and implementation of these programs.
All on ground projects are implemented through agencies which help to achieve
objectives of literacy, healthcare and rehabilitation and also help us engage with local
communities on a larger scale. partners help to achieve our goals of nutrition,
healthcare and education through innovative models of communication; they have
partners on board that believe in socially responsible investments.

CSR Committee Members:

1) Ajay Bijli - Chairman and Managing Director, PVR Limited

2) Sanjeev Kumar Bijli - Joint Managing Director, PVR Limited

3) Sanjai Vohra - Independent Director

4) Sanjay Khanna - Independent Director

Responsibility of the CSR Committee:

a) Formulate and recommend to the Board a CSR Policy indicating as specified in

Schedule VII

b) Recommend the amount of expenditure to be incurred on the activities stated in

the CSR policy

c) Monitor the CSR activities

24
(2.8) Collabration And Expansion plans:

Expansion plans : As the multiplex industry is coming out of one of the toughest years
for the industry due to the pandemic, leading multiplex chain PVR Ltd is hoping to get
back on track with its expansion plans.

Pramod Arora, Chief Growth & Strategy Officer, PVR Ltd, said, “We believe the content
line-up from April is going to be very strong and we would like to strengthen our
presence across the country. We are geared towards adding 80-85 screens in FY22. Of
course a lot will depend on the progress made by our development partners but we are
hopeful of hitting that number.”

The company said about 30 screens are ready to be rolled out. Some of the new cities
the company expects to enter in the coming months include Thiruvananthapuram,
Nizamabad, Patna, Patiala, Dhanbad, Jamnagar, Ajmer, Bhubaneswar, and Rourkela.
With the addition of nine screens in Kanpur and Mysuru this week, PVR now operates
844 screens at 177 properties in 71 cities in India as well as in Sri Lanka. The multiplex
player has been eyeing the 1,000 screen-mark and plans to achieve this goal in FY21
were delayed due to the pandemic.

“Some of the projects in the pipeline were already at 80-85 per cent levels of delivery
and now they are getting completed. Our development partners have backed us strongly
during the pandemic. We are moving towards a model which focusses on higher
revenue share and lower minimum guarantees and that works well for both PVR and its
development partners,” Arora added.

Collabration Plans : PVR Cinemas and Paytm on Monday announced a strategic

partner. In January, PVR had said it had successfully negotiated for complete or partial
waiver and discounts with landlords for 88 per cent of its cinemas. This aided the
cinema chain in significant reduction in rental and CAM expenses in the current fiscal.
With many States now allowing cinemas to operate at 100 per cent, the multiplex
industry is betting big on pent-up demand as producers are gradually beginning to look
at releasing movies at the box offi

Times Bridge-backed streaming MUBI and PVR Cinemas on November 27 announced

partnership to launch the cinema going initiative MUBI GO in India. They made a

25
strategic investment in MUBI (2018) and continuous to enable its expansion into one of
the world’s fastest growing internet and movie market. As part of the
subscription ,members will receive one complementary ticket every week to see a film
that has been hand picked by MUBI in any PVR cinema , via the MUBI GO app.

(2.9) SWOT Analysis of PVR Ltd:

SWOT analysis of PVR Limited analyses the brand by its strengths, weaknesses,
opportunities & threats. In PVR Limited SWOT Analysis, the strengths and weaknesses
are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like PVR
Limited to benchmark its business & performance as compared to the competitors. PVR
Limited is one of the leading brands in the media & entertainment sector.

PVR Limited SWOT (Strengths, Weaknesses, Opportunities, Threats);

Strengths in the SWOT Analysis of PVR Limited:

1.First mover advantage in multiplex business in India

2. Develop and operate state-of-the-artmultiplexes to create superior quality ambiance

3. Usage of technologically updated systems like Dolby stereo sound system, Digital
Cinema technology, Xenon technology etc.

4. Gained exclusive rights to screen blockbusters from major distributors mainly

Warner brothers, 20th century fox etc.

5. Largest multiplex operators in the world withmore than 1500 screens under
operation

6. Very strong brand equityand Blend of retail and entertainment

Weaknesses in the PVR Limited SWOT Analysis:

1.Ticket sales at higher prices

2. Customer retention over longer terms

3. Parking problems

26
4. Lack of customer feedback for improvement of services

Opportunities in PVR Limited SWOT Analysis:

1.Extend relationship with village road shows

2. Growing family spending on entertainment

3. Large film industry with more than 200 films released each year

4. More offers to retain PVR Loyalists

5. Venture into business of film distribution

6. Expand business by increasing number of screens and targeting wider audience

7. Collaborate with networking sites and Franchises

The threats in the SWOT Analysis of PVR Limited :

1. Blooming competition from similar multiplexes

2. Government’s interference with entertainment tax

3. Consumer resorting to other ways of entertainment

4. Piracy and economic slowdown may affect industry

5. Movie playing spoilsport to brand of multiplexes

27
CHAPTER 3 — DISCUSSION

28
(3.1) Literature Review:

Meaning :- a notice or announcement in a public medium promoting a product, service,

or event or publicizing a job vacancy.

Scope of Advertisement:

Advertising is often regarded as the most important means of marketing a company’s

services and tools. The scope of advertising is to communicate a message to current
customers or potentially target new customers. It helps a company get a message or a
piece of information across to their customer base regarding a new product or special
deal.

Scope of advertising by budget

There is always a budget allocated for advertising and promotion within the marketing
budget. The budget allocated should be in coordination with the type of advertisement
the organization wants. The resources and other requirements are to be kept in mind
for the budget allocation.

Scope of advertising by deliverables

Once the budget is decided, the marketing plan can be projected further. A detailed
scope of work that deliverables require can be outlined. Agencies can now develop a
proposed resource plan.

Scope of advertising by allocating deliverables

For creative work, allocating the type of deliverables (TV, online, mobile, press,
magazine, etc) based on the previous campaign requirements can be more insightful
after the previous plan.

Scope of advertising by strategy

Once the deliverables are allocated, advertising agencies can define the strategic
requirements by brand or category and develop a scope of work based on past
requirements and remuneration for similar strategic deliverables.

29
(3.2) Objective assessment of company and industry:

In this changing marketing scenario advertisement play a very important role in

influencing the customers purchase decision .consumer are rational and they always
want special. The advertisement effectiveness of the company as well as the most
effective medium of advertisement . As the company need to evaluate the effectiveness
of their advertisement periodically , this study help to extent as a material for their
decision making purpose.

(3.3) Objective assessment of literature gathered:

‘Film Policy in a Globalised Cultural Economy’ is devoted to the changing economic and
technological context in which filmmaking occurs, the policy responses that these
changes have generated and their consequences for the pursuit of cultural objectives.
The issue offers discussions of the general economic, technological and political shifts
shaping the global film industry as well as case-studies examining the specific policies
adopted by different states. While these indicate how governments have been obliged to
respond to the economic and technological changes wrought by globalisation they also
highlight the variations in approach to film policy and the continuation of tensions
between economic and cultural, and public and private, objectives.

The past two decades have witnessed major changes in film industries worldwide in
response to both economic globalisation and technological developments. The
dominant position of Hollywood movies in the global film market has remained largely
uncontested but Hollywood itself has become increasingly international in its
operations whilst ‘regional’ screen industries such as those in East Asia and in the
Indian subcontinent have (re-)emerged and developed new forms of collaboration. Such
phenomena suggest the multiplicity and complexity of film production-to-consumption
chains developing in many parts of the world in parallel to, and sometimes in alliance
with, Hollywood. The film industry worldwide has also undergone major technological
developments in terms of film shooting, distribution and exhibition. Digital screens have
increased whilst the use of computer graphics and related digital technologies has
transformed not only the process of filmmaking but also the content and modes of
consumption of film. Changes such as these have also posed new economic and cultural

30
challenges for policy-makers and led to a degree of rethinking of how film policy
objectives are to be conceived, defined and implemented.

(3.4) Contributions by the Student:

DATA ANALYSIS:

1 At what time do you reach the movie?

Just half before the film starts According to the show timing

2 How often do you tend to watch movies at PVR cinemas?

Once in a month Twice in a month Every weekend

3 Your attention towards PVR ads?

Always Sometimes Often Never

4 Have you ever felt these ads are annoying?

Always sometimes Often Never

5 Do you think that these ads have customer reachability?

Yes No

6 Your opinion on ads of PVR?

Entertaining Informational Reference to purchase Irritating

7 In your opinion which is more effective ?

On Screen Off Screen

8 In your opinion which is the most effective type of visual ads in PVR?

Kisoks Display mode Posters Screen ads

9 Does these ads created any influence in your buying decision?

Yes No

10 Which category of products you have purchased after watching these ads?

31
Home Fmcg Beauty products Electrical

11 which is the most attractive element of PVR ads?

Layouts Lightings Sound system Live posters

12 Your opinion about the PVR cinemas atmosphere in creating attention towards ads?

Strongly agree Agree Neutral Disagree Strongly disagree

13 Do you think that technology of PVR can create effectiviness in ads ?

Yes No

14 Do you think that its necessary to show ads in multiplexes?

Yes No

15 Which among the PVR ad is more effective ?

Online Offline

32
 1. Table showing the arrival time of customers for movies in PVR:

OPINION NUMBER OF RESPONDENT PERCENTAGE

Just half an hour before the 3 15

film starts
According to the show 17 85
timing

Graph showing the arriving timing of

customers for the movies in PVR

15%
Just half an hour before the film
starts
According to the show timing

85%

33
 2. Table showing frequency of watching movies :

OPINION NUMBER OF PERCENTAGE

RESPONDENTS
Once in a month 15 75

Twice in a month 4 20

Every weekend 1 5

Graph showing the frequency of watching

movies
16

14

12

10

0
Once in a month Twice in a month Every weekend

34
 3. Table showing attention towards advertisement:

OPINION NUMBER OF PERCENTAGE

RESPONDENTS
Always 2 10
Sometimes 11 55
Often 2 10
Never 5 25

Table showing attention towards adver-

tisement
12

10

6
11

5
2
2 2
0
Always Sometimes Often Never

35
4. Table showing whether the ads display are annoying:

OPINION NUMBER OF PERCENTAGE

RESPONDENTS
Always 2 10
Sometimes 11 55
Often 2 10
Never 5 25

Graph showing whether the ads are annoy-

ing

7%
12%
Always
12%
Sometimes
Often
Never

68%

36
5. Table showing the customer’s opinion about the advertisement’s
reachability:

OPINION NUMBER OF PERCENTAGE

RESPONDENTS
Yes 15 75
No 5 25

Graph showing the advertisements customer

reachability

25%

Yes
No

75%

37
 6. Table showing the customers ‘s opinion about the visual ads of PVR :

OPINION NUMBER OF PERCENTAGE

RESPONDENTS
Entertaining 5 25
Informational 7 35
Reference to purchase 2 10
Irritating 6 30
Total 20 100

Graph showing customers opinion about the

visual advertisments
8
7
6
Graph showing customers opin-
5 ion about the visual advertis-
ments
4
3
2
1
0
Entertaining Informational Reference to Irritating
purchase

38
7. Table showing effectiveness of type of ads:

OPINION NUMBER OF PERCENTAGE

RESPONDENTS
On Screen 14 70
Off Screen 6 30

Graph showing the effectiveness of type of

ads

30%
On Screen
Off Screen

70%

39
 8. Table showing the most effective type of visual ads in PVR?

OPINION NUMBER OF PERCENTAGE

RESPONDENTS
Kisoks 0 0
Display models 4 20
Poster 3 15
Screen ads 13 65

Graph showing the effectiveness of type of

visual ads
14
12
Number of respondents

10
8 Graph showing the effectiveness
6 of type of visual ads

4
2
0
Kisoks Display Posters Screen ads
models

Opinion

40
9. The ads influence in your buying decision :

OPINION NUMBER OF PERCENTAGE

RESPONDENTS
Yes 11 55
No 9 45

Graph showing ads influence on buying de-

cision

Yes
No
45%

55%

41
 10. Table showing the product that purchased after viewing PVR ads:

TYPE OF PRODUCTS NUMBER OF PERCENTAGE

RESPONDENTS
Apparels 3 15
Jewellery 1 5
FMCG 1 5
Apartments 5 25
Electrical 10 50

Graph showing the product that purchased

after viewing PVR ads

30% Apparels
Jewellery
FMCG
Apartments
50% Electrical

10%

10%

42
11. Table showing the attractive element of PVR ads:

FACTORS NUMBR OF RESPONDENTS PERCENTAGE

Layouts 1 5
Lighting effects 3 15
Sound system 14 70
Live posters 2 10

Graph showing the attractive element of

PVR ads

6% 5%

16% Layouts
Lighting effects
Sound system
Live Poster

73%

43
 12. Table showing the influence of multiplex atmosphere in attention towards
ads:

OPINION NUMBER OF PERCENTAGE

RESPONDENTS
Strongly agree 2 10
Agree 5 25
Neutral 10 50
Disagree 0 0
Strongly disagree 3 15

Graph showing the influence of multiplex

atmosphere in attention towards ads
12

10

8 Graph showing the influence of

multiplex atmosphere in atten-
tion towards ads
6

0
Strongly Agree Neutral Disagree Strongly
agree disagree

44
13. Technology of PVR cinemas has impact on effectiveness of ads:

OPINION NUMBER OF RESPONDENT PERCENTAGE

Yes 16 80
No 4 20

Graph showing impact of technology on ef -

fectiveness of ads

20%

Yes
No

80%

45
 14. Table showing the necessity of showing ads in multiplexes

OPINION NUMBER OF RESONDENT PERCENTAGE

Yes 14 70
No 6 30

Graph showing the necessity of ads in mul-

tiplexes

30%
Yes
No

70%

46
 15. Table showing attractiveness of mode of adevertising:

OPINION NUMBER OF RESPONDENT PERCENTAGE

Online 14 70
Offline 6 30

Graph showing the attractiveness of mode of

advertising

30%
Online
Offline

70%

47
Chapter 4 — Findings and Conclusion

48
Findings :

1 Majority of the customers arrives according to the show time

2 Most of them watches the movies once in a month
3 Majority of them sometimes pay attention to the ads
4 Most of them felt sometimes the ads as annoying
5 Yes they felt that ads have customer reachability
6 Customers felt the ads as entertaining, informational and even irritating
7 Majority of them prefer on screen as effective
8 According to them screen ads are the most effective visual ads
9 It has influence in buying decision
10 Most of the customers prefer to purchase electrical products
11 Sound system is the most attractive element of PVR ads
12 They have a neutral opinion about the atmosphere in creating attention towards
ads
13 According to them technology of PVR can create effectiveness in ads
14 Most of think that it is not necessary to show the ads in multiplexes
15 Online ads are more effective according to the customers

Conclusion: Rather than other medias of advertising , the advertisement through PVR
multiplexes can create more special effect in customers purchasing decision. Many firms
of local areas can generate much popularity through this form of advertising . The
atmosphere and technologies of PVR can create special attention in customer’s mind . It
can easily make the ads more attractive than others usual forms of ads.

49