The Multiplex Association of India (MAI), a national association representing 18 regional and national multiplex chains across the country, on Wednesday, termed the Karnataka government's recent decision to cap movie ticket prices at Rs 200 as "retrograde, irrational and unfair" and called for its immediate withdrawal.
The association said the decision is investor-unfriendly and will discourage the growth of new multiplexes in the state as well as cause existing multiplexes to consider closing down.
It said that being able to charge relatively higher prices for peak shows helps multiplexes charge lower prices for non-peak shows, helping multiplexes cater to all segments of the market. Pointing out that the government does not control the prices of other similar activities, like airlines, amusement centres, hotels and restaurants, it questioned the rationale behind controlling movie tickets and not those for other commercial activities.
"There does not appear to be any scientific basis for determining the cap of Rs 200.Such an arbitrary cap, irrespective of the city, quality of multiplex, the kind of investments made in the property, etc. smacks of irrationality and arbitrariness. There is also no rationale for allowing only 10% Gold Class seats to be free of a price cap, or for exempting only Imax, and not other advanced technologies, from the price cap," the association said.
The MAI, which claims to represent over 80% of the industry with its members operating over 500 multiplexes and over 1,800 screens across the country, said it is evaluating options to protect the interests of its members and other stakeholders.
The association said the decision is investor-unfriendly and will discourage the growth of new multiplexes in the state as well as cause existing multiplexes to consider closing down.
It said that being able to charge relatively higher prices for peak shows helps multiplexes charge lower prices for non-peak shows, helping multiplexes cater to all segments of the market. Pointing out that the government does not control the prices of other similar activities, like airlines, amusement centres, hotels and restaurants, it questioned the rationale behind controlling movie tickets and not those for other commercial activities.
"There does not appear to be any scientific basis for determining the cap of Rs 200.Such an arbitrary cap, irrespective of the city, quality of multiplex, the kind of investments made in the property, etc. smacks of irrationality and arbitrariness. There is also no rationale for allowing only 10% Gold Class seats to be free of a price cap, or for exempting only Imax, and not other advanced technologies, from the price cap," the association said.
The MAI, which claims to represent over 80% of the industry with its members operating over 500 multiplexes and over 1,800 screens across the country, said it is evaluating options to protect the interests of its members and other stakeholders.