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Affordable Ticket Pricing: PVR Inox’s Strategy to Expand in Small Towns

Written by: Team Angel OneUpdated on: May 21, 2025, 2:16 PM IST
PVR Inox plans to grow by launching low-cost cinemas in underserved Indian regions using a franchise model with basic facilities and affordable pricing.
Affordable Ticket Pricing: PVR Inox’s Strategy to Expand in Small Towns
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Multiplex chain PVR Inox is entering new territory in its pursuit of growth. The company is focusing on regions that currently lack cinema theatres. Locations such as Leh in Ladakh, Machilipatnam in Andhra Pradesh and smaller towns in West Bengal and southern India are now on its expansion radar.

These new cinemas will feature essential comforts like air-conditioning while keeping ticket prices low at around ₹150, according to a news report. The approach reflects a strategy tailored to local preferences, which differ from urban audiences who seek a full-fledged entertainment experience.

A Strategic Shift in the Business Model

To bring this vision to life, PVR Inox is leveraging a franchise-owned, company-operated model. Under this arrangement, the company contributes less capital than its development partners, typically builders or mall owners, but retains full operational control. Instead of paying rentals, it earns revenue by sharing profits.

This model allows the company to expand faster with reduced financial risk. Recently, it opened such properties in Raipur and Jabalpur, signalling its commitment to scaling this approach.

Meeting Local Needs with Simpler Cinemas

Sanjeev Kumar Bijli, Executive Director of PVR Inox, explained that the new theatres will be different from their metro counterparts. While cinemas in New Delhi and Mumbai offer a 360-degree entertainment experience with gourmet food and luxury seating, audiences in smaller towns prioritise comfort, hygiene and air-conditioning.

This consumer-first approach ensures that cinemas are designed to match the expectations and economic realities of viewers in less-served areas.

Targeting Screen-Dark Zones

India’s cinema infrastructure is heavily concentrated in metropolitan hubs like the National Capital Region, Mumbai and Bengaluru. This leaves large parts of the country, including states like Bihar, Uttar Pradesh, Odisha, Chhattisgarh, Madhya Pradesh and the northeast, with limited or no access to modern theatres.

PVR Inox aims to address this imbalance by entering these screen-dark zones. This not only supports business growth but also helps bridge a cultural gap, bringing cinematic experiences to communities that have long been left out.

Tackling Affordability and Accessibility

One of the long-standing criticisms against multiplex chains is the high cost of tickets and food. For big-budget films, even the most affordable tickets in metro multiplexes can exceed ₹450, making it unaffordable for a large part of the population.

By offering tickets at ₹150 in smaller towns, PVR Inox is attempting to widen its audience base and make cinema-going a regular activity rather than a luxury.

Performance Snapshot and Future Outlook

In the fourth quarter of FY25, PVR Inox reported a consolidated net loss of ₹125 crore, slightly lower than the ₹130 crore loss recorded in the same quarter last year. Its revenue from operations remained steady at ₹1,250 crore.

Despite the financial strain, the company is optimistic about upcoming releases such as Mission: Impossible – The Final Reckoning, Housefull 5, Sitaare Zameen Par, Raid 2 and Kesari Chapter 2. According to Bijli, the presence of engaging films sustains audience interest and draws them back to theatres.

Read More: PVR Inox Share Price Rises After It Posts Q4 FY25 Results

Conclusion

By entering untapped markets with affordable and simplified cinema formats, PVR Inox is reimagining how entertainment can be made accessible across India. With a cost-effective model and a clear understanding of regional needs, the company is not just chasing growth, but also striving to redefine the movie-going culture in smaller towns.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 


Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Published on: May 21, 2025, 2:16 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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