So, are these offers boosting footfalls in theatres?
Sector experts are of the view that such strategies provide limited incremental benefits. Any significant improvement in footfalls and food and beverages (F&B) sales will depend on the popularity of the film, they said. “Loyalty programmes can work for a certain section of audience and fill up shows on weekdays where occupancy rates are typically lower,” said Ashish Pherwani, leader, media and entertainment sector, at EY. “But the content must resonate with audiences. Only then will these initiatives provide incremental benefits.”
He said, “BOGO free ticket offers help improve occupancy as well as increase food and beverage revenues. But it can be used only for certain films or time bands.”
Karan Taurani, senior vice-president at Elara Capital, said BOGO offer is likely to contribute 12-13% to total revenues generated by Hindi films. “But audiences avail these offers only if the content is good in theatres,” he said.
“A few mid-budget films have worked in the March 2024 quarter. This is perhaps the first time when a few films have worked in a quarter and offers on tickets have added to footfalls,” Taurani said. According to analysts’ estimates, loyalty programmes and other offers on tickets boost occupancy in theatres on weekdays by 16-20%.
