Niche American films find success with premium pricing in Indian market

Releasing in select theatres in metros and urban markets, cinema owners say the clientele for such films are limited and do not mind paying upwards of ₹500, even though these aren’t really spectacular movies with extraordinary visual effects. This strategy remains the only way to make the release of such movies with elevated content quality viable in India.

“The idea is that exhibitors are aware of the clientele they are targeting and that these people are willing and able to pay such prices, so that the theatre owners can maximize value since the volume is going to be low,” Rahul Puri, managing director, Mukta Arts and Mukta A2 Cinemas, said.

This strategy is usually adopted for critically-acclaimed films nominated for the Academy Awards or those that have toured the festival circuit, he said. Over the past few months, small-scale American films such as Here, Michael Keaton’s comedy Goodrich and romantic comedy Fly Me To The Moon have respectively made ₹35 lakh, ₹10 lakh and ₹25 lakh in box-office collections in India. 

While they cannot be compared to the ₹100-crore-plus earnings of high-budget, action or superhero Hollywood films, trade experts say the high ticket pricing helps these titles find appeal among their target audience.

Challenges and opportunities

Released in limited screens in markets of south Mumbai and south Delhi, the American studios backing them also don’t wish to spend much on marketing to create hype. “Even in the West, the Oscar kind of films only find a limited audience and it’s not like lower prices would attract more viewers anywhere,” Puri emphasized.

Gautam Dutta, CEO – revenue and operations, PVR INOX Ltd, said footfalls are driven more by the content and the overall cinematic experience than by ticket price alone. “While lower prices might seem appealing for smaller films, audiences are willing to pay for a quality movie experience. This is especially true for premium formats like IMAX, 4DX, and recliners, which provide a more engaging and improved watching experience,” Dutta said. “Hollywood studios may influence pricing for major releases, but theatres have the flexibility to adjust prices based on demand and the specific film. Ultimately, it’s about offering great content and an experience that makes people want to return, rather than just focusing on lowering prices” he added.

To be sure though, with discerning cinema audiences having moved online for entertainment during the covid-19 pandemic, smaller, niche films in several international languages are struggling to find takers in the theatres. These include small-scale Hollywood films or movies from Korea and Iran that were originally popular in the big metros like Delhi, Mumbai, Hyderabad and Bengaluru and could make up to ₹1 crore from their release in theatres. Trade experts say the only way to ensure their theatrical release remains viable in India now is to price them at a premium.

“Niche pricing is a decent idea in this case. These are not universal films that have to appeal to the common man, so it’s not like the rates are out of reach for anyone. The target audience for such films can even pay up to ₹1,000,” independent exhibitor Vishek Chauhan said.