That’s because: Better things have greater value. And content is king. Value for money is what everyone aims for nowadays. The future of multiplexes lies in it. Along with multiplexes, niche cinema has mushroomed and it has given us the option of utilising the flexi pricing system for content as well. The mainstream audience today are ready to shell out more money to watch better movies. Money is no longer a constraint.
When brand endorsement by superstars gives maximum mileage to the brand and attracts higher endorsement fees, why shouldn’t content-rich movies be priced accordingly?
If a movie with a big star cast is positioned and promoted right, there is no doubt the audience will come to watch their favourite stars and will not mind paying a little extra. Similarly, if they pay less for a small-budget film, they might feel they have benefited. Value Pricing will be the new trend in multiplexes. Profits will ultimately augment as consumers will find fantastically valued entertainment in the long run.
We are experiencing an initial opening boost, where good masala movies with aggressive marketing like Dabangg are able to shatter records even whenthe content is a little loosely-packed whereas genre-specific, heavy-duty content like Guzaarish also fares better than the market it is made for just for itsstar value and the way it is promoted.
At SRS Cinemas, we follow the Value Based Pricing Strategy, where we price a product with a marginal premium if the perceived value of the content is high. When the content is to the contrary, we price it aptly.
With the seasonal boom of the multiplex is further compromised owing to annual sporting extravaganzas like theIPL, it has become even more important for multiplexes to adopt differential movie-based pricing, more aptly called Value Based Pricing, to make hay when the sun shines.