Multiplexes likely to gain from 3D boom in 2011

Close to 40 3D films are likely to hit the screens this year with the rise in the 3D movies being released in 2011, the multiplex owners expect a rise in the average revenue per user (ARPU) by 10-15%. Close to 40 3D films are expected to hit the screens this year. This implies that multiplexes can expect to earn 50% more profits. The total estimated market share of 3D movies in 2011 is expected to be 10% of overall Indian box office.

Half of the revenues of 3D films come from Hollywood films dubbed into Hindi, Tamil and Telugu. Out of the 2010 collections of movies, approximately 65% revenue came from 3D versions as per industry reports. Sunil Punjabi, CEO of Cinemax India says that 2011 will by far be the largest in terms of 3D films. "This year didn't have large 3D releases but has contributed 3-4% of the total collections for 2010 for us. Going forward for 2011, the releases line-up is strong with franchises like Harry Potter 7, and 22 3D English studio releases with all major franchises like Spiderman et al," he said. However, Timmy S. Kandhari, India leader entertainment and media practice, PricewaterhouseCoopers (PwC) says that the revenue earned has been minimal compared to the estimated market potential. "Unfortunately the number of theatres to screen 3D movies is less. Of course revenue can be generated through high ticket prices but that is also limited," he said.

India has seen a stark increase in the number of movies released in 3D format driven by customers willing to pay for the enhanced experience as the ticket prices are as high as Rs 500-800 compared to Rs 100-300 for normal multiplex movies. There are, currently, approximately 3,000 digital cinema screens in India put up by UFO Moviez and Real Image for 3D viewing. "We plan to convert 1,000 screens (into 3D) by 2012," said a source in UFO Moviez. With the success of Avatar, 3D cinema in India has received momentum. "On account of Hollywood movies doing well we are making a live 3D sequel ­expected to release by the end of 2011," said Siddharth M. Jain, head of animation, Adlabs films.

The number of 3D screens in larger and smaller towns has leapt significantly. "There are close to 100 cineplexes in India that are 3D enabled. I see the numbers go up at least 5 times by the end of 2011 with the release of Bollywood 3D movies," added Ranjit.

"Currently we have 28 3D enabled screens. We are likely to close the year with double the number of digital screens," added Sunil Punjabi. "Indian Production Houses are shooting their next movie in live action 3D. The only thing to see is how smartly do Indian directors and production houses work on storyboards and shots that will be suitable for 3D live action," added Ranjit.

16 January 2011 — The Sunday Guardian.