Watch IPL matches at PVR, Cinemax or IPL multiplexes
Cricket crazy fans may have another option for watching IPL matches, apart from going to stadiums and watching it live on TV.
Multiplexes like Cinemax, PVR, Inox, Big Cinemas are in negotiations for theatre rights to host at the least one IPL match per day during the 2009 IPL season that starts on April 10, 2009, Business Standard has reported.
The theatre rights of the IPL matches are held by the Board of Control for Cricket in India (BCCI). If the multiplexes secure the IPL theatre rights then cinema goers will be able to watch the matches for as low as Rs 150 to Rs 200.
Multiplexes say that they are willing to share revenues with BCCI. Business Standard has quoted Devang Sampat, senior vice-president, Cinemax India, as saying “We prefer to pay a fixed percentage of gross collections from ticket sales for the IPL matches like we do for any movie.”
In 2008, cinemas had faced a slowdown in box office collections during the IPL season. PVR Cinemas’ revenues in the first quarter of 2008 fell by 35.3 per cent from Rs 6 crore in the corresponding quarter in 2007 to Rs 3.88 crore. During this period, occupancies fell from 42 per cent to 32 per cent.
Running IPL matches may help multiplexes to lure back viewers and stabilise revenues.
Meanwhile, SET Max which has the cable telecast and DTH rights for India, is gearing up for the IPL season with new campaigns already on air. In 2009, advertising spends on television are expected to be much higher than those in 2008. SET Max has already upped the premium on its ad spots by 30-50 per cent, according to reports.
If cinemas get the theater rights to show IPL matches, SET Max may take a hit.
On the other hand, it is debatable if it will be profitable for multiplexes to run IPL matches. For one, they will have to cancel shows to accomodate the matches. Two, they will still have to pay entertainment taxes on full occupancy rates, even if the halls are not filled to capacity as per rules for commercial telecast for non-film events.
There is also a possibility that IPL team owners may cut ticket prices. With the economic slowdown, sponsors may cut their spends, and people wouldn’t want to buy expensive tickets to watch matches in the stadiums. As of now, IPL team owners spend up to Rs 400 crores to run their IPL teams, on the wage bill, event cost, and franchisee fee. Most of their revenues come from sponsorships of merchandise and in-stadia rights and gate receipts. If there is a decline in either or both, the IPL team owners will have to cut down on spends or find other ways of boosting revenues.
As of now it seems that SET Max has an advantage if people do not want to shell out for matches, in which case it can well afford to hike its ad rates.