By Prashant Sethi, reporting from Ficci-Frames 2006, Mumbai.
Atul Goel, CEO, E-City Entertainment
E-City Entertainment has currently launched 22 digital theatres in Gujarat. Most of the planning goes into deciding what the right entry strategy should be?
With the digital content coming in there has to a change in the structure of business, a change in the conventional theatrical distribution and exhibition structure. That has to be the plan. With this structural change, all will benefit from digital cinema. Content aggregator is the one who can shape this new idea.
To bring about this change, there has to be an understanding to – The need for digitalization. After digitisation, the marketing costs will remain the same but the average print cost would go down thus generating higher margins for the producer, distributor and exhibitors.
It also saves on print cost, saving 7-8% of entire acquisition cost. The role of the aggregator remains the same. This will also provide a stable income and will have a limited capital exposure and we also achieve a day and date cinema. As for the consumer they get better picture quality and a day and date release.
This business plan should be to target ‘A’ class centers with collections greater that Rs 1 lakh and later refurbish these cinema and convert them into multiplexes and raise ticket prices. With this all in the value chain will benefit.
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— E-City Digital Cinemas Acquires Mumbai Film Exhibitor Shree Vijay Raj Entertainment For $5 Million
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