Assuming that occupancy would be 10% lower if ticket rates are increased and 10% higher if t.rates are decreased as
audience becomes choosy once ticket rates are hiked.That would result in drop of collections to 95% of the films,
[may not effect those 5%[HITS] and High budget films.]
Present rates & Seats
Gross
Increased rates
Decreased rates
50-2=48 x525
25,200
75-2=73 x525
38,325
40-2=38 x525
19,950
40-2=38 x317
12,046
50-2=48 x317
15,216
30-2=28 x317
8,876
30-2=28 x124
3.472
40-2=38 x124
4,172
20-2=18 x124
2,232
10-2=8 x250
2,000
25-2=23 x250
5,750
1show gross
42,718
64,003
33,058
28 shows
11,96,104
17,92,084
9,25,624
30% occupancy
3,58,830
20% occupancy
3,58,400
40% occupancy
3,70,250
Weekly rent [21%]
2,50,000
3,75,000
1,94,381
1Lakh- P&A cost + 10% distributors commission+
7% E.Tax + T.rent
1L+35k+
25k+
2,50,000=
4,10,000
1L+35K+25k+
3,75,000=
5,35,000
1L+37k+26k+
1,95,000=
3,58,000
Share
50,000deficit
75,000 deficit
12,000 profit
TMC[rs 2/- theatre maintenance charge]
Hike of movie ticket prices would negatively impact TFI and increase Piracy.