“PVR Inox Aims To Expand Market Share For Premium Formats To 20%”: Renaud Palliere

In an exclusive interview with Renaud Palliere, Chief of the Luxury Collection and Innovation at PVR Inox, Palliere discusses PVR Inox's vision for luxury cinemas, its market performance in this segment and plans for future expansion. Additionally, he sheds light on the permanent solution offered to discerning customers seeking uninterrupted films and addresses revenue management concerns amidst the shift towards ad-free movies.

Excerpts:

Why an ad-free campaign? What was the thought process behind introducing this initiative?

PVR Inox's implementation of ad-free movie screenings in its luxury cinemas is a deliberate strategy aimed at meeting the changing preferences of audiences who desire an uninterrupted movie-watching experience devoid of commercial breaks. This initiative has been introduced in specific luxury theatres following a thorough examination of customer feedback gathered through social listening tools. Customers have consistently expressed their preference for enjoying films without the distraction of external advertisements. By offering this ad-free experience, PVR Inox demonstrates its commitment to prioritising the satisfaction and loyalty of its premium clientele, thus strengthening brand loyalty.

In the selected seven luxury properties comprising 30 screens, the pre-show and interval on-screen advertisements have been eliminated. The aggregate duration of trailers, in-house promotions, and regulatory requirements typically ranges from 30 to 40 minutes per screening, varying based on the specific movie. By discontinuing third-party advertisements, we're reclaiming approximately 25 minutes of this time. With this newfound time efficiency, an additional screening can be accommodated during the day.

Right now, the ad-free experience is currently being rolled out in select PVR Inox luxury properties in Delhi, Gurugram, Bengaluru, Mumbai and Pune. These include PVR Director’s Cut, Ambience Mall, Delhi and Gurugram and in Forum Rex Walk, Bengaluru, Inox Insignia at Ardee Mall, Gurugram; Inox Insignia at R Cube, Monad Mall in Rajouri Garden; Inox Epicuria, Nehru Place and v Insignia in R Mall, Thane, Mumbai. Additionally, we are coming up with Director’s Cut in Kopa Mall, Pune which will also fall under this portfolio.

What is your view on luxury in cinemas? How is PVR Inox performing in this portfolio and what is the future vision for it?

PVR Inox's approach has consistently centred on adapting to the evolving desires of our customers, aiming to provide them with a differentiated experience. We have continuously elevated the standards of cinema-going to new heights, offering an unparalleled experience through a combination of gourmet dining options, meticulously crafted interiors, and premium amenities. This fusion of luxury cinema with the finest elements of upscale hospitality and entertainment has established a new standard of excellence in the industry.

A flourishing economy depicted through increasing per capita income, is prompting individuals to pursue elevated leisure activities outside their homes, with multiplexes emerging as a preferred destination for enhanced entertainment experiences. PVR Inox aims to expand its current 14 per cent market share of premium formats to 20 per cent in the future. These premium formats encompass a range of options such as Imax, 4DX, ScreenX, Director's Cut, ICE, Insignia, MX4D, Onyx, Luxe and last-row recliners, which are perceived as aspirational choices.

As the leading Imax player in the nation, PVR Inox is committed to expanding the number of Imax screens in response to the growing conversion of Indian multi-lingual films to Imax format. Recognising the escalating demand for recliner seats in premium auditoriums, which are typically the first to be reserved, PVR Inox ensures that an impressive 90-95 per cent of its upcoming cinemas will feature these coveted recliners.

What's the permanent solution for people who are ready to pay extra for ad-free films? Are you planning to expand it beyond luxury cinema?

The ad-free cinemas cater to premium customers who are cash-rich and time-poor and desire a seamless movie-watching experience without commercial breaks. The consumer doesn’t need to pay extra to watch movies in the selected cinemas where no ads are played. The Ad-free concept would remain under the purview of luxury cinemas with more cinemas being brought under the portfolio.

Considering that advertising is a major component of revenue at cinemas, how will you manage the revenue when running these ad-free movies?

The incremental revenue stemming from the increased box office and F&B sales on account of accommodating an extra show in select luxury properties, as a consequence of removing advertising time per show, is projected to surpass the revenue from advertising itself.