The monthly Passport subscription service, which launched Monday, will allow subscribers to watch up to 10 movies per month for Rs 699 from Monday to Thursday, which works out to roughly Rs 70 per film.
In the first phase, PVR Inox has restricted the Passport subscription to 20,000 consumers. It is hoped that the subscriptions will be totally sold out in two to three days.
“The Passport subscription service will be a boon for small and medium films. For the industry, it will lead to the release of more films and grow footfalls,” Dutta said, cautioning that this is not a price promotion but about removing friction for consumers to get to a cinema.
He pointed out that the trend in the film industry is that the big is getting bigger and the small is struggling while pointing to the box office collections of Jawan, Pathaan, and Gadar 2.
In a note, Nuvama Institutional Equities Executive Director Abneesh Roy said that this initiative can be a win-win for customers and PVR Inox; however, too many conditions will limit its offtake.”It will appeal to value buyers (students, housewives, and senior citizens) and heavy users and help PVR augment occupancy on weekdays when it is low. However, there are quite a few conditions attached that may limit its offtake. Ideally, PVR should have made conditions less stringent to popularize it and then limit it if needed,” he stated.According to Dutta, the subscription service will excite three consumer segments: women, senior citizens, and students. “We call these segments time-rich and cash-poor. This service will make it affordable for them to come and watch movies,” he noted.
Dutta termed the working professionals who frequent cinema halls during the weekend as cash-rich and time-poor. “This segment is willing to pay a higher price during the weekend as they have limited time on their hands.”
The PVR Inox Co-CEO said that the Passport subscription service will be opened up to a larger audience in the second phase. “We will study the consumption pattern and, after a month, relaunch it to a much wider audience,” he stated.
While stating that the company wants to revitalize the film industry, Dutta said that the subscription service will be a success if it leads to more visits from consumers.
“More footfalls lead to more ad revenue and more spending on food and beverages. This initiative will move the cart for us and the wider industry,” Dutta said.
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