Warner Bros, Sony to play a multiplex role

 http://www.financialexpress.com/fe_full_story.php?content_id=169742

 

Payal Khandelwal

 

Mumbai, Jul 10   Cinema-goers are in for a treat with global entertainment majors Warner Bros and Sony Pictures now planning to enter India’s burgeoning multiplex industry. Both companies are already in talks with real estate major DLF Ltd to set up multiplexes in major cities across the country, according to sources close to the development.

 

With a shortfall of an estimated 40,000 screens in the cinema-hungry nation, the multiplex business is considered extremely lucrative. According to a Ficci-PwC report, the media & entertainment industry in India is expected to grow at a compound annual growth rate of 18% to touch Rs 1 lakh crore by 2011.

 

While Warner Bros, one of the most diversified entertainment companies in the world, has a presence in the multiplex business through Warner Bros International Cinema set up in 1991, Sony Pictures is yet to make a foray into the business. Warner Bros International Cinema, which has multiplexes in the US, Italy, Japan, Spain, Taiwan and China, has built over 170 cinemas and 1,600 screens in 11 countries. It manages the Mann Theatres chain in the US.

 

In China, Warner Bros has a tie-up with real estate company the Wanda group to set up multiplexes.

 

PICTURE PERFECT

• Warner Bros has built over

170 cinemas and nearly 1,600 screens around the world

• Sony Pictures is yet to enter the mutliplex industry, but the global major has a diversified

entertainment portfolio

• Warner Bros has tied up with China’s Wanda Group, a real estate firm, for multiplexes

• DLF is planning multiplex expansion in major cities in India, and later in Tier-2 cities

 

Sony Pictures has operations in 67 countries and has a diversified entertainment portfolio, including motion picture production and distribution, television programming and syndication, home video acquisition and distribution, among others.

 

It could not be ascertained what the nature of the tie-up between DLF and the global majors would be. Both the entertainment companies have hitherto been distributing Hollywood movies in India.

 

DLF operates its multiplex business under the brand of DT Cinemas. It is in expansion mode for its multiplex business and has plans to set up multiplexes in Gurgaon, Delhi, Noida, Mumbai, Ludhiana, Chandigarh, Pune, Ahmedabad, Goa, Chennai, Bangalore and Kochi. DLF is planning to target high-end customers with the price per ticket ranging from Rs 150 to Rs 250 depending on the location of the multiplex.

 

The company has plans to venture into Tier-2 cities in phase two of the multiplex expansion.