Amid the ongoing financial turmoil, the sector feeling the pinch badly is entertainment. However, Gautam Dutta, CEO, PVR Cinemas denies the effect of global recession on the entertainment biz. According to him, recession is more of a sentiment in India, as the economy is ruled by greed and fear over here. One needs to draw a line in between and understand, as it is just a phase. In an interview with IndiaRetailing, Dutta shares his views on managing the entertainment brand during this slowdown.
IndiaRetailing: What are your thoughts on the development of entertainment business in India?
Gautam Dutta: Viewers today, are entertainment starved. The decision to go for a movie happens when their appetite has been fully whetted and thus they expect more out of the experience. The four hours that they spend in a multiplex have to offer a unique blend of experience of eating out, entertainment, relaxation and full-on exclusivity. We follow this insight to create a smart entertainment package. Great innovations not only lead to satisfied consumers, but make them hungry for entertainment too.
IR: How would you differentiate PVR from its competitors?
GD: Our packaging is exclusive and we are content driven. We have 110 screens in 25 cities and there are three important factors that we consider to make the PVR experience an unmatchable one. First, the location and the way halls are laid out become a key point. Secondly, we emphasize on service — from popcorns to personal assistance —we consider everything that counts. Further, we focus on hospitality.
IR: The Indian entertainment and media industry has started to feel the heat of the global economic slowdown. Your comments.
GD: It has been globally proved that comedy shows and movies are not affected much by an economic slowdown. However, we need to have a cautious approach. The current scenario is just a phase and a positive way of looking at it should be —right time to understand the consumers.
Meanwhile, consumers are very choosy today. To work with an innovative attitude will help retaining consumer interest in the product to balance out the negative perceptions, conceived rightly or wrongly by the consumers. Further, we need to analyse our products’ feasibility.
IR: What are the strategies you are following with respect to the current slowdown?
GD: We are not just showing movies to consumers. We are selling them a good time. The experience for the viewers has to be satisfying. Lots of effort and brainwork is there behind the distribution, production, promotion of the movies. Slowdown is leading to cost cutting measures and “more for less” formula is being followed. But it is not required, when value is being given. In these difficult times one requires clear cut communication strategies to reach out to the consumers.
IR: How is the concept PVR talkies faring?
GD: Our new concept, PVR talkies is doing far better than our expectations. We are able to provide similar experience there as we do in other PVR’s. As of now, it is present in Aurangabad, Latur and Vadodara and there we have tried to marginalise the costs to 60-70 bucks. There is no compromise on quality, the halls are air-conditioned. We have internet and kids zone in talkies, a facility that is not even available in PVR Cinemas.
Of course, the land price there is one-tenth of that in major cities and has played a pivotal role in the success of this particular project. That is a major reason why we have managed to keep down costs and as a result have been able to encourage people to come back for the cinema experience; the very people who stayed away because of perceived high costs are now coming back for the experience.
