Karnataka’s Proposed Movie Ticket Price Cap

The Karnataka government has proposed a uniform Rs 200 (tax inclusive) cap on movie ticket prices across all theatres and multiplexes in the state. The move, aimed at making cinema more affordable and boosting local film consumption, could significantly impact major exhibitor PVR-Inox, which operates around 12.3% of its screens in Karnataka. With an average current ticket price of ₹260 in the state, the new cap implies a nearly 30% price cut, potentially reducing PVR-Inox’s consolidated average ticket price by 3.7%, affecting revenues and EBITDA over FY26–28. Premium formats like IMAX and 4D, which command higher prices in cities like Bengaluru, would be hardest hit, possibly slowing returns on investment. Exhibitors may shift focus to food and beverage sales to offset losses. The draft notification is open for public comments for 15 days before finalization. Industry players are expected to challenge the rule in court, citing past legal battles over similar pricing regulations. But seems like OTTs and now this, are going to squeeze the life out of exhibitors.