Devang Sampat, chief executive officer of Cinépolis India discusses the cinema chain’s vision, strategies, challenges, triumphs, and future goals
Bengaluru: Founded in Mexico in 1971, Cinépolis claims to be the world’s second largest movie theatre circuit by attendance, operating over 868 cinema complexes, more than 6,699 screens and over 1,12,45,77 seats across 19 countries, serving millions of patrons worldwide, with a global workforce of more than 24,831 people to support its mission.
The cinema chain also wears the badge of the first cinema exhibitor in the world to pioneer the concept of luxury movie theatres, establishing the first luxury theatre experience under the title Cinépolis Luxury Cinemas in 1999 in Mexico City.
Cinépolis entered India in 2009 as a fully owned subsidiary and as the first international movie exhibitor in the country. Since then, it has embarked on a roller coaster ride, establishing a strong footprint across the nation with a total screen count of 437 in 97 multiplexes.
In an exclusive interview with IndiaRetailing, Devang Sampat, chief executive officer of Cinépolis India shares insights into the global cinematic powerhouse. He discusses its vision, strategies, challenges, triumphs, and ambitious goals that pave the way for its future in the film industry.
What are the various formats of Cinépolis operate in India?
Cinépolis offers diverse formats including 4DX, Macro XE, Cinepolis Junior, Imax Onyx 3D LED and RealD 3D.
The 4DX technology integrates dynamic elements for a multi-sensory adventure. The auditorium is equipped with high-tech motion seats and special effects including wind, fog, lightning, bubbles, water, rain and scents, in both 2D and 3D formats.
Similarly, the MacroXE auditorium provides a larger-than-life cinematic experience. This auditorium is built from the ground-up, to provide an action-packed experience to patrons. The screen is extra-large with up to 170 sq. m. in area with Dolby-powered sound, plush leather seating and extra legroom.
Meanwhile, Cinépolis Junior caters to families, offering a family-friendly movie experience with a play area, tunnel slide, and colourful seating options, creating an interactive environment for kids and parents.
Imax offers the combination of a perfectly tuned integrated sound system and precise speaker orientation. Two projectors run simultaneously to provide the perfect image with a balance of warmth and sharpness.
Cinépolis Onyx 3D LED technology, powered by Samsung, brings the visual power of LED picture quality to the big screen. The screen provides truer blacks and maximum brightness, even in ambient lighting conditions.
Our RealD 3D employs 144 frames-per-second projection and passive circular polarisation technology, ensuring viewers a clear image even when they turn or tilt their heads.
Has Cinépolis India strategy been different compared to other markets where you operate?
Cinépolis’ approach to entering and maintaining a leadership position in the Indian market stands out compared to its strategies in other global markets. The company’s success can be attributed to its commitment to delivering a cinematic experience in a landscape influenced by a surge in online content. While some might have leaned towards digital alternatives, Cinépolis has stood firm in its dedication to offering audiences the traditional big-screen experience.
Cinépolis merges cutting-edge technology such as Dolby Atmos surround sound for audio impact, RealD 3D, and laser projections for visual experiences, along with luxurious amenities.
Actively seeking partnerships with like-minded organisations, the company aims to enhance its footprint in India and sustain its upward trajectory, aspiring to be the ultimate entertainment choice.
You are also using your movie theatres to live stream music concerts to cricket matches.
We acknowledge the significant growth of streaming platforms in recent years and have already ventured into various special screening events, live concerts, and even showcased World Cup matches at our venues.
These initiatives are designed to offer a big-screen experience that sets us apart from the at-home streaming experience. For example, we recently screened the Korean music brand BTS’ member Suga’s live screening event with distributor rights, allowing fans to enjoy it on the big screen.
Additionally, we had the privilege of screening the India matches, semi-finals, and finals of the Asia Cup 2022.
Cinemas was one sector hardest hit by the pandemic.
Over the past years, the Indian cinema industry faced unprecedented challenges due to the widespread impact of the Covid-19 pandemic. The closure of movie theatres and strict lockdown measures significantly disrupted the industry.
The initial phase resulted in theatre closures and a drastic decline in audience turnout, as people were apprehensive about enclosed spaces. This situation prompted us to re-strategize and innovate to engage audiences while ensuring safety protocols. By implementing strategic planning and a customer-centric approach, Cinépolis eventually recovered the situation.
What are you doing to get older moviegoers back to the theatres?
To address the concerns surrounding older moviegoers returning to theatres, we have implemented a multifaceted approach that considers their preferences and needs. Recognizing that diverse demographics may harbour different concerns, we upgraded the facilities within the theatres.
In addition, we recognize the nostalgia and appreciation that older audiences have for classic films. In response, we’ve curated a selection of timeless classics movies from the past that resonate with this demographic. These special screenings allow older moviegoers to relive their cinematic memories on the big screen.
Moreover, Cinépolis celebrates an annual 3D film festival where we screen the most beloved 3D movies in selected cinemas.
How will the merger of Inox and PVR impact the industry and your business?
We cannot comment on the specific impact of this merger on our business but we believe that healthy competition is essential for the industry’s growth. This merger could potentially alter the competitive landscape, but our focus remains on delivering outstanding cinema experiences to our patrons, regardless of market dynamics.
What are the benefits and challenges of operating in the tier 1, 2 and 3 cities of India?
Cinépolis, with its extensive presence across India’s tiered cities, faces a nuanced landscape of benefits and challenges. In tier 1 cities such as Mumbai and Delhi, the allure of higher urban populations and affluent audiences offers a lucrative market, but it’s accompanied by intense competition and elevated operational costs. It’s worth noting that Cinépolis allocates 48% of its screens to tier 1 cities.
In tier 2 cities, the opportunity lies in introducing the joy of cinema to emerging markets with less competition, but it necessitates a keen understanding of local preferences and bridging infrastructure gaps. Approximately 42% of Cinépolis’s screens are dedicated to tier 2 cities, underlining their strategic focus on expanding into these regions.
Meanwhile, tier 3 cities represent untapped potential, but the journey involves adapting to limited infrastructure and deeply ingrained local customs. Cinépolis allocates 10% of its screens to tier 3 cities.
Cinépolis’s strategy is rooted in tailoring its offerings to address the specific needs of each tier, ensuring that they provide quality entertainment while navigating the distinctive opportunities and challenges presented by each tier.
Expansion plans for fiscal year 2024?
We have plans to double our capex to Rs 280 crore in 2024 as we look to add 80 screens a year to achieve our eventual goal of having 1,000 screens in the country. Cinépolis entered India in 2009 and has been adding 40-50 screens per year on average, with an expenditure of Rs 3.5 crore on launching a new screen.
We recently launched the first international multiplex in Kozhikode, Gokulam, featuring 5 screens. Furthermore, our recent expansions have seen the inauguration of 11 screens in Lulu Mall, Bangalore, 4 screens in V3S East Cinema, Delhi, and 5 screens in Lulu Mall, Hyderabad.
By December 2024, an additional 28 new screens are scheduled to open, encompassing locations in major metropolitan areas and tier 1 cities such as Gurgaon, Delhi, and Mumbai, as well as in cities like Kannur, Patna, among others.
Moreover, we have 59 screens currently in the planning stages, slated for launch within the next two years, continuing our commitment to enhancing the cinematic landscape across diverse regions.
