NEW DELHI: In a bid to derisk their business model, multiplex owners are turning to sports to generate an alternate source of revenues. While PVR Cinemas would test-pilot the screening of the entire F1 series and Euro 2008, others like Adlabs and Inox are also keen on screening sports content like the Indian Premier League (IPL) to sustain occupancies.

PVR Cinemas has acquired the theatrical rights from Star India to showcase the entire F1 series. In addition the multiplex chain would show some of the key matches of soccer series — Euro 2008. PVR Cinemedia CEO Gautam Dutta said: “We are partnering the UB Group (Kingfisher brand) for the live screening of F1 series in select cities from May 11. It will be our first experiment with live sports series. We believe that as a multiplex player we need to transform ourselves into a complete entertainment brand.”

UB Group, which owns Force India, would partner with PVR and sponsor some of these races by inviting F1 enthusiasts to watch the races. Mr Dutta added that initially the revenue stream through sports content would be low, given the fact that F1 has niche audience. However, it has the potential to become a significant alternate revenue stream.

Adlabs Cinemas, which is in the process of building megaplexes in 15 cities, has said in the past that it would look at screening sports and other genre of content. This would be necessary as it will be unviable to screen only films in these megaplexes, believe experts.

The Indian Premier League has already caught the fancy of multiplex players. High costs per screen is currently making it economically unviable for cineplexes to show the entire series. However, all multiplexes are in the fray to screen at least the last key matches. Inox Leisure COO Alok Tandon said: “We are looking for the best viable options to be able to screen sports content, as and when they happen. We are even in talks to screen IPL matches and would like to show at lease the last few matches.”

With real estate prices going on an overdrive and movie producers asking for higher margins, sports could emerge as an interesting alternative. Says AT Kearney principal Debashish Mukherjee: “Movies would be the primary source of revenues for multiplex players. Sports, if well timed, can also bring in good revenue for movie exhibition players.”

Mr Mukherjee added that usually movie producers release their movies during summer, Diwali or in the Christmas season. “If sports content can help fill in the gaps for cineplexes, it can be an add-on source of revenue,” he said.

Source:economictimes.indiatimes.com