Sangeeta Tanwar
Media

Network18 gets into film exhibition; theatres to be called Glitz

The group has formed a new company, called Stargaze, to handle the project

The media and entertainment conglomerate, Network18 Media and Investments Ltd, has forayed into the film exhibition business with its first multi-screen movie theatre, Batra Glitz in New Friends Colony in Delhi. The theatre started its run with the brand new film, Thoda Pyaar Thoda Magic, on June 27.

The chain of theatres will open in the top 13 metros and will be branded as Glitz. The Network18 Group has formed a new company, called Stargaze, to look after this business.

Sarvbir Singh, managing director, Capital18, Network18’s venture capital and private equity arm, says, “The brand Glitz promises the glamour and magic of the movie world. Currently, the country has around 10,000 cinema screens, which is minuscule given the entertainment needs of our people. So, our aim is to fill this gap and offer quality entertainment.”

Network18 gets into film exhibition; theatres to be called Glitz
Sarbvir Singh
What is the USP of the Glitz cinema theatres? Singh admits that the priority, like in all other businesses, is to offer unparalleled consumer experience in terms of movie watching and food and beverages. But the big differentiator, he says, will be affordability without compromising on a wholesome viewing experience.

Singh explains, “The Batra Glitz has tickets priced at Rs 150 and Rs 200, which, though not the cheapest available, are considerably cheaper than some of the other options available to movie buffs.”

For the record, Network18 entered film production, acquisition, syndication, marketing and distribution in 2006, when it started a division called Studio18. The group’s presence in cinema exhibition completes its media and entertainment business portfolio.

Stargaze will approach the cinema exhibition business in two ways. Initially, it is looking at acquiring and building existing properties, as, for example, with Batra Glitz. Soon, it will begin opening new multi-screen theatres. Singh explains Stargaze’s operation model: “The cinema screen or multiplex business is robust and growing at the moment. It is allied to the film production and distribution business, yet a different ball game altogether. So, clubbing all the businesses under one roof would have amounted to mixing things up. Network18 believes in developing and modelling new ventures as separate outfits, independent of any subsidy from the parent company. That is why Stargaze was created as a separate vertical to harness the maximum benefits from the size of the business available.”

The logic rings true when one takes into account data presented by PriceWaterhouseCoopers in a report: The filmed entertainment business, worth Rs 8,500 crore in 2007, is set to touch Rs 17,500 crore by 2011.

To promote the Batra Glitz, the group launched radio jingles and print ads. The radio jingles had people giving directions to autorickshaw and taxi drivers to take them to New Friends Colony, accompanied by sound effects of the meter being rung down. In the end, a voiceover says, “Ab sab New Friends Colony ja rahe hain… because wahan exciting new Batra Glitz Cinemas khul gaya hai… now showing Thoda Pyaar Thoda Magic. Call 2234567 for tickets.”

Network18's cinema exhibition venture, Stargaze, will have to compete with other big players such as the Reliance ADAG owned Adlabs Ltd, the Delhi based PVR Ltd, Pritish Nandy Communications’ Inox Leisure Ltd and Pyramid Saimira Theatres Ltd. Singh says the field is full of competitors with deep pockets. “But the biggest challenge comes from the fact that our business is dependent on content, thus the choices in terms of movies and acquiring them will be a big differentiator amongst the players.”

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