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The Actual Effectiveness of the Cap on Movie Ticket Pricing in Karnataka

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Source: Google
The Karnataka Government, announced in its budget in March 2017 that it would be capping the price of movie tickets at Rs. 200+Taxes+Internet Handling Fees (if any). This decision taken by the Government was lauded by many. While this decision was originally lauded as a good one, here is what one must consider before commending it further.

  • The Rs. 200 cap excludes all Gold Screen/Seat Tickets.
  • All Kannada films is priced at a maximum of approximately Rs. 233 (all inclusive*), but tickets for non - kannada films are at a maximum of Rs. 300 (all inclusive). {1}
While the Budget announcement by Chief Minister, Siddaramaiah sounds ideal, by reading the above facts we can gather that the actual price of tickets for Non-Kannada movies will not be much lesser than what it was prior to the 2017 Budget.

This brings me to my next question.
Should this budgetary decision be lauded as much as it is being done today?
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Source: Google
Considering that most tickets on weekdays (Monday to Thursday) are already at competitive prices in the range of Rs. 100-180, the price cap of Rs. 200 will practically only come into play on weekends. The prices for movie tickets on weekends were usually not more than Rs. 300-350 a ticket (all inclusive). If that is the case, this decision is not really effective but can be judged as a pure publicity stunt.

*Service Tax+Entertainment Tax+Internet Handling Fees
Note: Kannada films are exempt from Entertainment Tax

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