FICCI-KPMG-Report-13-FRAMES

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82 The power of a billion: Realizing the Indian dream Nukkad Entertainment Nukkad Entertainment (‘Nukkad’), an initiative started by United Media Works (UMW), is a chain of smallsized digital cinema halls targeting the lower middle & lower income groups of the country. It offers easy and legitimate access of film content to under-served markets. • Easy access: Availability of cinema halls in remote areas • Legitimate access: Standard, legal and good quality viewing experience Nukkad’s aim is to enable the lower segments of society to gain access to legal content, hence limiting their need to indulge in piracy. The ticket price ranges from INR 30-50 and average capacity of 120 seats, the theatre is marketed as a ‘Paisa Vasool’ movie hall. The no-frills theatres which can be set up with a minimum area of 1200-1500sqft provides in-theatre movie experience similar to multiplexes – offering Food and Beverage and air conditioning to the consumers. Currently, there are 2 operational Nukkads in Gujarat and UMW plans to open 2,000 similar theatres by 2015. The model aims to: • Curb piracy: Providing legitimate access to movies at low cost in a cinema hall is expected to help bring down incidents of piracy • Offer new revenue streams to the film Industry: The model aims to provide exhibition services to the ‘un-served’ category of audiences thereby creating a new market for the film industry. • Add to government revenue: Creates a new source of tax revenue for the government and also generates employment across the country • Provide entertainment to un-served category: Provides a audience access to high quality content in a multiplex like environment • Opportunity for in-cinema advertising: Enables national advertisers to reach the remote areas • Community development: Nukkad educates children living in the areas of proximity. Each Nukkad facility endeavours to educate 50 children during morning hours. Key issues faced: • Obtaining Licenses: The Nukkad Entertainment cinema hall operates on video theatre licenses and certain states have halted issuance of new licenses. For example, since 2008 issuance of licenses has been banned in Rajasthan as certain video theatres were found to be exhibiting pirated and adult content. • Uneven entertainment tax structures: High entertainment tax applicable in some of the states is making the model of small sized cinema halls an unviable proposition. • Procuring content as the right price: Convincing distributors to share film content at a rational rate especially for the distant and non-existing territories is an up-hill task. © 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The power of a billion: Realizing the Indian dream 83 Leveraging potential of research The high cost of developing, making, acquiring and distributing a film is making it imperative for companies to assess consumer demand and behaviour intelligently and use the knowledge innovatively. Similar to any consumer product, the content of a film can be shaped in part by scientifically understanding the content preferences of audience and revealing what fascinates them and captivates their attention. Market research can prove to be a helpful tool at every stage of a film’s life cycle. The industry no longer has to rely solely on its instincts when it can leverage statistical tools and frameworks to define a target audience for a genre and assess the market potential of a concept. Analysis of basic parameters such as demographics, income distribution and consumer behaviour parameters such as genre preference, spending and media consumption pattern -by age, gender, geography, language, income bracket etc can unravel the mystery behind erratic audience behaviour. Once the target audience has been decided, content can be refined through focused group testing to ensure that the content turns out to be relevant and appealing. This can be done by using various testing tools such as Concept Testing, Content Development and Audience Pre-testing. • Concept testing and development enables a production house develop the theme of movie • Audience pre-testing helps production houses make necessary changes in the storyline to make it more appealing while the reactions also help distributors focus their marketing strategies. There are mixed opinions on pre-testing, some producers have only limited or no faith in this process, believing that the treatment of a story can make or break a movie, there are others who strongly support the practice • Companies can also use Pre-release Awareness Testing to gauge the effectiveness of their marketing efforts and make necessary changes to the game plan to ensure maximum impact The final stage of any movie lifecycle is to convince prospective audiences to buy movie tickets. The art of marketing a movie is fast evolving and becoming innovative and scientific in its approach. Shorter box office windows, low attention span, high cost of watching movies in theatre and availability of alternate entertainment options such as web, mobile, TV etc have added to movie marketers’ onus of creating extensive buzz and interest to attract the audience to theatres. Movie marketers can employ tools to define which platforms should be used to engage prospective audience and continuously assess whether the efforts are creating positive results. In India the concept of market research is still nascent. However, it is gradually finding its place as part of a content-feedback mechanism to position the marketing campaign of the films. “ As the film was based on a sensitive topic, we were not sure as to how this film would be accepted by the housewives. For this we conducted a focused group research among women aged 35+ years to focused group testing to ensure that the content is relevant and appealing to this section of audience. We received a strong feedback on the hospital scene where it is revealed that Akshay Kumar is God. The scene was originally written with Akshay Kumar dressed casually (in jeans and shirt). The audience could not believe that he was God unless he adorned the avatar which audience is used to seeing Indian gods and goddesses (traditional outfit with ornaments). We then re-written the scene with Akshay in traditional costume of Lord Krishna and it turned out to be a good decision. The movie was able to connect with the audience and gained a fabulous response. “ - Ashvini Yard Co-Founder, Grazing Goat Productions Although, market research cannot be a full proof methodology to ensure box office success, it can certainly de-risk a movie’s exposure to uncertain audience reaction. Much can be achieved if the Indian film industry follows a methodological and scientific approach to movie making. © 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
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FICCI 2013 143 “ The Amendments t
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11 Technology The power of a billio
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Acknowledgement We acknowledge the
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FICCI-KPMG-Report-13-FRAMES

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