In a major move to make cinema-going more affordable, the Karnataka government has proposed a flat cap of ₹200 on movie ticket prices. This will be implemented across all theatres in the state, including high-end multiplexes and premium formats like IMAX and 4DX.
The decision, announced in line with Chief Minister Siddaramaiah’s 2025 budget speech, is aimed at promoting regional cinema and increasing theatre footfall.
No Exemptions: Flat Cap for All Formats and Languages
The draft notification, issued on July 15 by the Home Department under the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025. This proposes that no movie ticket in the state shall cost more than ₹200, inclusive of entertainment tax. Crucially, the cap applies regardless of the movie’s language, theatre format, or class of seating. This will effectively end the practice of charging higher rates for premium screens or luxury formats.
“In rule 55, in sub-rule (6), the following proviso shall be inserted… ‘Provided that the cost of the ticket of each show in all theatres of the state, including multiplexes, for all language films shall not exceed Rs . 200 inclusive of entertainment tax,” the draft notification read.
Additionally, the proposed amendment includes the omission of Rule 146 from the existing 2014 rules. “In the said rules, rule 146 and the entries relating thereto shall be omitted,” it said.
PVR-Inox Braces for Revenue Dent
Industry analysts, including Elara Capital’s Karan Taurani, warn the move could slash average ticket prices in Karnataka by nearly 30%. For multiplex major PVR-Inox, that could mean a 3.7% drop in average ticket price, potentially cutting revenue by 2.2% and EBITDA by 1.8% between FY26 and FY28. Shares of PVR-Inox slipped nearly 1% in early trade on the BSE following the news.
Well, this isn’t the first time Karnataka has tried to regulate ticket pricing. A similar move in 2017 was legally challenged by multiplex chains and led to a partial rollback in 2021 after the Karnataka High Court allowed pricing flexibility for premium formats. The new draft omits those exemptions, triggering speculation that another legal battle may be on the horizon.
Film Industry Divided
While multiplex operators warn that the cap could jeopardize profitability, especially in expensive locations like Bengaluru malls. However, regional film bodies such as the Karnataka Film Chamber of Commerce and the Karnataka Film Exhibitors Association have welcomed the move. They believe this cap could help Kannada films attract larger audiences.
“Since distributor revenue is linked to net ticket collections, a 30% price cut would directly impact exhibitor earnings, especially in premium malls where high rentals and reduced ticket pricing may raise the occupancy breakeven threshold above the current ~18–20% per show,” said Karan Taurani, senior vice president at Elara Securities.
“While the government’s intent is to make cinema more affordable and promote local language films, historical trends indicate that content quality plays a more critical role in driving footfalls than ticket pricing,” Taurani added.
Public Has 15 Days to Comment
With ticket pricing squeezed, cinema operators may increasingly rely on food and beverage (F&B) sales to maintain profitability. High-end formats with steep capital investments, such as recliner seats and IMAX screens, could see slower returns and possibly deter further expansion under the new cap.
The draft rules, published under Section 19 of the Karnataka Cinemas (Regulation) Act, 1964, are open to public objections and suggestions for 15 days from the publication date in the Official Gazette. After reviewing the feedback, the government will decide whether to finalise the policy through a gazette notification.
