Our digiplexes give a multiplex experience: Sushil Chaudhary

An engineer by qualification and a serial tech entrepreneur by heart, Sushil Chaudhary is among the pioneers who played an integral role in making India's IT capability presence felt in Latin America. Starting his entrepreneurship journey with Mann-India in the LatAm region, he is now the founder and chief executive officer of Picture Time Digiplex Pvt Ltd that is bringing digital cinema experience and IoT (Internet of Things) to the parts of rural/ interiors of India that have traditionally not been served. In conversation with Ashish K Tiwari, he speaks about the mobile digiplex start-up that's building an affordable ecosystem of technology driven by a cinematic experience, which will take India's box-office revenues to 10 times the level in the next five years.

What factors motivated you to launch this venture?

If you look at the current screen density in India, it is very low India and the numbers have come down drastically from 25,000 screens to around 11,000 at present. While cable television and digital revolution played their role in this decline, the main reason in my view was that single screen cinema theatre business could not adapt itself to the changing times. Particularly so in rural India, the 'tambu talkies' format started dying. While multiplexes have taken over the market in the metros and mini metros, it's not penetrated rural India which is deprived of the grand cinematic experience. With the mobile digiplex concept I am attempting to revive the cinema experience in every town/ village in the remotest part of India.

Tell us about the unique features of this concept?

The cost of setting up and operating a facility was the key reason why multiplex and single screen theatres haven't ventured into the rural markets. I started with a plan to design a facility that would cost less than Rs 1 crore, is mobile and can be operated with minimal staff but doesn't compromise on the quality of delivering a new-age cinematic experience.

After a few iterations, we now have a van-mounted mobile digiplex that costs around Rs 50 lakh and comes fully equipped with the state-of-the-art technology to deliver digital, high definition (HD) picture with 5.1 Dolby surround sound. All this is delivered in an inflatable, air-conditioned theatre made of all-weather and fire-retardant material. With just three to five employees, the mobile theatre can be installed within two-and-half hours and has a seating capacity of between 100 and 180 people. The ticket pricing is in the range of Rs 30 to Rs 70.

How are you ensuring the overall cinema-going experience?

We have ensured that the entire experience being delivered is akin to any multiplex or single-screen theatre experience one gets in the metro/mini metros. There is no compromise on the audio/video quality and the ambience. The staff dressed in company uniform is well-trained, we do not allow tobacco, pan-masala, bidi-cigarette, etc, inside the theatre premises. It's a complete family zone that's been created and we always screen new film releases as against the open air, video-on-wheels approach.

Our show tickets are sold via mobile ticketing application. We have the camera inside the theatre that records every show thus maintaining a high level of transparency (tickets sold vis-a-vis people inside the theatre) with cinema producers and distributors with whom we have a revenue-sharing agreement for screening the new releases. For audience engagement, we also have a audio-video review feature wherein people have the opportunity to win movie tickets for the next new film release. This apart, we have a live chat feature with Bollywood film actors wherein audience gets to interact live with them. At times certain communities in the village even book the entire theatre akin to private shows in metro cities.

How much have you invested in this business?

I'd invested Rs 1.5 crore initially in 2015 to launch the prototype or proof of concept. Then around Rs 5 crore was raised from friends and family as improvements were being made to finally arrive at the fully equipped van-mounted mobile digiplex unit version. We have recently raised Rs 25 crore from a clutch of investors led by Ajay Relan of CX Partners. This money will help us grow from 10 to 120 van-mounted mobile digiplex units covering 14 states across India. The plan is to reach 500 units for which we will have to raise up to Rs 150 crore in the coming years. Thereafter, we will list the company under the SME exchange.

What is the frequency of people watching movies in your theatre?

At Rs 30 for a ticket on an average, women watch the movie at least twice. The male audience watches a film at least three to four times. Most of our theatres enjoy 50% occupancy levels, which is very commendable in this line of business. Every van-mounted unit that we operate today is profitable. While it takes three months for each facility to become profitable currently, a year from now the units will become profitable from day one.

Do you have additional revenue streams apart from ticket sales?

Various government schemes for the rural areas get advertised via our theatres so that is one additional revenue scheme. The government has also recognised my venture in the mobile digital movie theatre category that ensures we get a new release. As a result, we are able to negotiate with consumer goods companies to show their promotional material. We also negotiate a commission on packaged food/ snacks and beverages that are sold only at MRP. Prior to goods and services tax (GST), there were quite a few states who were not levying entertainment tax on our business. Though that's not the case anymore. We have requested the GST Council to either exempt or put us in the lower-tax bracket of 5% versus 18% at present.