Industrial Economist (IE): What makes NY Cinemas unique? Satish Kottakota (SK): Genuine passion for cinema, which goes beyond business sets us apart. This results in celebration of local culture, whether it’s Rajasthan’s heritage or Gujarat’s distinct vibe. While “Indianisation” has been the recipe so far, the brand is now shifting towards delivering world-class global cinema experiences alongside cultural richness. Recently, we were recognised as the Emerging Cinema Chain of the Year at Big Cinema 2025. This has been achieved through constant innovation and memorable customer experiences.
IE: What is the plan for 200 screens by 2027?
SK: By focusing on high-quality customer experiences, we quickly became one of Gurgaon’s top cinema destinations. Building on that success, we are ambitiously planning to expand into south India by signing up locations in Bangalore, Hyderabad, Vijayawada, Visakhapatnam, Chennai and Kochi. Our approach balances growth across tier-1 and tier-2 cities, with a willingness to enter tier-3 where there is scope for financial viablity. Looking ahead, we have 60 screens scheduled for launch by 2027 and targeting 150+ by 2027, depending on market conditions. South India will be the next growth hub, with stronger occupancy prospects, and our journey to 200 screens will be driven by careful partnerships and strategic expansion.
IE: How will the brand adapt to the unique cinema culture of south India?
SK: Karnataka presents a fascinating challenge, with half a dozen languages spoken, making it a microcosm of India. The brand’s strength lies in precise programming, selecting the right content at the right time for each audience segment. This will be managed with our in-house programming expertise supported by invaluable connections in film industry, like Ajay Devgan (Founder of NY Cinemas) and Kumar Mangat. This will also allow us for easy handling of distributors and content across India.
IE: With ticket sales barely covering costs, how do you balance revenue?
SK: Distributors, real estate, operations and utilities take hefty shares of revenue. To contain cost on real estate, we bring in land owners as partners. Depending on the city, developers invest anywhere between 50 per cent to 70 per cent. At the same time, ticket sales alone cannot sustain operations. If the average ticket is Rs 240, customers typically spend another Rs 150 on Food and Beverages (F&B). F&B sales, advertising and events are therefore critical for revenue. On the consumer side, a typical Indian family spends around Rs 1000 per month on cinema, and this trend is growing with rising incomes and renewed post-COVID enthusiasm for the big screen.
IE: Why does pricing vary across tier-1, -2, and -3 cities?
SK: Our goal is to deliver a digitally savvy, highly consistent experience whether in a metro or a tier-4 town. Customers should enjoy the same quality of service. At the same time, pricing must reflect local realities. A crore earned in Hyderabad does not equate to the same spending power in Vizag or Guwahati. So we adjust accordingly, sometimes lowering prices by up to 25 per cent in some places. Interestingly, some tier-3 cities like Bhuj or Rajkot have strong per capita incomes, so they sustain near-metro pricing, while more backward districts in Andhra Pradesh or Bihar require more affordable rates.
IE: Why does the industry lack transparency in data?
SK: Currently, no central body tracks ticket sales, pricing or food sales uniformly. Each exhibitor keeps proprietary data. There is potential for an industry self-regulatory body or association, perhaps government-supported, to share crucial aggregated data, benefiting exhibitors and customers by fostering a clearer overall picture.
IE: Is OTT a competitor or a complement to theatrical releases?
SK: The answer lies in timing. As long as there is an 8+ week gap between theatrical release and OTT streaming, the cinema experience remains irreplaceable and complementary rather than competitive. In fact, selective streaming content licensed for cinema halls can enhance offerings, making OTT a partner.
IE: What is the future of Indian cinema and NY Cinema’s place in it?
SK: The industry is poised for double-digit growth. Cinema experience will dramatically improve with upgrades in sound, visuals, food, seating and lighting. Standardisation will lower capital costs, though consumer prices may remain stable. Market consolidation will likely leave just 4-5 big players. NY Cinemas aims to grow both organically and inorganically through acquisitions while focusing on profitability, viability and customer experience.