What is the Full Form of PVR?
Do you like to go to the movies? This question appears absurd. After all, who doesn’t want to? Everyone loves to watch a movie on a big screen, with a comfy seat, surrounded by a happy audience, powerful loudspeakers, and tasty snacks. The intense atmosphere in that dark room lifts our spirits. PVR Cinemas is an upscale multiplex theatre chain in Sri Lanka and India. The full form of PVR is Priya Village Roadshow. They are well-known for the high quality of their viewing experience. This article will talk about the PVR cinema in detail.
History of PVR
PVR Cinemas is one of the largest theatre chains in India, and it was formally established in Gurgaon in June 1997. PVR Cinemas is well-known for providing its customers with excellent pictures and sound quality. In addition, they pioneered multiplex theatres in India through PVR Anupam in Delhi.
In terms of the number of screens, the PVR group has the most significant number of screens. Across the country, the PVR group runs 846 screens. It offers the best movie experiences. PVR Cinemas currently operates in 71 Sri Lankan and Indian cities, with an overall seating capacity of approximately 1.82 lakh seats.
Founder of PVR
Ajay Bijli founded PVR Cinemas. He is also the firm’s chairman as well as its managing director. He started working in the family business after receiving his B.Com. from Hindu College. Then, in 1995, he co-founded PVR Cinemas with an Australian company. PVR Cinemas began operations in 1997. The company was founded as a joint venture between an Australian company, Village Roadshow, and Priya Exhibitors, with over 1,000 operating screens. PVR was created as a 60:40 joint venture. The company was the first in India to introduce the concept of Multiplex.
Business Model of PVR
After learning the full form of PVR, let’s discuss its business model. PVR Cinemas’ primary activity is the film screening business, and they also work on producing and distributing films in India. In addition, PVR operates theatre advertisements, food and beverage sales, and ticket sales.
The company manufactures and sells foodie popcorn, a popular snack at PVR movie theatres, on several airlines, and on Indian railways. A variety of e-commerce websites also offer online shopping for this foodie popcorn. In addition, house cleaners for residential housing are provided by V Pristine, a cleaning service under the banner of PVR.
Revenue Model of PVR
Movie ticket sales generate most of PVR Cinemas’ revenue, and box office receipts account for approximately 46% of their revenue. The next highest revenue generator is beverage and food sales, which account for 29% of the company’s profits. The excess 15% of income comes from advertising, movie sales, and other unassociated activities.
What are the Challenges Faced by PVR?
PVR faces various challenges despite being a successful brand, unlike other businesses. Some of them are as follows:
#1 Competition
PVR’s steady growth over the years was helped by its early entry into the NCR multiplex market and pioneering focus. However, the emergence of new rivals in 2001 posed a challenge to PVR, even in marketplaces where it was the market leader. For example, Satyam Cineplexes, based in New Delhi, operated 12 screens in three locations in Delhi in 2005, with a cumulative capacity of more than 5000 seats, and planned to invest more than Rs. 25 billion in cineplexes across the country. It added 100 displays across the country by 2008 and has become a significant player on the national stage.
#2 OTT Platforms
OTT Platforms are the next major issue, affecting not just PVR Cinemas but the entire company. PVR raised ticket prices to compensate for revenue losses. Furthermore, significant credit is given to PVR for the revolutionization of Indian cinema. However, OTT platforms have already addicted people, discouraging them from going to the movies. Since the pandemic, the way people consume entertainment content has changed dramatically, and the rapid rise of the OTT space has upended the entertainment industry.
#3 Pandemic
During the lockdown, OTT platforms replaced the theatres. Even though the lockdown has ended and the theatres are open for business, many films are still being released in OTTs. As a result, the future of movie theatres and cinemas may be jeopardized.
#4 YouTube User-Generated Narratives
Young filmmakers can showcase and market their work on massive, inexpensive platforms like YouTube. YouTube is no longer the destination for amusing cat videos. Anyone with the time, money, and devotion can now create artistic television films and shows that can be viewed, creating a challenge for the footfall of cinemas like PVR.
Conclusion
Entertainment has become an integral part of our lives, and entertainment options like theatres give us a break from our monotonous lives. PVR cinema has played a significant role in adding color to our life. PVR is indeed the leading company and has rapidly expanded across India. Additionally, Indian cinema works credit PVR with significantly revolutionizing the industry. I hope this article has helped you understand the full form of PVR and the various facets related to it!
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