Movie ticket price cap: Why Karnataka has locked horns with multiplexes, film biggies

The Karnataka government’s recent notification capping movie ticket prices at Rs 200 across the state has triggered a tussle with cinema operators. A few leading producers, along with the Multiplex Association of India (MAI), have moved the Karnataka High Court, calling the move “retrograde, irrational, unfair and against the interests of the Indian cinema industry.”

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MAI and others have challenged the notification on the grounds of being “potentially unconstitutional.” Representing nearly 80 per cent of the multiplex industry across 18 regions in India, MAI argues that the state’s decision to regulate ticket prices infringes upon the fundamental right to carry on business under Article 19(1)(g) of the Constitution.

Court reserves verdict

Justice Ravi V Hosmani has reserved his order on the interim plea after hearing petitions filed by the Multiplex Association of India (MAI) and film production houses, including Hombale Films, Keystone Enterprises, and VK Films. The petitions challenge the recent amendment to the Karnataka Cinema (Regulation) Rules (KCRR), notified on September 12, which capped movie ticket prices at Rs 200, except in multi-screen cinemas with premium facilities of 75 seats or fewer.

The petitioners argued that the state government lacks the authority under the Karnataka Cinema (Regulation) Act, 1964, under which the rules were framed, to fix or regulate ticket prices. According to their counsel, the Act is intended to govern the licensing and regulation of cinema theatres, not the pricing of tickets for film exhibitions.

Support for price ceiling

The Karnataka Film Chamber of Commerce (KFCC) has backed the state government’s move to cap movie ticket prices at Rs 200, opposing petitions filed by multiplex operators and producers. “The government acted on our representation, and the cap was essential,” said KFCC president M Narasimhulu. The state, too, defended its decision, calling it a step in the larger public interest to make cinema affordable for middle- and lower-income groups. Officials argued that with streaming platforms shrinking the theatrical window, affordable pricing would help revive audience engagement.

“Even with ticket caps, multiplexes remain out of reach for the middle class, as most cannot afford water or snacks. The 2018 government order allowing outside food had little impact,” said Sudheendra Venkatesh, a leading PRO of the Kannada film industry.

The Multiplex Association of India (MAI), however, contends that the cap undermines sustainability, pointing to high infrastructure and operating costs in premium theatres. They argue that the price cap can disrupt the entire cinema eco-system by affecting the profitability of theatres and the value of digital and satellite rights for films, potentially threatening the sustainability of the multiplex model.

But Karnataka’s exhibition sector has dismissed these claims as “illogical.” Local producers welcomed the decision, hoping it would bring back family audiences. “We’ve been demanding a cap for a decade. Multiplexes used to charge Rs 1,000–2,000 during big releases, which kept families away. At Rs 200, audiences will return, and producers will benefit,” Umesh Banakar, president of the Karnataka Film Producers’ Association (KFPA), told The Federal. He credited CM Siddaramaiah for supporting the Kannada film industry in crisis.

South states set example

Acknowledging Banakar’s arguments, KV Chandrashekar told The Federal that the culture of exorbitant ticket pricing only began after COVID-19. “When I was KFCC president, this practice didn’t exist. With the price cap in place, the industry is bound to revive,” he said. Calling the move the end of a long struggle, Chandrashekar recalled that producers, distributors, and exhibitors had even staged protests outside the KFCC office.

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He also pointed out that neighbouring states such as Andhra Pradesh, Telangana, and Tamil Nadu had already capped multiplex ticket rates between Rs 150 and Rs 200. “This is not a sudden decision by the government. In fact, Chief Minister Siddaramaiah had promised the cap in his 2025–26 budget speech,” he added.

There is substance in the argument of Chandrashekar. Andhra Pradesh, Telangana, and Tamil Nadu already have caps on ticket prices, though they allow higher rates for big-ticket releases or during peak times. Kerala follows a regulated pricing range coordinated with local bodies, while Maharashtra is also considering a cap similar to Karnataka’s.

“In Maharashtra, ticket prices currently range from Rs 150 to Rs 400 across screens and multiplexes, with certain premium theatres charging upwards of Rs 1,000 depending on the facilities,” he explained. “Even in Karnataka, the cap excludes boutique or premium-format cinemas with 75 seats or fewer.” Chandrashekar questioned why multiplex operators and film industry heavyweights had not pursued legal action when Tamil Nadu and Andhra Pradesh introduced similar caps.

Why bigwigs oppose cap

According to 2024 industry data, India has around 4,000 multiplex screens and about 5,500 single-screen theatres, while Karnataka alone accounts for more than 260 multiplexes and 630 single screens. This raises the question of why multiplex operators and big producers are opposing the state’s cap on ticket prices.

The reason is very clear: “State capping will hurt big-budget films with huge star casts that depend on recovering costs in the first week. The move particularly impacts big production houses like Hombale Films, which dominate the market. It also affects Bollywood and Hollywood releases with budgets exceeding Rs 100 crore. With the cap, audiences will now pay Rs 236 per ticket, inclusive of 18% GST, a rate that came into effect on September 13. Naturally, multiplexes are feeling the pinch,” explained Kannada film producer KM Veeresh.

However, others in the industry see a silver lining. “Increased footfalls will ultimately help producers recover their investment over time,” said Sa Ra Govindu, former president of the Karnataka Film Chamber of Commerce (KFCC).

Years of struggle pay off

“Seven years of consistent struggle has finally yielded results,” said SV Rajendra Singh Babu, producer and former president of Karnataka Chalanachitra Academy. He added that government intervention would bring audiences back to single screens and multiplexes alike. Multilingual actor Kishor, who was the ambassador of the 16th Bengaluru International Film Festival, echoed this view, urging the government not to bow to the “arm-twisting tactics” of cinema bigwigs, especially MAI.

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Capping ticket prices, though opposed by multiplex operators, is not new. The Siddaramaiah government attempted it in 2017, but the Karnataka High Court stayed the order because the notification was issued by the wrong department. “This time, every norm has been followed. The aim is to make cinema more accessible while supporting Kannada films that struggle against higher-priced non-Kannada screenings,” argued film economist N Sreedharamurthy.

Narasimhulu recalled that the state had issued a draft notification in July 2025, capping ticket prices at Rs 200 (inclusive of entertainment tax) across all theatres. After receiving objections, the government revised the order, exempting boutique or luxury screens with fewer than 75 seats. “Even after agreeing to these concessions, multiplexes and big producers resorted to legal recourse,” he regretted. The state government has, however, defended the move firmly, citing public interest.