Popcorn also has a story to tell

We have heard enough of Unicorns, that is to say, what they do, how they earn, how much they spend, and their soaring valuations, etc. For a change, let us understand the story of Popcorn now.

Before getting to the story, we have to set the background.

India has around 8500 movie screens; each screen has an average of 300 seats. All screens will, usually, run 4 shows in a day. They are open every day! A simple arithmetic calculation shows that around 1 Crore of people (at maximum capacity) can watch a movie every single day. Can I consider Rs.250 as per ticket rate? If so, the total collection per day will be 255 Crores. Assume, the theatres run at 60% capacity and big movies are screened in 4000 or 5000 screens in the first few days of release, you will get the fancy number of Rs.100 Crore collection per day!

So, a hyped movie garnering Rs.300 Crore in the first week or Rs.1000 Crore in the first 25 days is a doable proposition.

I am sure moviegoers will agree with me that at least 10% of the people who visit the theatre eat popcorn. Even at 60% occupancy, a massive 6,00,000 people eat popcorn in the theatres per day. The average price per popcorn pack is Rs.150. This means Rs.270 Crores worth of popcorn is sold in theatres per month or over Rs.3,000 Crore worth of business in a year.

Now show me one Unicorn making this kind of business, that is what Popcorn is asking!!!

A slight variation in the rainfall, the consequent reduction in the production of corn, is impacting the share price of listed theatre management companies!!!

So, friends, not just Unicorns, even Popcorn can make a world of difference in business. The moral of the story is that everyone has a role to play. Cheers! 

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About B E Kumar Prasad

B E Kumar Prasad
He is a Practicing Chartered Accountant in Bengaluru, India. He has 25+ years of experience in income tax, business setup, and NRI matters. He is also an Insolvency Professional and Registered Valuer (F&SA).Prasad welcomes your comments and questions. Please email him at simplifiedlaws20@gmail.com

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