Just like train, bus, and flight tickets, movie tickets need broader accessibility. They should be available on hundreds of websites and apps to increase visibility and tap into untapped audiences. However, the current ticketing ecosystem for theatrical movies is monopolized by just two or three companies. These entities, having lobbied with theatre owners, have blocked access to the seat selection APIs. This anti-competitive practice prevents new players from entering the ticketing business, forcing movie producers to bear exorbitant marketing costs. Ironically, these efforts benefit theatres, which use increased footfall to sell more popcorn.

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The monopolistic nature of the movie ticketing business has created an unhealthy environment. Ticketing companies charge a high convenience fee per ticket, splitting the profits with theatre owners. Meanwhile, the producer—the creator and owner of the movie—suffers losses. Without the producer's No Objection Certificate (NOC), other parties continue to profit from selling tickets to their content. This unethical practice further burdens the producer, who is excluded from accessing customer databases for retargeting campaigns. As a result, producers are forced to invest heavily in marketing for every new film.

To make matters worse, some ticketing companies pay substantial sums to theatres, adjusting this cost in the convenience fee charged to consumers. This practice deters new entrants, as theatre owners expect similar payments from potential competitors. This vicious cycle enriches ticketing companies and theatres at the expense of the producer, causing a significant financial strain on the movie production community.

The Need for Change The current system fosters monopoly and duopoly, giving undue control to ticketing companies and theatres, enabling them to arm-twist producers. With 90% of movie producers incurring losses, the government must step in to break this unhealthy cycle. By enforcing regulations that open the market to more players, competition can flourish, ensuring fair pricing and reducing convenience fees for ticket purchasers.

Conclusion Opening up the movie ticketing business to multiple players would create a healthy, competitive ecosystem. It would ensure fair revenue distribution, empower producers to have a direct connection with their audience, and reduce consumer costs. Strict government intervention is crucial to dismantle monopolies, foster innovation, and save the movie industry from its current snowball effect of producer losses. The time to act is now—before the creativity and livelihoods of countless producers are stifled under the weight of this unjust system.

An Article by Arunkanth V.

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