-By Kevin Lally

With bragging rights to the biggest film industry in the world, it ought to be no surprise that India’s largest theatre circuit, Adlabs Cinemas, would rebrand itself as BIG Cinemas. An essential part of the country’s giant entertainment conglomerate Reliance Big Entertainment (which recently made big news by closing a deal with DreamWorks to create a new production company), BIG Cinemas and its chief operating officer, Tushar Dhingra, are being saluted at CineAsia in Macau as International Exhibitor of the Year.

Worldwide, BIG Cinemas currently has 423 screens, including 186 in India, 180 in the U.S., 51 in Malaysia and six in Mauritius. Plans call for the circuit to pass 250 screens in India by March 2009 by converting single screens to multiplexes at a cost of 10 to 40 million rupees (US$210,000 to $840,000) per location. Currently, 40 of its 186 Indian screens are single theatres.

“We aim to be present over all significant film territories that contribute over 80% to domestic box-office collections,” Dhingra says of BIG’s expansion plans. “Our strategy is not only to set up cinemas in malls but also to take over current properties, renovate and operate them, taking advantage of their considerable existing infrastructure and brand value. This is a rapid and cost-effective way to deliver our commitment to providing audiences across India—particularly tier 2 cities—access to BIG Cinemas’ world-class cinemas at extremely competitive rates.”

Dhingra is also helping to bring India into the megaplex era. “To begin with, we have [contracts for] eight megaplexes in cities like Ludhiana, Chandigarh, Lucknow, Mumbai, Hyderabad, Delhi, Bangalore and Chennai. A megaplex is a huge entertainment destination comprising 18 to 20 theatre screens, as opposed to a multiplex, which houses five to six screens. Anything that makes for enjoyable viewing will be screened here. Customers will even be able to watch a cricket match or a soccer game in these megaplexes. We will offer a variety of content and something for everyone. Apart from movie auditoria, each unit will also have gaming zones, specialized kids zones, food courts and other value-added services to draw in crowds.”

In addition, BIG Cinemas is looking to bring “6D” multi-sensory attractions like the one at its Agra location near the Taj Mahal to other tourist destinations and to international airports.
The circuit will also follow up its recent majority acquisition of Malaysia’s 51-screen Lotus Five Star Cinemas chain with an expansion into Kathmandu in Nepal, Dhingra reveals.

“Since the year Reliance ADA Group came in three years ago,” Dhingra details, “our screen count has grown 300 percent year-on-year. And we have transcended the price and city barrier. We do not restrict growth to simply geographical expansion. Ever since BIG Cinemas launched the first IMAX dome theatre in India (the largest in the world) in 2001, we have been looking at providing new experiences to our audiences, be it 3D, 6D, megaplexes, etc. Recently, we also crossed the milestone of over 10,000 successful shows in the true 2K Digital Cinema format and we were the first cinema operator in India to start rolling out digital cinema using Hollywood-standard DCI-grade projectors and servers, when we commenced our digital test-bed network in April this year. BIG Cinemas will continue to explore other markets where we feel there is promise. Fortunately, Indian entertainment software has so much global potential and we now have the confidence to take our products and services anywhere in the world as well.”

BIG Cinemas currently has 24 digital-cinema installations, with plans to digitally upgrade 500 screens in India in the next 18 months. “We experimented with e-cinema in 2004 with a rollout of 94 screens, but now we have divested that completely and are going whole hog on d-cinema,” Dhingra confides.

Dhingra proudly declares, “We were the first in the world to commercially distribute digital films using optic fiber cable [OFC] distribution, which is faster, more secure and more reliable than any type of physical distribution of film. OFC-transmitted digital-cinema distribution benefits all stakeholders: audiences on account of the clarity of images and better sound quality; distributors as print costs are cut and delivery time saved, and exhibitors as projection is improved, attracting more viewers. Most importantly, the system curbs piracy, and enables three-dimensional viewing, as well as live viewing of events such as cricket matches and music concerts without the aid of satellite.”

BIG Cinemas uses 2K projectors from Barco and Christie, and servers from Doremi and Qube—and its 80,000 km of optic fiber cable was enabled by another Reliance subsidiary, telecom operator Reliance Communications.

Dhingra is well-positioned to evaluate the future of movie exhibition in India. “The multiplex business has grown tremendously in India and is currently said to be contributing to almost 80 percent of a movie's box-office revenue. Current multiplex screens are expected to double in the next four years from 650 screens to 1,300 screens. The Indian film industry, now worth about $2 billion, is expected to grow to $4.3 billion by 2011.

“Despite being a country that is the highest film producer in the world and with the highest number of film admissions in the world, we also have the dubious distinction of being the highest 'entertainment-taxed' country in the world. India has only about 12 screens per million in comparison to the U.S., which has about 117 screens per million. There is thus an estimated shortfall of 40,000 screens in the country. India has the maximum number of film viewers compared to the Western world and the number is growing. But the number of cinemas per thousand people is still less in India. So there is enough room for growth and we plan to fill the gap.”

But big obstacles remain. “In a developing market like ours, the multiplex industry is facing several challenges due to outdated laws and high entertainment taxes, despite the fact that Indians are movie-crazy and Bollywood produces the largest number of films globally. The highly burdensome tax regime is posing a serious challenge… Additionally, cumbersome pre-licensing procedures hamper the ability of multiplex players to execute projects on time. Most multiplexes get delayed due to construction bottlenecks and legal problems. Thus, even as there is potential, there are hurdles that could impede our growth.”

Dhingra expects some 30 million visitors at BIG Cinemas in 2009. The circuit now comprises roughly 27% of the total branded screens in India and accounts for nine to 14% of total box office for major releases, he estimates. English-language films account for about nine percent of business, he says, noting that Hollywood content dubbed in regional languages is gaining popularity.

Amenities at BIG Cinemas include “Baby Bliss,” special shows for couples with young children, and “Silver Screen,” a movie program for senior citizens. Purchases are made easier with Mobile Box Office, a GPRS-based application that allows consumers to book tickets on their mobile phones, and EasyTicket, India's first virtual pre-paid card in this category. BIG Cinemas was named "Retailer of the Year in Entertainment” for two consecutive years at the India Retail Summit and "Most Admired Retailer in Entertainment" at the 2007 Images Retail Awards.

After early experience in hospitality and customer service at Taj Hotels, Dhingra began his movie industry career at head of Warner Bros.’ northern regional office. In 2001, he moved to PVR Cinemas, rising to VP, sales and marketing. When he joined Adlabs in 2005 as chief operating officer, the circuit had a mere 23 screens. Tushar Dhingra has been thinking BIG ever since.