The Average ticket price for Hindi films has seen a constant rise over the last 25 years or so. It was around Rs 10 in 1993 and Rs 131 in 2017 but this year there looks to to stagnation with the ATP (Average Ticket Price) holding at a similar level to 2016. This is the first time it have ever happened in the last 25 years.

This is basically why there is a drop in theatrical business in 2017 as footfalls have been coming down over the last four years but this has always been offset by a rise in ticket prices for the overall business to stay in the same rage but with no ticket price rise in 2017 has mean a fall in overall theatrical business.

The reason why ticket prices have not been able to grow is GST. Ticket prices took a dip in July when GST came in although they have recovered to normal pre GST rates now.

When GST came into play the NETT ticket rate had to keep the same and only the tax changed so if there was any benefit it would go to the consumer. An example of this is that in June a ticket costing Rs 280 in Delhi city would have a NETT value of Rs 200 and when GST came in then the NETT value had to kept at Rs 200 so the benefit went to the consumer if any and the GST and whatever other charges had to be applied on the Rs 200 which meant the  ticket would cost Rs 260-265 depending on what other charges there were on the ticket.

Slowly the exhibitors have bought the rates back to original which has also enabled to the NETT to go up as the taxes are less in most areas then when it was entertainment tax though some areas like Punjab and Andhra have suffered higher taxes post GST. This structural change in taxes has ensured the average ticket price has not gone up this year.  The rise in ticket prices over the last fiver years is as follows

2013 +7.87%

2014 +7.42%

2015 +6.86%

2016 +4.45%

2017 - Flat (expected)

The highest ever rise was seen in 1995 when prices went up 30% from the 1994 average led by the historic blockbuster Hum Aapke Hain Koun which enabled theaters to get upgraded as families were prepared to pay for this type of content.