Reliance Jio Fiber’s ‘First Day First Show (FDFS)’ service may not impact the multiplexes immediately as predicted earlier. The FDFS monthly subscription price ranges from Rs 2,499 till Rs 8,499. The eligible Jio Fiber plans for FDFS service include Gold, Diamond, and Platinum plans. The new service is touted to revolutionise the film viewing in India. To recall, Mukesh-Ambani led Reliance Jio has announced the commercial launch of Jio Fiber at 42nd Annual General Meeting (AGM).
Premium subscribers can watch released movies right from their homes
The three Jio Fiber plans that offer the FDFS service include the Gold plan (Rs 2499), Diamond Plan (Rs 3,999) and the Titanium Plan (Rs 8,499). The ‘First Day First Show’ service allows subscribers to watch newly released movies on the first day itself from the comfort of their homes. The service is scheduled to roll out somewhere around in the middle of 2020. Many Industry experts predicted the new service to disrupt film viewing in India thereby impacting the Multiplexes and Single-screen cinema exhibitors. However, analysts now predict that the impact of FDFS service on Multiplexes and Single screens may impact on a large scale as expected.
Pricing of Jio Fiber plans is a key roadblock for the success of FDFS service
As evident from above, the FDFS service is limited to Jio Fiber Premium plans starting from Rs 2,499. At such premium pricing, only the Elite and higher-income subscribers are likely opting for such plans. Hence, there would be a major slump in the demand for Multiplex and Single screens. One can take in to account a similar analogy when the big streaming platforms were launched in 2014. Even during that time, many speculated the Revenues of Multiplexes and theatres to decline drastically. However, on the flip side, the scenario is entirely different!
An ETIG analysis of financial performances of Multiplexes and Inox revealed rather astonishing facts when compared over the years. The Revenue per screen for Inox rather increased from Rs 2.9 crores in FY19 as compared to Rs 2.6 Crores in FY16 and Rs 2.4 Crores in 14. On similar lines, Revenue per screen for PVR increased to Rs 4 Crore in FY 19 in comparison to Rs 3.2 Crore in FY 09 and Rs 3.1 Crore in FY 14.