Bengaluru: The Karnataka government has introduced new regulations capping movie ticket prices at Rs 200 (excluding taxes) across the state, a move aimed at making cinema-going more affordable. The announcement was made on Friday through amendments to the Karnataka Cinema (Control) Rules, 2014, which will now be known as the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025.

Price ceiling and exemptions

Under the new rules, Rs 200 is the maximum ticket price permitted in the state. However, the order includes an important exception—multi-screen cinemas with premium facilities and 75 seats or fewer are exempted, giving them the flexibility to maintain higher pricing structures.

The regulations will formally come into effect once they are published in the Official Gazette. The government has cited Section 19 of the Karnataka Cinema (Control) Act, 1964 as the basis of its authority to regulate ticket pricing and cinema operations.

Background to the decision

The new cap follows a draft notification issued on July 15, 2025, when the government invited industry feedback with a 15-day submission window. According to officials, the decision to re-introduce the cap comes after requests from the Kannada film industry, which has long demanded affordable ticket rates to boost regional cinema’s reach.

This is not the first time such a measure has been attempted. In 2017, during Chief Minister Siddaramaiah’s previous tenure, a similar Rs 200 ceiling was introduced but faced hurdles. Multiplex operators contested the decision in the Karnataka High Court, raising concerns about revenue losses and sustainability. The enforcement eventually weakened, and the cap was lifted.

Now, the Siddaramaiah-led government has revived the policy with the aim of strengthening the local film industry while ensuring audiences have access to reasonably priced entertainment.

How multiplexes make money

The impact of this regulation will likely be felt across multiplex business models, which depend on three key revenue streams:

  1. Ticket sales: The most visible revenue source but shared with film producers. Revenue splits typically favour producers in the first weeks of a movie’s release, with theatres retaining a larger share during extended runs. Successful films may offer producers bonuses, but for long-running movies, theatres can retain up to 70% of the earnings.

  • Food and beverages (F&B): The most profitable segment for multiplexes. Cinemas keep 100% of F&B earnings, with high-margin sales of popcorn, beverages, and snacks forming a critical part of their income. For instance, PVR Cinemas earned Rs 1,145 crore from F&B against Rs 1,878 crore from ticket sales in FY 2023–24.

  • Advertising: In-theatre advertising brings in up to 15% of multiplex revenue, with brands paying premium rates for exposure to captive audiences.

    • Analysts believe that while the ticket cap could reduce box office revenue for multiplexes, F&B and advertising segments may soften the blow. However, smaller single-screen theatres could benefit as the price parity reduces competition from high-priced multiplexes.

    Conclusion

    The new rules are set to reshape Karnataka’s cinema ecosystem by balancing audience affordability with the sustainability of theatres. Whether this regulation can withstand legal and industry pushback—as seen in 2017—remains to be seen. For now, movie-goers across the state are expected to welcome the move as a step towards making cinema more inclusive.