Apollo Group to invest in Kerala's theatres

Providing a new dimension to viewing experience of the film buffs of Kerala, UFO Moviez, part of the Rs 4000-crore (Rs 40 billion) Apollo Group, plans to install as many as 250 digital cinema systems at an investment of Rs 40 crore (Rs 400 million) in the state, by March next year.

"Of the total 900 theatres in Kerala, we are targeting 250 theatres for installing the digital cinema systems. With an approximate investment of Rs 15 lakh per system, our total investment would be Rs 40 crore," said Rajesh Mishra, CEO, Indian operations.

 He added that UFO's network operations and data convergence centres, based out of Chennai, currently require an investment of Rs 10 crore (Rs 100 million), which is in addition to the overall investment of Rs 200 crore (Rs 2 billion) for developing the high definition digital encoding system.

 UFO plans to provide a wide distribution channel to the Kerala film industry in a cost-effective manner. "Right now, we have 72 installations and the remaining ones will be completed by March 2008," Mishra said.

 Elaborating the company's plans, he said, "Kerala has a system of releasing films across towns in phases. Around 47 centres are classified as release centres and the films can release only in these centres and not outside. Once the film has completed its run in a release centre, it gets transferred to the second set of centres. UFO would be first targeting the A class release centres and later B and C centres simultaneously".

"We have already started our work by installing 70 screens and are on our way to 250 screens. The company has also conducted demos at prominent theatres in Kochi, Kottayam, Kollam, Thiruvananthapuram, Palakkad  and Wayanad.

 The UFO initiative is aimed at helping films to reach audience before the pirates. On the UFO business model, Mishra said, "the exhibitor need not invest on the cost involved in procuring the system. UFO would install the system free of cost against a nominal refundable security deposit of Rs 2 lakh. The exhibitor have to pay per show screened by him. The maintenance also would be taken care of by the company so that the exhibitor can save considerably on operating costs."

Meanwhile, the distributor gets to screen the film in all the geographies on the same day of the release and pays only a nominal amount per show. The audience, particularly those in the small centres, also stand to gain as they get access to new releases on the very first day and can experience digital quality viewing experience, he said.

Listing the future plans, he said that UFO Moviez would provide features like 3-D through its servers. This, according to him, would enable cinema owners to screen 3-D films to attract more audience and provide a wider entertainment option to the cine goers.