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New Bollywood

New Bollywood

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Sections

  • CHAPTER 1
  • CHAPTER 2
  • CHAPTER 3
  • CHAPTER 4
  • CHAPTER 5
  • CHAPTER 6
  • CHAPTER 7
  • CHAPTER 8 ANOMALIES IN BOLLYWOOD
  • CHAPTER 9
  • CHAPTER 10
  • CHAPTER 11

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INDIAN INSTITUTE OF SPACE SCIENCE AND TECHNOLOGY
Thiruvananthapuram

Economics Project A Study Report on BOLLYWOOD ECONOMICS
Submitted by B.Tech Avionics, Batch-2010

Group Number: Members

April 2012 Department of Humanities

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DECLARATION
This project report titled “BOLLYWOOD ECONOMICS “is a presentation of our original research work. Wherever contributions of others are involved, every effort is made to indicate this clearly, with due respect to the literature, and acknowledgement of collaborative research and discussions.

Date:

Name 1) 2) 3) 4) 5) 6) Rajat Rupesh Kumar Digvijay Pandey Rohit Tyagi Akash Sharma Bhavani Prasad

Signature

3

ACKNOWLEDGEMENT
This project would not have been possible without the support of many people. The authors wish to express their gratitude to their mentor, Dr. C.S. Shaijumon who was abundantly helpful and offered invaluable assistance, support and guidance. The authors would also like to convey thanks to the IIST for providing this opportunity and internet facilities. The authors wish to express their love and gratitude to IIST Mess and Canteen Department for their food & understanding, through the duration of our studies.

and song and dance sequences were inserted in the storyline. Lastly. They were first made without sound and with the advent of new technology. Also commonly labelled as the ‘Bollywood’ films. It was one of the defining moments in the development of the industry. . as it was then that new elements were introduced in the film productions. we will first introduce the ‘Bollywood’ film industry in general. Ever since. we present our brief group discussion on these various aspects of the Bollywood industry. we discuss the social and economic impact of the industry. Hindi language was made the main language used in the films. In this paper. Next. the Hindi film industry has developed into the dominant film industry in India. followed by its main players. films in sound were produced. these films have also created an impact on various aspects in our lives. as well as its influence on other countries. and mention some critiques that have been made against it. we will be presenting the history of the industry.4 ABSTRACT The Indian film industry developed since the early 1910s. and that Hindi films have evolved into a distinct genre of film of its own. Secondly.

5 TABLE OF CONTENTS Chapter Chapter 1 Chapter 2 Chapter 3 Chapter 4 Topic Introduction to bollywood economics Literature review History and background of hindi films Cost and revenue generation system in bollywood Chapter 5 Chapter 6 Distribution methods and models in bollywood Factors affecting the verdict of movie in theatres Chapter 7 Chapter 8 Chapter 9 Chapter 10 Classification of bollywood movies Anomalies in bollywood movies Publicity and marketing of bollywood movies Comparison between multiplexes and single hall theatres Chapter 11 Chapter 12 Chapter 13 APPENDIX BIBLIOGRAPHY LIST OF TABLES LIST OFGRAPHS Banking involved and corporatisation of films Analysis Conclusion and findings Pg. no. .

we mean a Hindi film aimed at a commercial mass-market and produced in Mumbai (formerly known as Bombay). It was a controversial term that even the Hindi film actors found hard to accept. We are the Mumbai (the hub for the Hindi film industry) film industry and no Hollywood. 217-229. 20071). 5. suggests that the Hindustani cinema is imitating Hollywood. The name 'Bollywood' itself. (2006).. 3“Let the Americans be. Hollywood. (2007). F. Keating. Nationalism and post colonialism in Indian science fiction: Bollywood’s Koi…Mil Gaya (2003). G. the terms „Bollywood film‟ and „Hindi film‟ will be used interchangeably. 20072). & Langer. a film-producing region which gained prominence in the domestic film market in the 1950s (Alessio & Langer. It was seen as insulting as it made 1 Alessio.6 CHAPTER 1 INTRODUCTION TO BOLLYWOOD ECONOMICS The ‘Bollywood’ Film Industry When referring to a „Bollywood‟ film. The name Bollywood was started in 1976 by a crime fiction writer H. Hindi film producers also resented the comparison of Bollywood to Hollywood (Chopra. R. A. 1344-1362. . 136. S. 2 3 Chopra. Metro Magazine.” „Bollywood‟ 4is considered as an industry which tries to reproduce the products of its successful counterpart. D. which was derived from the word 'Bombay' and 'Hollywood‟. & Stonehouse. Management Decision. New Cinemas: Journal of Contemporary Film. 4 ‘Bollywood’. (2007). The “learning trap”: a Bollywood frame for strategic learning. 52-54. 44. J. In this essay. King of Bollywood Shah Rukh Khan and The Seductive World of Indian Minocha. To quote from the article by Minocha and Stonehouse (2006).

Also. The Indian Entertainment and Media Industry. Likewise. With the initial aim of setting up Zee TV to counter Western programmes. 2007). From this. Despite the displeasure of those in the film industry however. the entertainment industry is able to go beyond India and into the world‟s entertainment market. the name was used by the media and later used widely. 19996). India. It was even included in the fifth edition of the Oxford English Dictionary (Chopra. with Zee TV. Importance of study of Bollywood Economics When Rupert Murdoch‟s STAR network tried to penetrate into the Indian entertainment industry. Bollywood versus Hollywood: Battle of the Dream Factories. London: British Film Institute Tyrrell. 20055). This would have benefited the local economy. estimated that the Hindi film industry had grown at an incredible 20% in the previous year and predicted similar growth for the next 5 years.7 Bollywood seem like a derivation from Hollywood (Dwyer. people usually regard original products as superior to their imitations. (1999). (2005). but also those industries related to it such as fashion industry. one would not expect the original form to be the same as the imitation ones. In 2006. a PricewaterhouseCoopers report. The industry. estimated at 68 billion rupees ($1. was projected to reach 153 billion rupees ($3. in Tracey . we 5 6 Dwyer. R. If one is buying an original pair of Nike shoes. Bollywood is often considered as subordinate to Hollywood. 100 Bolywood Films.5 billion) in 2005. it had indirectly introduced new jobs opportunities to the Indians. In fact. he prompted the Indians to set up their very own satellite channel called Zee TV (Tyrrell. mainly because the industry is taking place in a developing country. This venture not only provided new jobs for the Indians in the entertainment sector. H. 2007).4 billion) by 2010 (Chopra.

one of the popular Bollywood movies filmed in 2006. In July 2005. 198-215. the film has been so popular with Asian audiences in its opening weeks that it outdid Superman at the box-office. Other countries began to recognize the benefits on having the Bollywood movies filming their movies on their locations. to shoot 60% of the film in Singapore. Influence beyond Its Borders The Hindi Cinema not only has an impact on its own country. it would 7 Kripalani. was filmed in Singapore. Young viewers in Singapore have reported the delight of being at the location where the film was shot. Due to globalization. Malaysia has become a popular destination for filming while Thailand is beginning to promote itself as a shooting destination for Hindi films. Singapore has also become one of the few destinations that were chosen for onlocation filming. and provided logistical support to the shooting of the film. (2006). and retracing the steps of the hero along the bridge and down the boulevard. New Cinemas: Journal of Contemporary Film. Reportedly. Trendsetting and product placement in Bollywood film: Consumerism through consumption. Rakesh Roshan. but it has been influencing the countries that surround it. featuring an Indian caped crusader played by Hrithik Roshan. 4. . Krrish7. mostly in the Asian continent. but the revenue spinning potential from tourism is endless. Asian audiences. it was announced that the Singapore Tourism Board (STB) had signed a deal with Indian film-maker. C. Bollywood films have managed to reach masses from other part of the globe (Tyrrell. Not only is revenue to be earned from the shooting itself. 1999).8 can see how the Bollywood film industry contributes substantially to the Gross Domestic Product (GDP) of India. The board believes that the tie up will lead to accelerated tourism as Hindi cinema has a strong following across India and it is an extremely powerful force in shaping the views and opinions of the population.

As discussed. Saathiya: South Asian cinema otherwise known as ‘Bollywood’. which they have subtitled in Korean. and abuse the villain. 136. DVDs of dubbed Hindi films are sold with the tag line „Bollywood macht glücklich!‟ which means „Bollywood makes you happy!‟. 198-215. laugh. What once was purely the domain of the Diaspora of nonresident Indians is now distributed globally and available for Melbournians to see. Also. The Germans are following suit. K. 4. where Lebanese exhibitors started importing Hindi films in the 1950s. North America and other sites of the global Indian diasporas serve to incorporate Australian viewers within the global Bollywood film audience (Boltin. 20068). Bollywood films are not only enjoyed by the Indian diasporic communities outside India. (2006). 9 Boltin. in a paper called Indian Films and Nigerian Lovers: Media and the Creation of Parallel Modernities. the United Kingdom. New Cinemas: Journal of Contemporary Film. They watch in “Indian Style” that is to “make noise. a group who call themselves The Bollywood Lovers‟ Club gathers to watch Hindi movies. interest in popular Indian cinema and its global culture has literally exploded. and having him in familiar territory (Kripalani. At the same time. In South Korea. . The distribution of popular Bombay cinema in Melbourne and Sydney is 3part of a global trend and growing interest in South Asian cinema in its most popular form.9 seem. 8 Kripalani. Metro Magazine. (2003). The industry has also managed to attract an international fanbase. Bombay. 52-54. Trendsetting and product placement in Bollywood film: Consumerism through consumption. C.” Also. The simultaneous release of selected films in Australia. The first Bollywood film to have a major theatrical release was Kabhi Khushi Kabhi Gham in 2003. 20039). anthropologist Brian Larkin writes about the influence of Bollywood in Northern Nigeria. like having their own caped crusader.

To study the marketing structure of bollywood industry 5. To study different distribution methods and models in bollywood 4. Secondary data would include analysis from various movies and published articles. To study the methods involved in publicity and marketing of bollywood movies 6. To study the cost and revenue generation system of bollywood 3. To compare between the revenue generated by multiplexes and single hall theatres 7. The qualitataive analysis would involve collection of statistical data available from the different multiplexes &distributors and demographics details over a period of time. Methods of data collection will also include data figures & graphs from different chains of multiplexes & advertisement companies on product placement in movies. To study the corporatisation of bollywood films 8. To study and analyse the effect of bollywood on Indian economy 2. To analyse the findings of this study Plan and Methodology of this study The method of research for this paper is a mix of data collection and qualitative analysis. .10 Objective of this study 1.

11 Hypothesis Possible limitations of our study • Limited Sample Size • Responses could subjective. hence it would be difficult to quantify • Non response error • Interpretation error .

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CHAPTER 2 LITERATURE REVIEW
The Western scholars assume that it is the economic factor that caused Bollywood to rise and maintain its status as an important source of entertainment to the Indians. Since the Indian economic condition is not as well as the West, Indians could not afford to buy foreign films for entertainment and hence, created their very own film industry. How true can this be? Is Bollywood simply an imitation of Hollywood? Studies have shown that Bollywood has its own ways in film making. For instance, song and dance sequences have been introduced into its films because a lack of them would mean the lack of entertainment value for the viewers. There are also debates as to where Bollywood should be placed; First World Cinema or Third World Cinema. The former is characterized as being funded by big capital and commercialized non-political films whereas the latter is linked to being nationalist, popular cinema with uncritical audiences. However, Bollywood films seem to belong in both Cinemas. Firstly, there is no doubt that Bollywood films need a lot of capital to be produced as can be seen from the quality of the screening (microphones, cameras, lightning etc.), the place of film shooting (Paris, New York etc10.) and the heavily commercialization of them (the movies are exported out to various countries). Fans of Bollywood superstars come from all over the world and this proves how well the Bollywood industry has been marketed. At the same time, Bollywood can also be seen as nationalistic. There are a lot of films, where the Indian-ness is emphasized and other social practices such as the caste systems are challenged in a variety of manner (in terms of a comedy or
10

Srinivas, L. (2002). The active audience: spectatorship, social relations and the experience of cinema in India. Media, Culture and Society, 24I, 155-173.

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a serious manner). Therefore, it is a rather difficult task to categorize Bollywood films under only either of the categories. Bollywood films have also often been considered as lacking in merit and hence, many film scholars refused to study it. They were not regarded as a useful platform in understanding Indian society until recently. „It was of then characterized as being meretricious, escapist, mindless drivel and totally irrelevant to the understanding of Indian society and culture.‟ (Dissanayake, 2003). 11

Dissanayake also revealed the factors which influence today's Bollywood narratives. Firstly, they are heavily influenced by the ancient epics of Hindu religious belief and are male-oriented. Even the female roles in the epics are played by males in theatre. Another factor is the classical cinema of Hollywood itself (1930s to 1950s) from which some filming ideas have been adapted from. However, a point is that Bollywood is the product of a localized Hollywood. The idea is similar to glocalization whereby a global product is localized to meet the wants and tastes of respective consumers. For instance, Parsi plays contribute to the dancing elements in Bollywood with MTVs supplying new upbeat dance-movements for Bollywood.

The Indian film industry developed since the early 1910s. Its beginning is marked by the silent film Raja Harishchandra(1913), by Dhundiraj Govind Phalke, who later went on to produce a string of other silent films. The industry gradually developed and many production companies were set up over time by the late 1920s. Movies were silent then, and since the languages spoken and literacy of the audiences varied, the movies usually had subtitles to explain the actions and sometimes the number of subtitles could be as many as in four
11

Dissanayake, W. (2003). Rethinking Indian popular cinema: towards newer frames of understanding. In A. Guneratne & W. Dissanayake (Ed.), Rethinking Third Cinema (pp. 202-223). New York: Routledge.

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languages! (Bose, 200612). This was significant as it helped to garner a wider range of audiences. In March 1931, the first Indian sound film was produced. The introduction of sound films allowed Indian producers to make more Indian films and the importation of foreign films greatly decreased. As written by Bose, „the trepidation over the coming of sound had given way to unbounded optimism‟ (Bose, 2006, p. 75). The introduction of song and dance segments in films (partially derived from a tradition of folk-music drama), „played an important role in winning for the sound film an instant and widening acceptance‟ (Bose, 2006, p. 75). The element of music is significant, as it paved the way for the „very distinctive development of Bollywood, taking it away from Hollywood and marking the very different world in Hindi cinema.‟ ((Bose, 2006, p. 75). However, this new development also posed a new dilemma. India comprises of many spoken languages, and a decision had to be made to choose a common language for the films. After the British left India, Hindi became the national language, as it was used relatively more than any other language and was generally understood in most of India, except for in the south. (Bose, 2006), hence it became the common language used in films. One solution for the problem of language barriers was that successful films in one language would be acted out again in another language. Alternatively, a more cost-saving way was to shoot a few versions concurrently, by employing multi- or bilingual actors to act the same scenes in different languages. Also, the divide in the use of languages led to different language areas to develop a production of its own. A prominent example is the Tamil films, typically produced in Madras. The industry was quick to develop, but was never a threat of replacing Bombay as the movie capital of India, as the latter was the centre of Hindi films, which provided the more lucrative market. (Bose, 2006)

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Bose, M. (2006). Bollywood: A History. Gloucestershire: Tempus Publishing Limited.

at the European film festivals. . In the 1950s. New York: Berg. 13 Van Der Heide. 155-173. social film narratives usually reflected the issues. the rate of films produced in Hollywood then was only half of that (Srinivas. social relations and the experience of cinema in India. Although the industry began near the beginning of the century. 200613). Since then. W. films that portrayed the trend of speaking for the underdogs emerged. 24I. 200214). in which the untouchable girl was unable to marry a man from the upper tier of the caste. “Pather Panchali” became the first Hindi film to receive an award. The active audience: spectatorship. produced in 1951 and Boot Polish produced in 1954. Culture and Society. The Hindi film industry then developed with the increasing importance of stars. the films were focused more on the love stories. norms and behaviors of the society. Hindi cinema began with mythological films by Dadasaheb Palke followed by the social films in the 1930s. Some examples are Raj Kapoor‟s film Awaara. so have the film genres evolved. The film hit revolved around the topic of the caste system. government legalization on the status of the industry was only confirmed in around 1998 to 1999. (2006). which was held in Bombay. producing about eight hundred to a thousand films annually. An example is Himanshu Rai‟s production of Achut Kanya in 1936. Just as how the industry grew over time. This gave the Hindi filmmakers an exposure to Italian neorealism which was used by directors like Bimal Roy (Heide. Actors‟ charm served as an attraction to gain more audience while actresses‟ also began to dress more provocatively to gain attention.15 The „Golden Age‟ of the India cinema occurred during the 1950s. It was found that India has been the biggest film producer in the world. Bollywood Babylon: Interviews with Shyam Benegal. 14 Srinivas. In 1955. While mythological films featured narratives of Hindu gods and goddesses. In comparison. (2002). L. The first International Film Festival of India was organized by the government in 1952. Media.

playback media and the informal economy. They may even allow small businessmen 15 Kripalani. was nominated for an Academy Award for the Best Foreign Language Film. (2006). C. The global dynamics of Indian media piracy: export markets. The claim meant that the films were produced by using money gained from criminal and illegal activities such as tax avoidances in India. was meted out to deserving criminals. 2006. Finally. Culture and Society. 30(5). (2006). 268) Such films usually reflect the pent up anger of that generation. 4. 16 Bose. However. New Cinemas: Journal of Contemporary Film. Underground figures usually made the decisions in the production of a film. 34516). A. p. 198-215. Gloucestershire: Tempus Publishing Limited. It gave a different dimension to Bollywood internationally. an actor in Lagaan. (2008). Media. in the late 1980s and 1990s. with very little time for song and dance. in the 1990s. yet unknown to many. M. „Bachchan was the brooding loner. and no hesitation in taking the law into his own hands to ensure justice. a film written and directed by Ashutosh Gowarikar. 699-717. p. . Bollywood: A History. films depicting young romance emerged with the productions such as Yash Chopra‟s Chandni in 1989 and Karan Johar‟s Kuch Kuch Hota Hai in 1998 (Kripalani. The development of Hindi films also reached a new height.16 There was a discernable shift of the genre in the late 1960s and early 1970s whereby audiences were presented with the „angry young man‟ films of Amitabh Bachchan that carried value-ridden plots against the corrupt and the rich. Trendsetting and product placement in Bollywood film: Consumerism through consumption. in view of the negative societal conditions. 200615). which the system had failed to provide.‟ (Bose. 17 Athique. 2006. The film had set the benchmark of success for future films of the new era to follow suit. 200817). the film „was Bollywood‟s Crouching Tiger.‟(Bose. As said by Noel Rands. The development of the Hindi film industry seems to be relatively progressive. when Lagaan (2001). Hidden Dragon. most Hindi films were believed to be funded by “dubious money” (Athique.

jewelry and associated trades. At the same time. How is our study unique? The study gives a complete overview of bollywood economics along with alternative methods and case studies. criminals and underworld dons attempting their hand in the film industry. 30(5).17 to become their own film producers whereby famous actors and actresses act in the films. (2008). Culture and Society. these distributors have to turn to illegal sources so as to raise money. The global dynamics of Indian media piracy: export markets. the distributor fails to earn enough capital to cover the production costs. A. . actresses. As a result. but unaccounted money can be put to use in an industry where stars and others usually get paid in cash and receipts are only issued for a fraction of the total amount involved… it is not surprising then to find pirates.” Living in fear of being threatened or even killed by these underground figures. Illegal sources are private investors mostly from the construction. unreliable feedback from the box office and also competition among the different players from the industry. With the taxes. 699-717. 18 Athique. Media. To quote from the article by Athique (2008). thieves. directors and producers have to obey every single word of these “investors”. Explains anomalies in terms of economic factors. Highlights changing trends in bollywood business with the helpof statistics. theatre owners will charge the distributor a very unreasonably high rent for the usage of the facility to screen the films. playback media and the informal economy. A very common situation in the Hindi film industry is that a distributor invests in a film and puts his own ideas to the film through the producer. 18“not only are there such high returns in lending money to film producers. actors.

The active audience: spectatorship. Saathiya: South Asian cinema otherwise known as ‘Bollywood’. is a Hindi word which is used to mean a „spicy‟ mix of at least eight song-and-dance numbers and on a cinematic level. Usually. This term. such as the father or son. filming takes place in Mumbai. They would usually have to know how to dance. 136. The song and dance segments require a major portion of the film‟s budget as the setting for these segments are usually very “well-equipped and lavished” (Srinivas. a seemingly inexorable combination of genres.18 CHAPTER 3 HISTORY AND BACKGROUND OF HINDI FILMS Characteristics of a Typical Hindi Film Hindi films fit into a loose category of song-and-dance. (2002). The location of a Hindi film production may differ from one film to another. it is common to have an intermission in between the screening of the film for the audience to have a break of ten to fifteen minutes. social relations and the experience of cinema in India. 155-173. 24I. 2002). Bollywood film takes up about three to three and a half hours. with occasional shootings in foreign countries. This has become a 19 Boltin. One characteristic of a Bollywood film is that most films are just like musicals. K. 5254. (2003). However. 200319). Culture and Society. originally coined by theorist Rosie Thomas. The actors often take up familial roles. Media. L. 20 A setting can take on days to be created and built just for a few minutes of song and dance. depending on the demands from the script. availability and preferences of the producers or directors. masal movies. . Metro Magazine. There is a minimum of six to eight songs in a Bollywood film. 20 Srinivas. Hence. fight and even do comical scenes in the film. narratives and points of view (Boltin. typically.

155-173. Hindi films dominated the market amongst the other Indian language movies. (2007). Technology enabled the Hindi film industry to grow. New York: Warner Books . In 1930s. The active audience: spectatorship. It is very unlikely to offer new stories to attract worldwide audiences. the many dance scenes and enormous wardrobe comes to mind. Hollywood Bollywood and East is East 21 Srinivas. Hindi films lack of innovative ideas. politics and history when writing the script. When one mentions Bollywood. 24I. It is the famous trademark of Hindi films. 2007). society. Between the 1930s and the 1940s. Bollywood’s Main Players Script writers and directors helped to increase the popularity of the Bollywood cinema through their works. King of Bollywood Shah Rukh Khan and The Seductive World of Indian Cinema. (2002).19 practice and the Hindi audience group has been so used to it that if the break gets over the fifteen minutes maximum interval. social relations and the experience of cinema in India. With sound. However. 200221). films would have as many as forty songs. Only in recent years Bollywood managed to gain more popularity through the influence of Anglo Hindi films such as Bend It Like Beckham. These film features of music and dance were and are still the central feature of the films. A. the signature of a Hindi film allowed audiences to enjoy the music of the songs to which the actors danced to (Chopra. Media. It is common to hear a bell ringing in some theatres as an indication of the continuation of the film and there may even be ushers outside the theatres to usher the viewers back into the theatre (Srinivas. Pride and Prejudice. in 1950s. Culture and Society. 200722). 22 Chopra. they start to get restless and may even leave their seats or start chatting loudly with their companions. L. Script writers usually focused on the Indian culture. the number of songs per film dropped to less than 10 per film (Chopra.

Shyam Benegal is another director who has been honored in India on many instances. the Film Finance Corporation (FFC) was formed. 1344-1362. Without them. determined. In the 1960. G. W. but became. 200623). S. It shows the importance of every Indian to fight for the country and how war can creates unconditional and true friendships among the Indian fighters (Chakravarty. (1998). Anand. just like the script-writers have the freedom to steer the direction of the films to the ways they want them to be. 2006). 25 Van Der Heide. yet humane and compassionate.. For example. the movies are not produced for the audiences.20 (Minocha & Stonehouse. 44. S. His films are described by the Prime Minister of India. The script-writers also have the discretion as to what to be included in the films. 200625). Directors. Benegal‟s work shows woman to be intelligent. Management Decision. & Stonehouse. 23 Minocha. The “learning trap”: a Bollywood frame for strategic learning. It is unlike the traditional films where woman were casted as subservient and docile females (Heide. C. (2006). C. The FFC was initially responsible for “assisting and promoting the mainstream film industry. Dr Manmohan Singh as being “distinguished. (2006). through the direction of Indira Gandhi herself. a funding organization for „modest but off-beat films of talented and promising people in the field” (Heide. . who has overtly declared himself as a leftist has managed to create films which glorify war. Another important main player in Bollywood are the producers. powerful. 199824). innovative and socially conscious. For example. The films produced by FFC were mostly in regional language instead of being solely in Hindi. New York: Berg. National identity in Indian Popular Cinema 1947-1987. S.N. Annadurai who is a politician cum script-writer has succeeded in steering the films into certain political direction by incorporating some political agendas into the films (Dissanayake. 24 Chakravarty. Bollywood Babylon: Interviews with Shyam Benegal. 2003). New Delhi: Oxford University Press.

Films from Rajshri Productions usually focused on romance storyline whereby a poor boy meets a rich girl or vice versa.27 Following the producers are the distributors. 200626). (2008). Songs and dances are also inculcated into the films but they act as a means of showing a social message. Management Decision. Films from BR Films usually focused on families. They determine the number of prints to be bought and the extent of the distribution of 26 Minocha. 27 Athique. to the other parts of the world. The “learning trap”: a Bollywood frame for strategic learning. Yash Raj started its own offices in London and New York in 1997 and 1998 respectively. 699-717. being aware of the piracy market. & Stonehouse. Media.21 Different production companies produced films of different genre. Culture and Society. 30(5). unions and festivals and then the boy and the girl falls in love and subsequently. Everyone in BR Films are usually involved when it comes to making decisions on the shooting of the film (Minocha & Stonehouse.. . A. Yash Raj even instigated raids and legal proceedings against the piracy sector and the activities were publicized in their website as a mean a „naming and shaming‟ outlets that have been prosecuted for keeping pirated copies of Yash Raj films. 2008). Producers are usually the ones making all the decisions in regards to how the film should be shot. S. playback media and the informal economy. This serves as a warning that the Indian producers are actively involved in attempts to bring illegal trades of the Hindi films to prosecution (Athique. Besides. 44. G. the relationship will be found out by the families. Yash Raj Films started its own distribution in the 1990s. The typical story is usually whereby the father of the family is the hero and key figure of the film. They have a lot of song and dance that involves the whole family of the boy or girl in occasions such as marriage. Film distributors distribute the Hindi films throughout India and at times. In the recognition of the prospective chances in the overseas markets. 1344-1362. The ending of these films is usually a happy ending for all. (2006). The global dynamics of Indian media piracy: export markets. Films produced by Yash Raj gained success in these countries.

200729). King of Bollywood Shah Rukh Khan and The Seductive World of Indian Cinema. For the Indian audience. (2007). social relations and the experience of cinema in India. would watch an earlier show with their friends or female companions but when with their families. 155-173. Audiences serve as the consumers of Bollywood industry. The female group of the Indian audience. 30 Srinivas. Moneybags was the leading financier and distributor of Hindi films. . 2002). 200628). At times. Media. & Stonehouse. 1344-1362 29 Chopra. in particular. To the Indian audience group. there is nothing else other than the conservations between the actors and actresses (Srinivas. Besides. Audiences to the Hindi films differ from class. New York: Warner Books. (2002). It is common for the audience to comment loudly on the films during its screening. the viewing of a Hindi film for the Indian audience is like a gathering event for the family. In general. financing a hit film called Devdas (Chopra. G. A. L. 44. (2006). 24I. during the release of the film or even after the release of the film (Minocha & Stonehouse. Management Decision.30 28 Minocha. They watch the film in big groups of around eight to ten people of all ages. going to a movie alone in the Indian culture is like an anti-social or unnatural act and it is common for a person to view a film several times as the person watches the film with a different companion group each time (Srinivas. religious background and age. S. Hindi films are similar to variety shows. Hollywood movies are too short and boring as usually.22 a film based on the film‟s estimated popularity and revenue payback.. The “learning trap”: a Bollywood frame for strategic learning. He is a diamond merchant whom finances Hindi film. the distributors will sell the distribution rights to overseas distributors before the release of the film. Songs and dances in the Hindi films also add spice to the film. from different generations. they will go for the evening show. The active audience: spectatorship. Bharat Shah also known as Mr. Culture and Society. which is not typical in movie screenings in other parts of the world. 2002).

Dissanayake (Ed. W. However. 155-173. No intermarriages were included in the plot as the director was worried that the film may not get past the Board of Censor 31 Srinivas. the Indian audience may do selective viewing. In A. The audiences may watch the same movie but the meanings they give to the movie may differ. In making a film. For example. Guneratne & W. a movie which challenges the caste system will make these audiences to evaluate and think about the injustice done to some of the lower caste in their societies.). New York: Routledge. social relations and the experience of cinema in India. For example. . (2002). It is also a common practice for the Indian audience to leave the theatre before the film has fully ended. certain social rules must be observed. if the viewer finds the song and dance sequences of the film boring. 24I. other audiences will end up emphasizing the need to preserve the caste system which is an important aspect of the Hindu religion. For example. 200332). in order to avoid chaos and fighting as shown in the movie (Dissanayake. they may leave the theatre and only come back when the scene has moved on. The active audience: spectatorship. 202-223). (2003). They are not passive audiences but usually relate themselves to the actors and actresses in the films they are watching. Akhbar – a Muslim family and Anthony – a Christian family). Culture and Society. another important player of the Bollywood industry is the Board of Censor. the women they loved come from the same religious background as themselves. L. Thus it is very common to see a sudden freeze shot of the last scene of the film to indicate the end of the film. in Amar Akhbar Anthony where the three siblings are separated and brought up by different family (Amar – a Hindu family. Lastly. Media.23 Furthermore. Rethinking Indian popular cinema: towards newer frames of understanding. like the untouchables. 32 Dissanayake. without the rolling of the film credits (Srinivas. 200231). Rethinking Third Cinema (pp.

Secondly. S. National identity in Indian Popular Cinema 1947-1987. Firstly. While Hindi films are a genre on its own.24 since the latter might consider the content as carrying some 'disturbing' elements and cause unhappiness among the audiences (Chakravarty. In March 1931. is not a degrading way of labeling the Hindi film. by Dhundiraj Govind Phalke. in our view. verbal communication allows better understanding and also gives better exchange of information from the 33 Chakravarty. In our opinion. (1998). Bollywood: Yesterday.it sounds catchy. the production of the first Hindi sound film may arise due to the fact that insertion of subtitles might be seen as a hassle eventually over time. . sound communication also aids in better understanding of the film. although disliked by mainplayers of the industry itself. Non-verbal communication may be important. Today and Tomorrow In this section. 199833). popular and it might be able to tweak the curiosity of impressionable masses to watch the films. as it not only reduces the production time. we would be having a general discussion on the various points mentioned earlier. There are certain elements in Bollywood films which cannot be found in Hollywood today such as the song-and-dance sequences (unless it‟s a musical). or even the „feel‟ of the films differ from Hollywood films. props used in. the Hindi film industry has long started back in the 1910s. however. the first Indian sound film was produced. The production of the first silent film Raja Harishchandra(1913). perhaps this term „Bollywood‟ can be seen as a strategic branding label of the industry. S. Perhaps. the emergence of a common language in India (Hindi) may also influence the decision of the production firms in changing the route of the Hindi films from being silent to sound. seems to open the doors to many possible future chances in the Hindi film industry. The storyline. New Delhi: Oxford University Press. the term „Bollywood‟.

songs and dances are very often found in Hindi films. This allowed Bollywood films to be a distinctive genre of its own. The types of narrative in the films have also expanded from nationalistic and mythological ones to that of love and romance. it also helps to bring in more revenue for both the Hindi film industry itself and also to the countries of the viewers. this may be the very fact that limits foreign viewership. Bollywood films have increasingly been garnering international interest as they serve as a source of snapshots of the culture and life in India. but at the same time. therefore contributing to the increase of the films‟ appeal. narratives which are somewhat close to real life situations. might find that Bollywood films have narratives which are unnecessarily draggy and too melodramatic.25 actors to the audiences. especially so when film protagonists break out into songs every now and then. with the advent of better technology to improve film productions. one who is used to the fast-paced plots. together with the rise of globalization and tourism industry. it was only much later that Hindi films have received international recognition. The widespread viewership of Bollywood films meant that the Hindi film industry could earn revenue from the box offices of foreign countries. Successful films will then be able to earn enough revenue to reproduce the same film but of a different language spoken by the actors and actresses. Although its development started early in the 1900s. For instance. Such a generic type of narrative is one that the international viewers could relate to better. It was only in the 1950s that it first received an award in the European film festival. in a more spectacular manner. hence often disrupting the flow of the story. success of the Hindi film industry outside India can be considered as relatively slow. Also. Thus. this allows for more investments in film productions. Perhaps now. such as shooting scenes at locations . The increasing acceptance by foreign viewers not only helps to raise the popularity of Bollywood films. In an attempt to differ from the Hollywood movies.

Nevertheless. may very well decide to make India their tourist destination. This may then lead to a boost in the tourism sector. particularly the older generations. For instance. women have more access to job opportunities which were once only available to men. whereby people are no longer simply contented with what they have. With higher education. as it signifies the decline of the society‟s own set of values and norms. as viewers may start to visit countries that were part of the shooting settings of the films and this will help to increase revenues earned from tourism. submissive and traditional. having taken a peek into what India is like through the films. The international audience. The Hindi fashion of clothing has also become common amongst the Malays. instead of their own traditional . they are increasingly portrayed as the daring. which is disapproved by some. for instance. who wear them during weddings or on Hari Raya. Lastly. hence making themselves self-sufficient. Indian women are lesser depicted as demure. although these more modern Hindi films are accepted by many. Bollywood films are so well liked that local Malay film producers sometimes incorporate features of Bollywood films in serials such as „Cinta Bollywood‟. the character‟s increasingly provocative outfits and the increasing freedom in inter-gender interactions. The films also seem to have an influence in women‟s roles in the society. which stars the popular actor Aaron Aziz. Likewise. Many features in such Hindi films are claimed to be influenced by the Western culture. Bollywood films seem to promote the culture of materialism. Instead. Among us are some who watch Bollywood films. independent and self-empowered individuals. These influences seem to point towards the Westernization of Bollywood films. but wish to pursue material wants. Most of us agreed that the influence of Hindi films has had an impact on the locals here. which was uncommon in the past. viewers from India might also be enticed to visit locations of film shots abroad. particularly the Malay community.26 outside India. a minority of the audiences are against them. This is indicated by.

the fandom here has not escalated to idol worshipping as has happened in India. News from the industry is also often featured in the local Malay newspaper.27 costume. Perhaps the best investments viewers would make are just purchasing DVDs or subscribing to the cable channel such as Zee TV. to view the films and receive regular inside scoops of the industry. Nevertheless. it may be due to the stressful life in Singapore where rationality and practicality overtake non-rational attitudes such as idol worshipping. most of them would most probably return to their daily routine and forget about Shah Rukh Khan the next day. TOP GROSSING MOVIES . Although many people turn up at Shah Rukh Khan's show in Singapore recently. Firstly.

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CHAPTER 4
COST AND REVENUE GENERATION SYSTEM IN BOLLY WOOD Cost :
Budget: The Budget of a movie is referred to as the amount of money spent on making the movie, that is the production costs, the actors/performers/music directors and many more personnel involved the whole movie making process. The burden of the Budget cost is taken by the ―Producer‖. Now the Producer can either invest his own money, take money from an financier on loan or Partnership. Also a new trend with the incoming of Corporate is that they might provide the financing of a movie on the behalf of the Producer with profit sharing. Selling Cost: When the movie is ready then either the Producer can release the movie through the distributors or he can sell the whole Product on a lump sum to an Interested Party. The Former case is very rarely done nowadays. So, in most cases the Producer can sell the movie on a Premium to an Studio/Corporate. Thus, the Producer can make an healthy profit even before the movie releases and now the main pressure to recover the investment is on the Party who bought the movie.

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The Price which an Studio/Corporate pays to get the movie is called the ―Buying Cost‖ or the ―Acquisition Cost‖. Print and Publicity(P&P): On top of the Buying cost, the Corporate/Buyer now also has to invent an significant amount in the Print and Publicity costs of the Movie, to promote it on a wide scale and also to have an extensive release for the movie. The whole cost/Total cost of the movie is thus, Selling cost+(Print/Publicity). The above Total Cost is to be recouped by the concerned party by various channels of revenue.

Revenue :
The Revenue Channels for Hindi movies are generally considered as follows: Indian Theatrical Share: 50% Overseas Theatrical Share: 20% Satellite : 20 % DVD/Music : 10% Indian Theatrical (Hindi): The first and the major contributor for the revenue generation is the Indian Theatrical collections. There are few terms in relation to Indian Theatrical run of Hindi movies: Gross Collections : Gross is the total amount generated by a movie at ticket counters. As simple as that.

30

Entertainment Tax : Most states levy an entertainment tax on movies least in India. On an average, across India is assumed to be 40%. The following is the general breakdown across the nation :

Nett Collections : After the entertainment tax is deducted from the Gross Collections, what is left is the net. This is the money which is now with the Theatre owners. Distributer Share: The Theatre owner now cuts his share/rent (also called Exhibitors Share) from the Nett and thus resulting the the real share which will actually go the Distributer. This is called the distributors share or share in trade parlance. This is really the money from which the movies budget/cost is recovered. In General Share is around 50-55% of the Nett collections (if the movie has done a good mix of business at Plexes and Single screens)

5 crore during the entire first run of the .31 But a approximation can be made as follows : Lets look into the above in some detail. Exhibition: Multiplexes: With the rise of Urban/City Multiplexes bulk of the business comes from these Multiplexes only. Producers/Distributors will get 50% of the nett collections from the multiplexes in the first week. 37. Fame. 42. 17. Big. 5th June 2009. An additional 2. Inox.5% will be paid to producers/distributors in the first and second weeks if the nett collections across the multiplex properties owned and operated by the six national chains (PVR. Cinemax and Fun) cross Rs.5% in week 2. The revenue sharing model adopted by the 6 major Multiplex chains of India(Exhibitors) and the Producers Association is as follows based on the agreement reached on Friday.5% in the third week and 30% in and after week 4.

The reason Multiplexes want to keep more shares going into later weeks is because(and also in general). Conversely.5% for weeks 2 and 3 will be given to the chains by the producers/distributors concerned. 2) The cost of maintaining the Properties is a lot and they think they deserve the premium for the quality they provide to the audience.32 film. if any film released with more than 500 prints collects a total of less than Rs. 1) The number of audience decreases as weeks go by but the cost of running the show remains same. a rebate of 2. For example if a movie does the Industry Standard business week after week we can get the below kind of Shares from the Multiplex system(using the above table): . 10 crore across the multiplex properties owned and operated by the six national chains.

There are many Independent Multiplex spread all across the Nation who contribute the rest 30% of the revenue. The share system for single screens is little different from plexes. Single Screens: Though the revenue from single/double screens has been on a decline for several years now and the trend is supposed to continue. Now the share from these Independent Plexes depends from movie to movie and each time a producer has a deal with them but usually it hovers around the ~50% mark only.33 Now the above is just an example. of course the share might go up or lower depending how the movie does in the first 2 weeks(as those 2 weeks have the highest shares coming) and also how much the movie makes in the later weeks. Independent Multiplexes : Now the Top 6 Plex chains of India give about 70% of the revenue of Total Plex business. The Screens are actually given on rent to the producer to play their movie at a . as of now they do provide some substantial amount as long as the movie has elements to work in the Single Screens.

now by the end of the first week: 1) Suppose movie has done 100% full week the nett revenue will be 7*100.000(0.1 = 33%.000*7 = 1. 2) Suppose movie has done 70% full week the nett revenue will be 7*100.000.000 = 7.40. 4) Suppose movie has done 30% full week the nett revenue will be 7*100.000.000 per day.3) = 2.000 and the rent will be 20.000*7 = 1.000 and the rent will be 20. The share % going the producer will be (4.4)/2.000. The share % going the producer will be (7-1.9-1.34 fixed rate and the rest of the revenue (after subtracting the rent) goes directly to the producer.00.000. 3) Suppose movie has done 50% full week the nett revenue will be 7*100.40.10.000 and the rent will be 20.5 = 60%.4)/3.40.000 and the rent will be 20. Lets assume a given Single Screens charges 20.000*7 = 1.9 ~ 71%.5) = 3.1-1.90.7) = 4.4)/4.5-1. The maximum revenue the movie can do with full capacity is say 100.000 rupees per day as its rent for running full shows of a movie.000(.40. Usually Big movies are booked for 2 to 3 weeks at single screens and depending on the movies performance the booking is increased or decreased.000*7 = 1.000(0. .4)/7 = 80%. The share % going the producer will be (3. The share % going the producer will be (2.50. Lets take a few examples here.

6 National Multiplex chains ~ 45-46% share. The rest 45-50% of the nett is kept by the Multiplexes. it can go as high as 80% and go as low as 35% depending on how it has done there. But in general movies which do well in Single Screens get around 6065% share from the total net revenue. TOP GROSSING MOVIES OF LAST TWO DECADES: .35 Now there might be different rent charges for different single screens. If we take an average of the shares from the 3 Major Theatrical Revenue sources which are. But we get an idea that a movie gets its share from single screens depending on how it has done there. granted the movie has done uniformly well in plexes and single screens and also took a decent opening and then trended by industry standard (ie what most big hits do). Single Screens ~ 60-65% We will get around 50-55% share average. the screens of Bihar are the cheapest and the ones in the Delhi region are the costliest. The Independent Multiplexes across India ~ 50% share.

00.18 60.00.000 35.50.000 10.72.50.000 27.95 67.000 25.78 182.25.00.000 16.000 267.Film Dil Ghayal Saajan Beta Aankhen Khalnayak Darr Hum Aapke Hain Kaun Mohra Dilwale Dulhania Le Jayenge Karan Arjun Coolie No1 Raja Hindustani Jeet Ghatak Agni Sakshi Saajan Chale Sasural Border Dil To Pagal Hai Ishq Pardes Ziddi Hero No1 Judwaa Kuch Kuch Hota Hai Bade Miyan Chote Miyan Pyaar To Hona Hi Tha Pyaar Kiya To Darna Kya Soldier Year 1990 1990 1991 1992 1993 1993 1993 1994 1994 Nett Gross 10.00.00.00.000 12.00.50.00.00.00.33 73.00.00.000 14.00.50.00.25.000 22.50.00.00.00.00.00.000 10.00.00.000 45.11 117.50 66.00.64 .00.50.78 74.50.000 17.00.00.00.000 14.00.000 16.000 26.50.00.000 14.000 19.000 21.00.00.50.000 30.50.00.75.50.44.25.00.00.00.000 29.00.50.33 73.00.00.25.000 106.00.00.00.000 16.000 Adjusted Gross 22.00.00.00.00.56 71.000 52.75.00.00.000 18.50 68.00.44 64.00.77 120.000 12.79.00.00.000 16.00.000 25.00.00.000 VERDICT36 Super Hit Super Hit Super Hit Blockbuster All Time Blockbuster Super Hit Super Hit All Time Blockbuster Super Hit All Time Blockbuster Blockbuster Super Hit All Time Blockbuster Hit Hit Hit Super Hit Blockbuster Super Hit Semi Hit Hit Hit Hit Hit All Time Blockbuster Semi Hit Hit Hit Hit 1995 1995 1995 1996 1996 1996 1996 1996 1997 1997 1997 1997 1997 1997 1997 1998 1998 1998 1998 1998 61.00.50.000 20.00.000 26.00.00.00.25.00.00.000 15.000 309.00.000 48.00.000 16.000 20.000 17.00.000 85.00.00.000 28.000 17.25.00.25.00.00.000 30.000 Gross 18.33 71.50.00.54 83.25.75.00.00.000 30.25.46.000 29.000 28.000 123.00.000 69.25 71.00.00.40.41.25.000 18.000 17.50.00.03 207.000 48.00.00.00.00.00.000 28.00.000 29.77.00.000 21.00.000 23.69 71.000 13.000 21.00 62.00.00.75.00.000 25.50.00.000 61.00.50.00.000 15.00.000 76.000 30.000 9.000 21.00.25.000 28.33 149.00.00.000 35.26 21.000 26.

000 130.00.00.000 32.50.000 40.25.50.00.000 76.78.69.000 35.08.00.00.00.47.000 75.000 69.00.00.00.000 29.00.000 47.95.50.00.000 24.000 103.00.000 82.00.00.25.000 22.00.000 54.00.00.000 146.000 100.00.37 Saudagar Hum Saath Saath Hain Biwi No1 Hum Dile De Chuke Sanam Taal Hum Kaho Naa Pyaar Hai Mohabbatein Mission Kashmir Josh Refugee Gadar Ek Prem Katha Kabhi Khushi Kabhie Gham Lagaan Indian Devdas Raaz Kaante Koi Mil Gaya Kal Ho Na Ho The Hero Veer Zaara Main Hoon Na Mujhse Shaadi Karogi Dhoom No Entry Bunti Aur Babli Dhoom 2 1998 1999 1999 1999 1999 1999 2000 2000 2000 2000 2000 2001 8.00.00.000 39.000 112.000 31.50.00.000 18.00.05.25.05.10.09.00.00.000 72.41.52.00.000 138.00.000 Hit Hit Hit Semi Hit Above Average Hit Blockbuster Super Hit Semi Hit Above Average Average All Time Blockbuster 2001 2001 2001 2002 2002 2002 2003 2003 2003 2004 2004 2004 2004 2005 2005 2006 47.00.00.000 37.00.00.000 53.63 75.75.25.00.00.70.00.20.000 50.25.00.55.00.00.000 43.00.000 74.25.000 35.000 74.61.00.000 58.000 32.000 19.00.00.76.000 67.00.25.00.000 61.000 29.95.00.00.00.00.000 93.50.00.00.000 61.46.00.00.000 80.000 172.000 84.00.00.00.75.00.75.000 22.00.000 33.62.000 79.00.00.000 77.00.000 37.25.000 18.00.00.000 122.000 32.50.00.00.000 78.000 15.50.000 28.00.68 92.50.00.76.00.00.00.00.000 36.000 40.00.000 16.000 107.00.000 42.82.00.00.09.000 20.00.00.75.75.00.75.000 28.00.00.75.40.00.00.00.26 65.000 21.00.00.75.00.00.25.000 9.00.00.000 33.000 97.50.000 38.000 33.00.00.000 17.000 Blockbuster Hit Semi Hit Hit Super Hit Above Average Blockbuster Hit Average Super Hit Hit Hit Hit Super Hit Hit Blockbuster .00.00.000 42.50.000 46.000 29.00.00.00.000 20.000 68.42 19.00.00.000 286.000 50.00.000 48.000 43.00.00.25.50.000 111.00.50.00.75.00.00.00.000 74.00.000 130.00.00.000 24.

000 100.00.000 77.00.50.50.00.000 44.19.75.00.78.000 47.00.00.00.000 117.00.26.00.00.70.00.000 51.00.000 66.00.00.75.00.000 59.000 97.000 83.00.00.00.50.00.000 133.00.21.00.50.00.000 76.000 52.00.00. Ya Jaane Na Golmaal Returns Dostana Three Idiots Love Aaj Kal Ajab Prem Ki Ghazab Kahani Wanted 2006 2006 2006 2006 2006 2006 2006 2006 2007 2007 2007 2007 2007 2007 2007 2007 2008 2008 2008 2008 2008 2008 2008 2008 2009 2009 2009 2009 69.00.00.000 269.89.25.000 118.78.00.00.75.000 Blockbuster Blockbuster Super Hit Hit Hit Hit Super Hit Hit Blockbuster Blockbuster Blockbuster Blockbuster Super Hit Hit Hit Hit All Time Blockbuster Blockbuster Super Hit Hit Semi Hit Super Hit Hit Average All Time Blockbuster Super Hit Super Hit Super Hit .86.000 89.00.000 76..41.000 43.000 90.000 68.00.37.000 40.00.00.000 84.00.00.50.000 79.000 91.42.00.42.09.22.00.00.00.00.000 94.000 103.000 98.74.000 55.75.00.00.000 66.00.000 60.000 66.00.000 105.92.00.75.00.00.00.000 85.00.01.000 83.000 170.000 127.00.00.000 75.14.00.00.75.75.00.000 155.000 72.14.000 62.000 269.25.50.000 72.000 67.80.000 45.000 63.00.00.00.00.38 Krissh Lage Raho Munnabhai Fanaa Don Rang De Basanti Kabhi Alvida Na Kehna Phir Hera Pheri Bhagam Bhag Om Shanti Om Welcome Chak De India Partner Taare Zameen Par Bhool Bhulaiyaa Heyy Babyy Guru Ghajini Rab Ne Bana Di Jodi Singh Is Kinng Race Jodhaa Akbar Jaane Tu.000 61.000 91.70.00.000 81.48.75.02.50.48.000 81.00.00.000 82.00.000 110.00.000 60.25.000 85.00.90.000 95.000 69.00.00.00.000 82.58.000 202.75.00.88.00.000 50.00.000 79.25.00.00.00.48.00.000 62.00.00.000 71.000 82.69.000 74.00.00.00.000 58.00.94.00.14.000 61.78.00.000 71.000 89.50.50.00.00.00.000 51.000 95.000 93.00.00.67.88.00.77.000 70.00.000 93.00.00.00.50..00.000 87.000 114.00.000 71.75.000 68.40.50.000 128.000 86.25.00.00.00.000 61.00.00.25.00.57.50.25.50.00.000 49.84.000 124.000 56.000 41.

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at varying costs depending the weightage of the area/territory. A 100% for Mumbai means that the cost for with movie is sold in Mumbai is taken as standard 100% and other territories are sold at some ratio of it. Anything beyond the 25% is called Overflow which is to be shared 50:50 between the Distributer and the Producer. So a 60% for Delhi represents that the trade expects Delhi to do 60% of the business done in Mumbai circuit . 2) Released on Minimum Guarantee: Here the Distributer pays a certain MG (Minimum Guarantee money) to the producer and releases the movie. and gives the rest of the proceeds to the Producer. When the movie is sold to the distributer its generally sold from circuit to circuit. Here the Distributer keeps a certain % of the nett revenue as his share. If the Distributer recovers his MG. its called Recovery. If the Distributer earns 25% more than his MG investment he keeps it and its called his Commission which will take care of his local Print and Publicity and also some profit for him.40 CHAPTER 5 DISTRIBUTION METHODS AND MODELS IN BOLLYWOOD Distribution methods and bidding The Movie is then sold to various Circuit Distributors in one of the following methods: 1) Released on Commission by the Distributer on the behalf of the Producer.

Kerala and Andhra . . Tamil Nadu.41 The various Territories for Hindi Movies in India are: There are also some other very small territories like Assam. Orrisa.

The Major Markets are USA. though if the satellite rights are not sold by the time the movie is released then the price is definitely effected by how the movie has fared on the Boxoffice. The Overseas Numbers are always given in Gross rather than in Nett. . Satellite: Satellite bid prices have been off the roof for most of their history. that from UK around 35%.UK. Most of the deals are done before the movie is released. The Shares from USA are around the 50% mark.UAE and Australia as of now.42 Overseas Theatrical Share: The Overseas Theatrical Market is also of very high importance. Overall Overseas shares for movies are around 42-45% of the total Gross.

Hence. If this worldwide distributor earns profit. in this scenario the movie is sold outrightly to a distributor who will look after the revenue and costs after the deal. Theatrical Distribution Only – In this scenario the producer sells only the theatrical rights. in this case whatever profit producer earns would be considered for quantifying the profit/loss of a movie. Advantage with this scenario is that the margin cost which one single distributor would pay to a producer (which is generally high) would not be their in this case. Generally . Rather producer have to recover his cost of budget and individual distributors their cost (countifying the profit/loss of a individual distributor is most difficult as that amount would vary from territory to territory). Distribution Models Followed In Bollywood 1. There is always a clause that a certain print and advertisement costs and way in which this cost will be borne by the producer. Generally producer would add up a margin and sell the movie.In this scenario the producer himself distributes the movie to individual territories and hence the risk is with producer. So the entire risk of a movie is borne by distributor.43 Other Rights: DVD and Music are the most prominent from of extra revenue a movie can earn. as they distribute themselves. retaining every other rights with him/her. Case in point – MNIK. There are industry prices for most of these. Outright Sale of a movie – As it depicts. Territory Sale . All kinds of rights sold and revenue generated from theatrical business would go to distributors. Loss or profit is all on the onus of distributor here. the movie is plus and if not flop. 3. All revenue/rights/costs associated with the movie is earned/borne by the producer. though it too depends on the scale and performance of the movie too. Case in point – Almost every movie of YashRaj banners. 2.

it looks like a mixture of 3 and 4 model that Red Chillies is following for this. would make the distributors happy. would be shared by Eros and Red Chillies. An example would help in understanding this case. we will share the revenue of 1 cr. Minimum Guarantees – In this scenario the producer and distributors would agree upon the minimum amount which a movie should fetch in order to share the profit. I will repay the amount of 1 cr. So a theatrical revenue of say 155 cr. every other rights/costs/revenue would be earned/incurred by Red Chillies save theatrical revenue against which distribution cost have been incurred of 77 cr. the price of distribution is low in this case than normal scenarios. Action Replayy. PP – 22 cr. 4. Anything over and above 155 cr.One. Anything above 77 cr. to distributor. All that the distributor needs to do is to earn that theatrical business which justifies the cost. at minimum guarantee and suppose a movie makes only 4 cr.44 the producers and distributors earmark certain fixed amount for advertisement in this scenario which is shared and fixed before hand. CostsProduction – 150 cr. Case in point – Khatta Meetha. Red Chillies would have incurred every other expenditure related to a movie and would have earned all kinds of revenue by selling rights including distribution rights till the figure reaches break-even for distributors. Now coming back to Ra. On the other hand. would be shared between Red Chillies and Eros. If I as a producer sell the movie at 5 cr. That means. . Producer who had incurred money on making the movie would be depending on all sorts of revenue to come in green. If the movie makes 6 cr. Generally.

All in all Red Chillies is at Break-Even already. Game copyright – 5 cr. Addressing this topic at ASSOCHAM. . revenue would be earned by Red Chillies. moderator IPTV India Forum vice president Sujata Dev conducted a discussion with Eros International UK executive vice president Marcus Stuart. Music Rights – 15 cr. it has become essential for content distributors to ensure maximization of profit and appropriate exposure level of the content. (Expected or more) Satellite Rights – 35 cr. So in all around 170 cr. DTH/DVD – 7 cr. So anything above 155 cr. All we can say right now is that a theatrical business of 155 crores would make the movie green for ALL. Merchandise and promotions – 14 cr. DISTRIBUTION PATTERN FOLLOWED IN NEW DELHI REGIONS As movie distribution markets worldwide are beginning to grow. Hunters College head entertainment division Klaus Muller. theatrically will start giving returns to Red Chillies and Eros both.45 Revenue – Theatrical Rights – 77 cr. (which if we assume profit-share ratio of 50% between Eros and Red Chillies) theatrical business that is. P9 Integrated CEO Navin Shah and Movico Technologies senior advisor Andy Jacob.

Elaborating more on Shah Rukh‘s contribution he said. Tremendous feeding has gone into this. merchandise and also Shah Rukh Khan. he went to Germany to promote his movie.• Shedding light on film marketing P9 Integrated CEO Navin Shah pointed out. digitization and censorship amongst others. which are a mix of Bollywood and regional cinema. It is essential to promote brand Bollywood. Movie content consumption has grown beyond the Indian Diaspora. its growth. Germany as a market for Bollywood has not grown suddenly. Talking about movie consumption. film festivals. Hunters College head entertainment division Klaus Muller said. The foremost reason for this is the ability to escape from reality by way of song and dance.• Shah further added. In 2002 when Shah Rukh starrer Asoka released. Distribution is the push factor and marketing is the pull factor. Not only upper middle class but also the middle class people have begun to like Bollywood. Since then such activities have been undertaken and today we can finally see the result by way of emergence of a new market in Germany. marketing. if he allots 30 days to promote Bollywood around the world it would really help. theme parks. Out of the total Rs 1000 -1500 crore rupees that is given as entertainment tax. we should invest Rs 200 crore annually on promoting Bollywood via festivals.46 During the discussion panelists spoke on varied topics such as movie content consumption. Shah Rukh dedicated 40 days to promote Om Shanti Om. If films become brands they will transcend borders.• . Western population likes to watch Indian films.

six years. Hollywood films are filled with a lot of arrogance. The Eros website receives 65 per cent hits from the US. Digital distribution of content on internet in India is less. 13 film festivals are too few to showcase them. Currently I am more optimistic about the digital distribution in theatres. to tie up with tourism board of various countries to promote Bollywood by way of shooting movies in their country and in turn ensure fine distribution of the movie in that country.• Further commenting on the varied Censorship Regulations of different countries and its impact on promotions Marcus commented. . Bollywood content is far more positive in nature so even if a few obscene scenes are deleted in India it will not restrict its worldwide promotion. Many American companies like Sony.• Speaking on Digital Distribution of content Eros International UK executive vice president Marcus Stuart said. New York City has 25 film festivals and India has only 13 film festivals. Muller also commented on the importance of the Co-production of movies between India and companies abroad. focus should be on building good content rather than to over expose it. Film festivals should be supported if Indian films need wider recognition. On the other hand. destruction and aliens in it. He said.47 Muller also stressed on the importance of Film Festivals. For a country that produces 1000 films and 2000 documentaries and short films. Viacom and Fox are now investing in India. The Internet medium in India will change in the next five .• Some more facts that were pointed out included dubbing or sub titling of content to reach out to smaller markets in order to suit the specific city/country.

The movie business is one of the most complexes in the communications industry because of its creativity. pricing in the movie industry seems very standardized. story. then the prices fluctuate widely. stars. PRICE At first glance. product placements and a host of offshoots that are bought and sold. toys. style all need to be presented aptly. A movie product is the intellectual property that can be ported to a variety of deliverables: theatrical exhibit. it needs to be clearly identifiable in its marketing — genre. posters. Another product dimension is that of franchise rights. non-theatrical exhibit. At any multiplex is cinema hall. Internetserved etc. special effects. CDs of the soundtrack. DVDs. its diversity and its continual explosions of technological delivery options. doesn‘t it? But if we look into the broader definition of the movie product just defined. games. leased and rented. video tapes. endorsements. . television and cable broadcast. Then there is merchandising such as clothing. a movie ticket costs the same for all movies. collectible editions.48 CHAPTER 6 FACTORS AFFECTING THE VERDICT OF MOVIE IN THEATRES PRODUCT For a movie to selected by the audience on the basis of the content.

pay-per-view. festivals. special releases. bundled deals. the key creative talent. we see a wide range of pricing structures such as theatrical tickets. like pricing the DVDs very cheaply. But with piracy at record levels globally. title sales. . Retail stores sell to communities (groups) and individuals and families. Pricing has become a global issue. Scriptwriters sell to producers. cable channels and now we have movies and games on cell phones. title rentals.and timing -. group 4-wall rentals.49 A distribution contract can be structured in many ways that result in very different returns for the producer. a variety of pricing -. licenses. on iPods -. Even word of mouth has a price. Producers sell to investors and distributors. subscription services. percentages and order of payment  Promotion budgets (P&A) Apart from these pre consumer stage pricing differences.on electronic billboards.strategies are being tested. and even the distributor. downloads. Families "sell" to friends and more family. Distributors sell to exhibitors and chain stores and Internet dealers. The release of a DVD has always been timed to protect the theatrical revenue model. delayed broadcasts. Elements that are negotiated include:  Theatrical release schedules  Territories and market segments  Revenue splits.

PROMOTION Promotion is a powerful marketing tool. not only during the premier of a new product. people find venues for entertainment sales not only through traditional theatres and broadcast. over the Internet. through clubs etc. . sell-through stores. over phones (caller tunes). store clerks. and Internet strategists market to the end consumers. And then. some consumers even market to other consumers – their family. retailers. Distributors market to exhibitors. music. They market their story to investors and distributors. but they seldom market that product directly to the consumer. games. non-theatrical groups. the Internet.50 PLACE With the ever-inventive entrepreneurial energy in the entertainment world. rental stores. news. The theatre exhibitors. to top off this complex stew. friends and co-workers. but throughout its lifecycle. Producers create the endproduct for the consumer. and educational content. even cell phones and the latest new media gadget. Distribution takes place through theatres. catalogues. Options for delivery of the movie product are exploding: movies. retailers and sub-distributors. but on street corners. in homes.

music director. The main aim of the producer is to sell his movie at a high price to a distributor. The producer then officially hires his core team of director. editor. The director gives an estimated budget and schedule to the producer for the film shooting. In general the movie making business can be summarized as follows: The scriptwriter or director or a producer comes up with a concept. the producers publicize the film in order to pull crowds to the theatres. Location hunting is done for shooting the film. The producer tells the scriptwriter to create a script based on this concept. The distributors buy the movie at a price suitable for their territory. This process is called casting. the banner. lyricist. At this stage the publicity and promotion phase of the movie begins for the producer.51 Overview of the film making business This overview is required to understand the exact motivation behind the promotion and publicity of a movie. To get a high price from the distributors. India is a vast country and the market has conventionally been divided in 9 territories by the distributors. The completed film is processed in studios and the film is finally ready for release. A distributor from each territory buys the rights to distribute the film to the theatre owners in his territories. The cast for the film is decided based on the requirement of the script. The producer arranges finances from financers based on this budget. cinematographer and choreographers. The distributors estimate how the film could work in their territory based on the pre-release promotion of the film and the past record of the people associated with the film (For example. The film is shot. . scriptwriter.

the producers share some information of the movie to the distributors through trade guides. If the music of the film has done well in the market. how the movie is being promoted. The trade guides give the distributors an idea about what the theme of the movie is. . The distributors then release the movie prints to theatres. Producers also get a percentage share from the ticket sales. Before the release. The distributors and theatre owners get money through the ticket sales.52 the director and actors). The distributors compare different trade guides and decide which movie they want to buy. does the theme suit their territory. what theatres in their territory would be ready to screen this movie etc. the producer definitely gets a higher price from the distributors.

Art movies . 2) Classification of movies as products Here movies have been classified into different genres and there attributes which could be used for promoting movies have been identified. B: Mass movies Gentry movies are the ones which are made for the audience with special tastes. Movies for kids. young couples etc fall in this category. rickshaw pullers etc. A: Gentry movies. I. Entertainment movies. Mass movies are made for audience who are interested in pure entertainment value of the movie. college students. II. These movies have done well recently due to the advent of multiplexes.53 CHAPTER 7 Classifiction of Bollywood Movies 1) Classification of movies from a producer’s or distributor’s point of view The movies in India have been broadly classified into following categories for publicity purposes. These movies appeal to a broad set of audience in the middle class and lower class of the society like the daily wage workers.

These can be further divided into following categories: 1. Deewar. Action / Romantic movies. Border. Also called Masala films. Hero. Om Shanti Om etc Attributes:  Item numbers  Catchy Music  Big openings  Action sequences  Stardom of the lead actors plays the most important role in deciding the fate of the movie. Attributes:  Patriotic songs  War setting  Terrorism  National flag  Army setting . Rang de Basanti. potboilers. E. Sarfarosh. 2. Entertainment movies: These are also called Mainstream Cinema or Commercial Cinema. Include Action movies and love stories. Haqeeqat. Patriotic / war movies E. Indian.54 I.g. LOC. Lakshya.: DUS.g.

The Legend Of Bhagat Singh . 4.  Commercial success notwithstanding. Gandhi. Corporate Attributes:  Meaningful songs  Generally star cast is not heavy. it becomes the central theme of the movie. Sardar.g. a great Indian lavish wedding is also shown.g. Page3. Socially relevant movies E. Viruddh.  Generally. 5.  Indian families and the relationships between them are highlighted  Celebrating Indian culture using modern production values. a story of a family and what happens to them in a crisis.  Mostly based on real life stories. Sometimes.55 3.  Generally critic‘s award winning. Biographical Films E.: Hum aapke hain kaun. social message gets a high importance. Family movies E. Waqt Attributes:  Generally. Baagbaan. Guru. Taare Zameen Par. Rudaali. Ta Ra Rum Pum. Bose the Forgotten Hero.g. Hum saath saath hai.

golmaal. Cute faces of the animated characters. Children‘s Films E. Hanuman Attributes :  Supernatural thrill.  Animated films. hera pheri. 7.  Mostly facts which are unknown to general public are shown.  Funny sequences in trailers. bheja fry. Style. Garam Masala. followed by directors and actors involved.  Story is the main strength.56 Attributes:  Controversies help a lot. 6.  Funny trailers. Comedy E. Khosla ka Ghosla Attributes:  Director‘s reputation as a comedy film maker.g.  Pranks played by the characters in the movie.g hungama.  Music is generally on a back foot. Koi mil gaya.  Actors involved. Makadi. . kunwara. Bhoothnath.  Child actors. Chupke Chupke.

 Actors are generally not from main stream cinema and are considered to be better actors then their commercial cinema counterparts. Dor. woh kaun thi.g Fire. Attributes:  Music which creates a suspenseful environment. Kaun .g.  Release timing of the films are mostly consistent with one or more incidents in news which are related in one way or other to the subject of the film.  Generally challenges the audience to dare to watch them. Mr. and Mrs. gumnaam. Iyer Attributes:  Taboo subjects are raised.  Screaming trailers. . Astitva. mahal. II. Ardh Satya. Mandi.  Eerie sequences and songs. Raincoat.  Generally trailers shown with dark coloured background. Horror/Thriller Films E.  Controversial nature of the theme of the movie helps generate people‘s interest in the film . Art Cinema E. Bhoot.57 8. Raaz. 100 days. Danger.  Fast paced story line.

Population : USA : 307 Million + 33 Million(Canada) = 340 Million India : 1115 Million North America has 30% of the Population Compared to India. Three Biggest Industries are: . still we are taking a conservative approach as it will give a bigger number for India Footfall.(not the other way around). USA Footfall : Year : 2010 Total Movies : 534 Total Gross in USD Millions : $10.USA has 2 times more footfalls than India. So.565.4 Average Ticket Price : $7. Bollywood can be approximated to have similar impact in Cinema of India as far as Money inflow is concerned.58 CHAPTER 8 ANOMALIES IN BOLLYWOOD With 30% the Population and One-Third the Movies.Even if the number is more than 40%. a calculation for Bollywood can be done and then converted to a All India Number.89 Total Footfalls : 1339 Million ~= 134 Crore India Footfall : Considering Hindi is first language of approx 40% of People in India. Year : 2010 Total Movies : 1572 {1274(India) and 298(Foreign)} It should be pointed out though that out of these 1572 Movies only about 30%(~ 500) movies do substantial business.

The Most telling figures are how the biggest historical blockbusters of Modern India don‘t outnumber their counterparts in USA in terms of Footfalls. Even if we add 5 crore extra as error we get just about Half of USA Footfalls(134/2 = 67 crore).5 cr And its not like India lacks exhibition prowess.000(not a typo) Single Screens with many of those Single Screen being taken over and renovated and around 40-50 new plexes being made each year.59 Hindi 215 Tamil 202 Telugu 181 Total Gross in Indian Rupee : ~2000 Crore Average Ticket Price : 80 Rupee(That will be approx probable ticket price for a movie like Bodyguard) Total Footfalls : 25 Crore Now.5+ cr in BW or 6+ cr All India Titanic = 12.historically . though most metros have reached saturation by now. USA has around 2000 Multiplexes and India has approx 850 Multiplexes and 11.5 cr in BW or 9 cr All India 3 Idiots = 2.75 cr Avatar = 10+ cr The Dark Knight = 7. Gadar ~ 4+ cr in BW or 10 cr All India(Though we are taking liberty in terms of thinking a movie will generate same hysteria All India). so for All India they will be : 25/. Infact. HAHK ~ 3.5 crore. that 25 crore footfalls are only for Bollywood.4 = 62.

Due to unparalleled demand for the film after its release. This resulted in ticket prices going up heavily and the family audience which rarely ventured into cinema halls at the .(As is the case in USA).3 in rural areas).6 a day in urban areas and 14. exhibitors upgraded their theatres to get prints of the film.6% of the total Indian population falls below the international poverty line of US$ 1.whereas India may have more joint families and more close knit environment. 3) Cultural : Most of USA lives in nuclear families where ―Weekend Escape‖ with different entertainment activities is of the highest importance. where they might spend the weekend evenings just talking or playing cards. in nominal terms 21. The release of Hum Aapke Hain Kaun was a defining moment in the box office history of Hindi cinema. for them watching movies and that too in theaters is out of question.which actually is similar to the Population of USA. So those 40+% who are thinking of how they will feed themselves.60 total number of footfalls have been pretty much decreasing in India every-year or just about Steadied. Probable reasons for the above could be: 1) Poverty in India : According to a 2005 World Bank estimate.25 a day (PPP. 2) How much of India is actually affluent? : The real driving force of India Economy in all spheres is said to be the 300+ Million strong middle class. Hum Aapke Hain was a limited release on hand picked theatres by the makers of the film and prints were only given if theatres were upgraded to a certain level. 41.2006 onwards has seen a better period relatively.

61 time due to sub standard theatres came back in full force and not only did Hum Aapke Hain Kaun smash all records but took business for films released afterwards to another level. To put into perspective how business changed after Hum Aapke Hain Kaun is that before Hum Aapke Hain Kaun an all India share of 10 crore for a big film was regarded as blockbuster business but after Hum Aapke Hain Kaun the blockbuster business figure went to 20 crore. .

The star cast of the movie is also associated with publicity at this level. Also. At producer level the publicity of movies is done at a large scale with a national or international scenario in consideration. This publicity is aimed at all the target audience in the country for creating a ―buzz‖ about the movie. The media used at this level are posters. The budgets at this level are very big and the media used are teaser on TV channels and cinema halls. hoardings. this publicity tries to reach the audience who may not have access to cable TV or radio. local newspapers etc.  At distributor level. But the scope of this is publicity is limited to the distributor‘s territory.62 CHAPTER 9 PUBLICITY AND MARKETING OF BOLLYWOOD MOVIES Publicity of movies The publicity of a movie takes place at two levels:  At producer level. . At distributor level the publicity is mainly for making the target audience aware about the theatres where the movie is playing and the timings of the movies. The budgets allocated for such publicity are comprehensive but smaller than the budgets at producer level. national magazines etc. radio.

Hindi film industry. Asha Bhonsle. K L Sehgal. music experts have flirted with western influences too yet the Indian flavor has always remained there. Khaiyyam and many others. composers and lyricists are attracted to the Indian Film industry. most of which are musicals and feature elaborate song and dance numbers. S D Burman. . It is mainly because of the same reason that almost all our means of entertainment are inspired by music. India is a land of great musical heritage. It is because of the huge popularity of the Indian film music that a large number of talented music directors.63 Music as a promotion tool One of the most popular Indian music forms is the Filmi music. A R Rehman. Though in the process of evolution. with some Western elements. singers. The Indian film music has given a number of great music talents over the years. popularly known as Bollywood. In the early years of Indian cinema. R D Burman. Indian Film Music is said to have begun with the release of Alam Ara in 1931. Kishore Kumar. the music was mainly classical and folk in inspiration. The Indian film music experts have always experimented with new things to cater to the changing tastes of music lovers. The most fascinating part of Indian film music is its evolution with time. Some of the notable are Lata Mangeshkar. Mohd Rafi. Another trend in Indian film music is that of integration of some popular regional languages such as Punjabi. Oudhi etc. produces thousands of films a year. along with Indian regional film industries.

Gangster. music being their saviour. However the style has to be attention grabbing and interesting enough for the target audience to think about the message or remember the message. Messages and styles used for promotion of films The publicity of the movie is about highlighting appealing aspects of the movie to the audience. Movie soundtracks are released as tapes and CDs much before the movie is released.There are a lot of movies which have been box office successes despite a bad story line. item numbers etc. Movies like Aashiq Banaya Aapne.Aks are classic examples of such movies. The messages a publicity campaign try to convey to the audience vary based on the type of film and the target audience.Dum. radio was the main media of Film music but with the coming of satellite TV and FM radio the scenario has completely changed. China gate. For . Variations in this include multi star caste songs . An elaborate music release function is held for even low budget movies as it is an important way of garnering attention. but these days music is used as a vital tool for promotion of movies. There is also a new trend where old hit songs are being re-mixed and used in movies to attract audience. Jhoom barabar Jhoom. with a peppy or racy beats which also attract viewers. Bas Ek Pal Anwar. Any music release function is usually covered by the press and a few television channels (specially dedicated to covering news about the film industry). Earlier.Thus. Generally the messages are about the strengths of the movie. music is used as an important promotional strategy for films these days.64 Earlier music was a part of the films and was mostly used only when the song gelled with the flow of the movies.Woh Lamhe. The style in which these messages are delivered also varies.

This resulted in some losses. Posters and teasers gave no hint of what the movie was about. The movie music was promoted. The music was very successful. This generated a big initial week collection. . sometimes messages that arouse sentiments in the audience are also used. The Music of the movie was an added advantage. banner or the subject of the movie. However since the length of the movie was 4hrs. director. This generated an enormous amount of curiosity for the movie among the audience. The advertisements aroused public sentiments by highlighting Sunny Deol‘s rhetoric on Pakistan and showcasing partition riots in graphic detail. India is a cricket crazy country. only 3 shows per day could be screened. However. music can be considered as strengths of a movie. England match set in the British raj era? Gadar This is a good example of how the public sentiment can affect the fortunes of a movie. Lagaan and Gadar are good examples of successfully using the audience sentiments to their advantage.65 example the lead actors. This movie of the masses used the lay man‘s sentiments of patriotism to its advantage. After the first weekend the marketing strategy was changed and the cricket match in the film came into focus. The movie was released all over the country at the same time. How can Indians ignore an India vs. Lagaan The theme of the movie was a tightly guarded secret.

aishwarya chemistry after success of Dhoom 2  Ashutosh Gowarikar is the director with a great track record.  Larger than life portrayal with grand jewellery and costumes.  Tie up with Tanishq for Jewellery. (4hrs)  Controversy surrounding historical facts created buzz .  Star cast of Hritik Roshan and Aishwarya Rai.JODHA AKBAR  Period film and a love story  Sole release of that week. Film 1 .  Extremely lengthy narration of the story.66 Both Lagaan and Gadar enjoyed great success after the first week because of the good quality of the movies. then it is sure to generate a good mouth to mouth publicity. It is said that people in villages travelled in trucks and tractors to the cities to watch Lagaan and especially Gadar.  Hrithik . Mouth to mouth publicity played a major part in the success of these movies. To analyze various messages and styles used by film promoters. attributes and factors relevant for promotion of 3 different films of different genres were analysed from promotion and publicity point of view. We can safely conclude from these examples that if a movie successfully appeals to public emotion.  Good music and meaningful lyrics.

―all hot girls‖ created a hype  Released during Diwali – audience looking to kill some free time  Controversy related to Manoj Kumar created hype.  Hanuman is already known to the Indian audience.Reputed for good Choreography  Sharukh‘s Six pack Abs hype  Multi star song sequence .) Film 3: OM SHANTI OM  Shahrukh Khan  Catchy music.67 Film 2: HANUMAN  Animated movie with an Indian mythological character as the lead. (No need to make people aware about hanuman and his super powers.  Recreation of the 70s setting.  Kids movie.  Brand Hanuman used for merchandising.  The cute face Bal Hanuman and his pranks appeal to child audience. .  Hanuman fighting with devils in new Hollywood styles (Matrix)  Movie making a statement on current state of affairs.  Expectation and curiosity generated for the debutante Deepika Padukone  Promotion on TV shows – all music reality shows like Koffee with Karan  Promotion in cricket matches coinciding with the release.  Director Farah Khan .

Om Shanti Om ended up being a super duper box-office success. film-makers never ventured in-front of the camera and our main stream media couldn‘t care less. cricket matches and last but certainly not the least. the Indian media plays a vital role in this process.e. be it non-stop television promotions. King Khan took the job of film-marketing to a whole new level. Today‘s Bollywood presents a very different scenario. With over 1000 films releasing in a given year. all of them fighting for a common goal i. Superstar Shah Rukh Khan is a fine example of the above. His perfectly knitted marketing tactics. the multiplex domination – it has become a necessity for those involved. the 6-pack (over-toned) tag line. the box-office success. And yes. tying up with news-channels and popular online sites. birthday celebrations with the Indian media. to do whatever it takes to enforce that ―must-watch‖ feeling among the masses in order to win this very competitive rat-race. . despite a weak storyline and very mediocre performances.68 How different media is used for publicity of movies? Gone are those days when plastering a few posters on the walls and hand-painted Billboard signs were the only means available for a film‘s publicity. And as a result. Actors barely promoted their films. the OSO clothes line – in short.

The "making of" a saga which is couple of hours long shown on the TV gives an insight into what went into the production of the movie. Nowadays. They have no relation whatsoever with the movie's storyline. reality shows etc. "making of". Trailers. The recent years have seen use of a special category of songs called "item songs". star appearances on TV shows. that give little info about the movie while buzz amongst the audience about the movie. like talk shows. songs which are shot and included in the movie especially for the purpose of advertising the movie and pulling in crowds. these item songs are shown on TV in full length just for advertisement purpose. . actresses and even the people behind the scenes – producers and directors on various TV shows.69 The mainstream advertising for movies. It helps generate interest in the movie by giving away parts of the story and some scenes. Then there is "special appearances" made by the actors. making the viewers salivate to know about more. interviews. reviews and movie news. all forms a part of the promotion strategies adopted by film makers. targeted at the end users is done via TV. songs. Over the years trailers have been transformed into teasers. Songs have long been used to generate interest in the movie. This provides for a free publicity channel for the film makers. Movie trailers form the conventional part of advertising movies via television.

Prior to the launch of the movie. of India. The station featured interviews of Preity Zinta. listeners got the chance to hear each of the stars of the film all day from 9 am . and music directors Shankar-Ehsaan-Loy during the music premiere. featuring dance experts from Bollywood. Tie-ups with radio channels for marketing films are becoming increasingly common. Listeners will also got the opportunity to win prizes like free music CD‘s and movie tickets of the film by participating in the 'couples contest' wherein each partner is asked questions about the other to gauge on how well they 'Jhoom together'. Common promotional activities include on-air contests.7 pm.70 Other Major Channels of Marketing (apart from TV) Radio According to the Ministry of Information and Broadcasting. Lara Dutta. etc.7 FM provided special content around dancing. there were approximately 132 lakh listeners of FM radio in the major metropolitan cities across India.7 FM with Yashraj Films as its exclusive on air partner for the film Jhoom Baraabar Jhoom. music and movie premiere coverage.. an option to meet the stars in person. shelling out complementary movie tickets. interviews with film stars and music composers. in addition to getting an opportunity to interact with the stars of the film. Bobby Deol. Taking the case of the tie-up between Big 92. Govt. Big 92. Also. including the film's ace choreographer Vaibhavi Merchant giving dancing tips to listeners. . Listeners could win a chance to be part of an exclusive music video 'Jhoom Baby Jhoom' featuring common people dancing to the title track.

The dramatic evolution of communications technology. a buzz about the theme of the movie marketed is ensured. However. The tactics used in promoting movies like Veer Zaara and Swades through R World consisted of automated calls from Veer Zaara stars Shahrukh Khan and Preity Zinta to consumers' mobile phones. This way. A substantial segment of the population is favourable to games related to films. as well as memory enhancements. Contests and dynamic updates available on cellular networks generate repeat look ups. There is also scope for television channels to send out SMS alerts half an hour before a movie is going to be aired. wallpapers and caller tunes are very popular nowadays. followed by SMS contests. high quality and uniquely personal viewing experience. More importantly. Internet The internet is increasingly emerging as a profitable medium to create hype and promote new film. So television movie channels and film distributors need to place reviews in WAP portals that are frequently accessed. means mobile devices are now capable of delivering a compelling.71 Mobile phones India is the fastest growing market in the mobile world. Not surprisingly. Consumers want SMS short reviews as well as schedule of theatres on the mobile. There are approximately 30-40 million . from download speeds and battery life to compact form factors. which were a huge success. for mobile movie marketing there is life beyond these services. screen sizes and resolution. a large population prefers to read a film‘s review before seeing it. ringtones.

trailers. and a web link to the official movie website with storyline. music. Anthony Kaun Hai ran an online contest with winners meeting the stars. To promote Kabhi Alvida Na Kahna. Lage Raho Munnabhai‘s promotion on MSN India consisted of video clips from the film aired on desktop TV airs. Industry experts believe that the cost effectiveness of the online medium is one of the reasons for its popularity. crew. Internet as a medium to promote a film is a viable option as it offers a wide platform of activities like reviews. A recent survey conducted by the Internet & Mobile Association of India (IAMAI) says that close to 90% internet users surf the net for movie related information and 42% of the surfers use the net for this purpose more than once a week. Among the first studios to have started off promoting films on the Net was Yashraj Films. MSN also designed a theme pack on Messenger based on the film‘s characters. contests and interactive features. information on cast. RDB‘s characters wrote interactive blogs. bulletin boards.72 internet users in India today. NRIs are also passionate about movies and like to download wallpapers. An online campaign on the other hand costs only one-tenth of the amount a producer will spend advertising the film in the print medium. The survey also found that 54% of the net users watched at least one movie per month. email. and blog for marketing movies which in turn creates a buzz about the film. Online promotions also enable filmmakers to tap the overseas market. photos and screensavers. Their Mujhse Dosti Karoge went on to win the prestigious ABBY Gold award for its Internet marketing initiative in 2004. trailers. . the entire song Where‘s the party tonight was featured on MSN‘s desktop TV. ring tones and take part in celebrity chats.

revenue-wise. Components of the Indian film industry Hindi films The Indian film industry comprises of a cluster of regional film industries. It is estimated that only INR 50 billion finds its way to the industry coffers. Telugu. Malayalam. like Hindi. popularly referred to as ―Bollywood‖. These regional language films compete with each other in certain market segments and enjoy a virtual monopoly in certain others.Out of the 200 Hindi films made in India each year. Tamil. . The most popular among them is the Hindi film industry located in Mumbai. Bengali. it accounts for only 1 percent of global film industry revenues. These Bollywood films are released throughout India on both big and small screen formats. with several of them being screened overseas as well. It accounts for over 40 percent of the total revenues of the overall Indian film industry. etc. with the balance INR 9 billion being cornered by pirates. However.producing almost a thousand films annually.73 Overview of Indian Film Industry and Market India is the world's largest producer of films by volume . around 150 are made in Bollywood. virtually all films having a national audience. which is currently estimated at INR 59 billion. are made in Bollywood. Kannada. Though there have been sporadic instances of regional films. This makes it one of the most complex and fragmented national film industries in the world. enjoying a national release or even an overseas release.

out of which over 95 percent are standalone. Bengali and Punjabi. from INR 1 . Alterative marketing methods Teasers In the world of entertainment branding and promotion.000 in 1990). where promos and trailers create viewer perceptions. teasers play a very vital role when it comes to films and their marketing. single screens. With around 12.8 billion for 72 films in 2004. box office collections of foreign films grew in both revenues and number of releases. which produces far less films than India. .000 screens.000.5 billion from 60 films in 2003 to INR 1 . India's screen density is very low. On a cumulative basis. three years ago. has 65. the number of regional films produced annually has fallen from around 800. In contrast. with their dubbed versions making inroads into the semi-urban and rural markets. which together earn around INR 15 billion.74 Regional Films The major regional film industries are Tamil and Telugu. followed by Malayalam. while US has 36. to around 650 currently.900 active screens (down from 13. With increased viewer exposure to a plethora of entertainment options on satellite television. China. English Films Big budget Hollywood films are beginning to make a mark.

Creating a teaser for any film involves huge financial risk. Hence. A teaser for a film is essentially created to drive in the maximum number of viewers to the theatre in the first week of the film‘s release. the fate of the film at the box office completely depends upon its content. The teaser does not speak anything about the film. It needs to mock. thus encapsulating the core idea of the film . Ideas need to be spinned off differently and effectively. This is what an effective teaser is all about. Thus. however it has to get the core idea right.fear. It is about creating that ‗glimpse of mystery‘ about the film just before its theatrical release that will eventually attract more audiences to the theatre with a motive to demystify the perception created. annoy and arouse. It only throws a punch of fear at the audience. A well knitted teaser should not steal any scene from the movie. The voice over was filled with ―intense fear that generated post the completion of a summer project. creating it effectively becomes a must. The teaser of the low-budget American horror film ―The Blair Witch Project‖. This is because post week one. producers seek to drive in maximum viewers for the film during the first week and generate maximum revenue. It creates a mystery about the film thereby calling the viewers to watch the film and demystify the mystical. An effective teaser needs to create a lot of anticipation. . by using effective teasers. released in 1999 showed an ―absolute black‖ screen powered by a strong voice over.75 A teaser is all about illusion and aura.

and high-income segments. engage. Tom Cruise. especially growing mid. the demand for international fare among the English-educated Indians is growing. and the US film industry is becoming more aggressive.‖ Hollywood marketing strategies in India With increasing literacy levels. and create anticipation amongst the viewers. In fact deceive the viewer first. Karan Johar. And for them. As recently as 2005. But Hollywood profits in India are growing at 35 percent a year. and to tempt. Also remember. is rediscovering the magic of cinema in the plush multiplexes.76 As aptly summed up by Frame by Frame creative director Anita Olan . Indian films center on family and romantic themes and seldom do they offer big-ticket action or jaw-dropping visuals. Indian audiences watch Hollywood films for what they cannot get in Bollywood films. the wellheeled urban Indians. Post-globalization. foreign films accounted for only about 5 percent of about $1 billion in theatre tickets sold annually here. only to leave him with a surprise at the end. which is why films offering that style of entertainment do well.―Teasers are always the best way to engage the curious viewer. it‘s always ok to mislead. . one need to build effective teasers. and Rani Mukherjee. Hollywood offers the latter. Steven Spielberg and Julia Roberts are as good as Shahrukh Khan.

Premieres are being held here. Telugu. Reviews and Box office figures are flashed across Indian media and the buzz continues with the Indian media giving space to these films till their release in India.77 Hollywood's Major Initiatives in India:  Simultaneous release of blockbuster films and India release within 3-4 weeks for other major films. which increases once the film opens there. Media penetration and internet usage has created greater awareness for Hollywood films in India. Tamil. Because of the multiplexes. Hollywood is promoting its big-ticket films like any other big Bollywood release. dubbed into a local dialect. Promotions of Hollywood films are being adapted to suit the local taste and flavor.  Dubbed versions supported by localised consumer-centric campaigns take playability of Hollywood films beyond metros.S. . about 4 years back. U. vis a vis the time difference between US and India release. which was as long as 6 months to a year. thereby adding to ticket sales.S. These dubbed versions contribute almost 50 per cent of the company's revenue. right from the time they are promoted in the U. Hollywood studios could release a good number of their films in the country. There were paintings of the action figure on Mumbai trains to promote Spiderman 2. There are tie-ups with corporates and there is even merchandising at a small level.. The massive global release meant that poor villagers in central India were able to queue up the same day as audiences in Los Angeles to see the film.  Increase of almost 100 percent in the marketing and publicity budgets for all Hollywood films by the major studios. and Bhojpuri. Spider-Man 3 was dubbed into Hindi.

Sony BMG especially created a single for the movie sung by the famous Pakistani band "Strings". the Spiderman was shown swinging in and out as and when the channels IDs appeared. Sony Entertainment Television (SET).78 Here we take the example of promotion of Spiderman2 which created a benchmark for Hollywood movies‘ success in India. The era of Bollywood v/s Hollywood has ended. . Their first major film promotion in India was through their hi-end retail stores "Sony World". Another Sony TV outfit. SET MAX. specially created a program called "Spotlight. These phones were promoted through a tie-in with the film. On both SET and SET MAX." hosted by Mandira Bedi. Sony Electronics also played a part. Sony Ericsson launched their first branded phones in India (Spiderman 2 mobile phones). AXN also had a Spiderman bug (the image of Spiderman) on their logo on a 24x7 basis. courtesy multiplexes which have added capacities. It's now an era of coexistence. was tied in to promote the film through their high visibility programs such as Jassi Jaisi Koi Nahi /Yeh Meri Life Hai. Sony's Indian television arm. Sony Pictures went all out. their brand ambassador and a celebrity in India. Sony Pictures Home Entertainment promoted the film through their DVD and VCD sales for Spiderman (the first part). To promote Spiderman 2.

The object for this is to combine the strength of two brands. Points to make note of while co branding with respect to movies: Matching the target Co-branding movies and products succeeds when the movie and the brand target the same audience. colour schemes. The typical cobranding agreement involves two or more companies acting in cooperation to associate any of various logos. make the product or service more resistant to copying by private label manufacturers. children form the major audience. The co-branded . in order to increase the premium consumers are willing to pay. or brand identifiers to a specific product that is contractually designated for this purpose. or to combine the different perceived properties associated with these brands with a single product. it is mutually beneficial.79 Co-branding and Merchandising Co-branding is an arrangement that associates a single product or service with more than one brand name. In case of movies like Krrish. or otherwise associates a product with someone other than the principal producer. Pidilite Industries‘ Acron brand of ―Rangeela‖ colours has brought out special packs based on the film. Commercials on cartoon channels are inspiring juvenile viewers to ―celebrate the magic of Krrish with ‗Rangeela‘ colours‖. Also. This means that brands targeted at children should be used to reap maximum benefit.

80 colours are also being made available at the multiplexes where the film is being screened. Intelligent co-branding Using brands to promote movies can be more effective when the branding is in tune with the film. For example. the common men turned heroes in Rang de Basanti. However. and Krrish‘s character is all about protecting the world from enemies. they can be spotted on T-shirts. An important variable in co-branding is ―the fit between the movie and the brand‖. HLL chose to associate its Lifebuoy soap brand with Krrish HLL chose Lifebuoy over the other brands since the brand is all about protection. the romantic pair in Fanaah or the animated god Hanuman. mugs and other paraphernalia. the co-branding will work better when it is designed intelligently so that it seems natural for the brand to be associated with the film. Be it the super hero Krrish. around youngsters‘ . In the case of Krrish. Merchandising Now the story does not end with the leading man and lady living happily ever after. on your kids toys. It goes to add T-shirts. no doubt the aura of the Superhero can be expected to rub off on the brand.

including a pendant sported by Aamir Khan in the film. For Fanaah Yash Raj Films had three different products. it not just serves as link between fans and brands but also provides a great publicity base and a recall factor for the movies. While Adlab films struck a deal with Mattel toys for the Superman toys apart from T-shirts. merchandising is fast making headway. They also came up with a limited collection of Spirit of RDB T-shirts with Provogue. Riding on the popularity of these films. key chains and bags for Superman Returns. which had the images of the stars on it.81 necks. makers in India are going the George Lucas (Star War maker) way whose merchandise till date has reportedly touched $20 billion in estimated revenue. . The figures in India haven‘t skyrocketed to such heights but with the way things are shaping up. The reasons are more than the fact that merchandise is an established revenue stream. For Rang de Basanti the makers joined hands with Coke for exclusive limited edition coke bottles. even in your refrigerators and many more such places not marked for them earlier. The makers of Krrish tied up with Pantaloon Retail India Limited for manufacturing and marketing of Krrish merchandise.

. merchandising is a proven winner with a huge potential to be explored and filmmakers are all set to take a plunge in it.82 Whatever may be the benefits attached.

or sometimes a little over that. regional films.83 CHAPTER 10 COMPARISON BETWEEN MULTIPLEXES AND SINGLE HALL THEATRES Multiplex Theatres in India has come a long way since its inspection in 1997. The revenues being generated by multiplexes is estimated to be a whopping INR 12. Not only the producers. The multiplexes steady proliferation in the metropolises and simultaneous penetration into some smaller cities and towns testifies to its increasing popularity. non-orthodox Bollywood films and lowbudget movies who were on the verge of dying have been given new lease of life after the Multiplex boom. a single screen in a multiplex seats a far smaller audience. and sustained by the retail boom unleashed by the economic liberalization policy of 1991. coinciding with the rise of disposable incomes in the hands of the urban Indian family. two with a capacity of over 300 seats and the others with 150 seats. Anupam PVR. was converted to four screens. Period! Art films.000 Cr. India‘s first multiplex situated in Delhi. the Indian multiplex site sports all the features of an up-market turf. as at the end of calendar year 2009. Patterned along the shopping malls model of the multiplex as developed and prevalent in the West. As per . distributors and exhibitors are comfortable with such movies due to low cost but it has also scattered the options to audience. Multiplexes has given options to audience. While the capacity at a single screen cinema is usually in the region of 850 to 1000 seats. because when a cinema is converted from one to multiple screens the seats get divided among them. though not equally.

• Tax Exemptions. at the end of the year 2011. The cost for an exhibitor includes: • Distributors Share % • F & B Cost. • Overheads. The exhibitor of a multiplex have certain revenues and cost associated. • Entertainment Tax. What are the characteristics which drive the market of Multiplexes in India? The following are some of them: • Favorable Demographics. Some of them are: .84 study conducted by PWC the revenue is forecasted at INR 17. • Rising Income levels. • Convenience Fees. • Advertising Revenue. • Personal Costs.000 Cr. • Improving supply of infrastructure and retail industry. • F & B (Food and Beverage) Sales. • Parking Charges. • Management Fees. As in case of any business there are certain threats associated with Multiplex business in India. • Rent / Revenue Share. • Growth in film industry. The revenue for an exhibitor are: • Ticket Sales. • Willingness of people to spent on recreation.

400 in 2013. – Source: FICCI-KPMG M & E industry report 2009. KPMG Analysis Some additional statistics of Indian Film Industry business in India â€― • 1000 movies produced annually over the last 4 years (US $ 2. In addition the unorganized methods of financing made the investors pay high rate of interest. helping curb piracy and increasing revenues for Producers • Corporatization and Industry status augmenting financing • Hollywood Studios partnering with Indian companies and movie makers Though India produces the largest number of films in the year (annually more than 1. • Television. Inspite of being 90 years old industry.000). it accounts for only 1% of the global film industry revenues.4 Billion in 2008) • Revenues dominated by Domestic Box Office at 75%. Only recently the industry have got access to . unlike Hollywood at 11% • Home Video Revenue currently at 8% expected to reach almost 20% by 2013 • Overseas Revenues are rapidly growing at 21% due to increasing popularity of Indian Movies abroad • Digital Cinema enabling increased reach. The number of mulitplexes in India currently stand at 850 which is expected to reach 1. • Piracy.85 • Alternative modes of entertainment. • Uncertainty over entertainment tax. the Indian Film Industry was accorded Industry status only in 2000.

if a common middle class family comprising a husband. wife and two kids thinks of venturing out into a multiplex on a Saturday evening. the greater the thrill is an old saying. Given the prevailing demand-supply dynamics. but The bigger the mod. On the other hand. exhibitors. broadcasters and music companies. With vertical integration taking place between producers. With the boom and trend in multiplex in India one question which arise is whether single-screens are going to die? The perfect answer to this will be a big NO. This fact provides for ample testimony to the increasing prosperity as well as Indian consumers willingness to pay for superior-quality entertainment. The analysis shows that more than 70% of people prefer going to multiplex than a single-screen. Corporatization is taking shape in the Indian Film Industry.86 organized finance. the idea does not seems to pleasing. it shows that the expenditure on a movie always been a question. In a country like India where people still feel and believe that a movie needs to have PAISA VASOOL• value. people are queuing up at multiplexes which sells tickets at almost 5 times the prices prevailing in single-screen theaters at metropolis and tier 2 cities. distributors. At a time when single-screen theaters are dying due to lack of footfalls. if you count the cost! . one can believe that the sector offers high visibility for steady cash flows. Multiplexes offering tickets at around 150 bucks cannot call for large chunk of audience on account of high prices.

87 Fact remains that still consumers are ready to spend more as the quality of viewing is much improved compared to a single-screen. the trend which is rising as time goes. . So. don‘t be surprised if you see a single-screen nearby getting converted into 2-3 screens multiplex. The new phenomenon which is gathering pace in and around cities and towns is Multiplexing of single-screens. The trend which one can see will eventually make single-screens a rare species in India.

the film sector is poised to record an annual growth rate of 13 per cent to Rs 17. unorganised trade practices and rampant piracy. The changes in the way Indian films are now produced and marketed have not only .000 movies a year. have ensured that the industry is barely one-tenth of the US filmed entertainment market. increasing collections at theatres overseas and the emergence of new revenue streams beyond the box office has helped the Indian film industry log an impressive growth rate. India is the largest producer of films in the world. corporate houses. Banks. filmmakers and artistes never had it so good.600 crore through 2012. Problems of low movie ticket prices. however. With projections like that. which is estimated at $35 billion. higher spends on entertainment. internationally renowned production studios and even affluent investors are readily opening their chequebooks to fund the production of Indian movies.88 CHAPTER 11 BANKING INVOLVED AND CORPORATISATION OF FILMS The business of Bollywood is getting so hot that almost everyone wants to play the leading role. But the mushrooming of multiplexes. Scriptwriters. According to the PricewaterhouseCoopers (PWC) Report on the Indian Entertainment and Media Industry 2008. it is no wonder that investors have begun to smell the money that can be generated from this business. But those unfamiliar with Indian films might be wondering: what‘s all the song and dance about? Releasing more than 1.

IDBI is one of the largest players in this segment. There are now fewer instances of production delays or abandoned projects. said the bank had had a reasonably good experience lending to the film industry. although loans are available only to films that can generate an international revenue stream. he adds. there are companies such as Infinity Film Completion Services. that guarantee completion of films to financiers. John Matthew. but has also altered investors perception of the film business. BANKING INVOLVED IN FILM MAKING In fact. Besides. not just for filmed entertainment but also for television. Our NPA (non-performing assets) has been just Rs 10 lakhs. in recent years.89 made the business a more profitable one. have been extending support to the Indian film industry. Banks. RBI norms cap the extent of exposure to the sector to 5 per cent and also prescribe stringent rules for lending. . too. EXIM Bank has extended loans worth Rs 300 crore to the film sector. which has traditionally been viewed as extremely risky. Finance has been extended based on the rights of the film. thanks to corporatisation of films. Only producers with a track record of more than five years in the field typically get access to such lending. sponsored by GIC (General Insurance Corporation of India). EXIM Bank. EXIM Bank. Chief General Manager. YES Bank has structured products for content acquisition. the film industry has managed to evince interest from the most conservative of lenders. Speaking at the FICCI Frames 2008 media convention. Repayment of finance is done prior to the release of the film. is a big player. So the exposure is only towards completion of the film. which has brought more discipline to the industry.

One would merely finance a film and offer investors a return of 12-14 per cent. the payoffs from those that are successful can be huge. The filmmaker too will have a stake in the SPV. highlighting the risk associated with film investing. Saminathan. Chairman and Managing Director. The revenues from the film will flow directly into the SPV and will be re-distributed according to the ownership pattern. We are giving investors with a high risk appetite an opportunity to take exposure to a different asset class. a producer can recover his costs several times over. Vistaar Religare Film Fund. meaning that it will undertake the entire risk of film production and therefore offer investors potentially higher returns. All one has to do is invest in a film fund. S. Pyramid Saimira plans to launch two such funds. then returns from the business have to be as high as any other risky asset. a new asset But returns from lending do not compare to the potential returns that can be earned through equity funding. If films are a risky business.90 The situation is now a far cry from yesteryear when filmmakers were dependent on independent financiers who lent at 25-30 per cent interest. But one does not have to be a Yash Chopra to get a piece of this business. Pyramid Saimira. The fund would set up special purpose vehicles (SPVs) to fund each film project. say. a venture capital fund recently set up to fund films. The other would be a pure risk fund. Investing in films is like investing in a junk bond. lending against films is certainly more lucrative. with interest rates at about 12-14 per cent. says P. After all. As for banks. While not all films are successful. Managing Director. Film funds. These funds mobilise money to invest in movie productions. . equity says Sheetal Talwar. if a film is a success.

capitalising well on the trend of entertainment channels using movies to capture eyeballs. more such corporates are entering the film industry. Listed players such as UTV. these companies have even easier access to funding and are now able to flex their muscle to get the maximum out of sale of distribution rights. We provide support from the creative. says Siddhart Roy Kapoor. .91 The Mahindra & Mahindra group also plans to launch a film fund with an initial corpus of $50 million to invest in the groups film business and other media initiatives. corporates have changed the dynamics of the business. CEO. Television Eighteen (Indian Film Company). commercial and operational perspective. home video. music and television satellite rights. Indian Film Company (TV Eighteen group) recently made the industry sit up and take notice when it syndicated the rights of its film Jab We Met to four channels for a reported sum of Rs 22 crore. which has more than a dozen movies lined up for the year. As listed entities. where the box office accounts for 75 per cent of the revenues. Much as the artistes and old hands in the industry hate to admit it. compared to about 40 per cent in Hollywood. Viewing of films on other platforms such as home entertainment and Internet is untapped in India. CORPORATISATION OF FILMS With emerging revenue streams making film production viable. UTV Motion Pictures. Corporates go beyond just funding production. Adlabs and Pyramid Saimira are already present in the production business in a big way.

says Kapoor of UTV Motion Pictures. Life in a Metro. Where’s the content? Between banks. and Rang De Basanti.92 The corporatisation of the film industry has also attracted FDI into the film industry. however. at least 10 are ones that do not have top-bidding stars playing the lead role. which was led by Aamir Khan but was different from the usual formula films. which did not have the usual crowd-pulling stars. the strength of the films message and the vision of the filmmaker will be the main criteria for funding a film. too. international strategic partners and public money. Corporates. there is no dearth of funding options for the film industry. Kapoor says that UTV has backed films such as Khosla Ka Ghosla. adding that the script. Walt Disney has tied up with Yash Raj Films for the production of three animation movies. This raises the immediate question: Is there too much money chasing too few films? Corporates are chasing the same star-led scripts. International co-productions with the likes of 20th Century Fox and Warner Bros are on the rise. Our fund will be star-agnostic. Flush with money. film funds. which was a debut for director Dibakar Banerjee. producers may now be more willing to experiment and the public may finally get to see something different from the usual Indian masala movies. appear willing to give new filmmakers a chance and deny the allegation that they favour only star-led scripts. Out of the 20 movies we have on our plate.he says. says Talwar of Vistaar Religare. Sony Pictures released its first Indian production Saawariya in 2007. .

Make a portfolio of films across genres. .93 We are handling public money. We need to have a balanced approach to filmmaking. says Pyramid Saminathan. The show goes on.

The major milestones in bollywood business in our study is the release of “Hum Apke Hain Kaun” and upcoming of multiplexes . .With the advancement in information technology bollywood movies are able to obtain considerable capital even before the release through sale of satellite .94 ANALYSIS CHAPTER In the span of sixty years bollywood has firmly established and expanded entertainment business in india.music and other rights.

apart from the common notion that they are rip-offs of Hollywood movies. it would be no surprise that more awardwinning films will soon come to Bollywood‟s way. the quantity and quality of the films have significantly improved over the years. At the rate that Bollywood films are being produced and developing.95 CONCLUSION AND FINDINGS The Bollywood industry has come a long way since its initial development in the early 1900s. it is through this feature that Bollywood films have managed to carve out an identity of its own. With the development of technology. Modernization and globalization have also played a part in shaping Bollywood films into what they are today. we have noticed that the feature of song and dance sequences never seems to cease. . And in fact. And it is also this distinctive feature that has also contributed to the increasing international viewership of Bollywood films. Although many features in the films have changed with time to sustain and increase its mass appeal.

3. playback media and the informal economy.imdb.com/gcse/Blockbuster/MovieMarketing. Nationalism and post colonialism in Indian science fiction: Bollywood‟s Koi…Mil Gaya (2003).com/press/pdf/22 March 2005 .kpmg. 30(5). & Langer. Media.pdf http://www.Keller.Athique. New Cinemas: Journal of Contemporary Film. D. A. The global dynamics of Indian media piracy: export markets. Culture and Society. Reading ‘Bollywood’: The Young Audience and Hindi Films. (2008). 217-229.h.com/cgi-bin/gt/tpl. 699-717.movieindustrymarketing.content=18 http://www.Banaji.html http://www. J.96 BIBLIOGRAPHY Acknowledgements: Marketing Management : Kotler.mediaknowall. Websites: http://in. S. (2006).CII-KPMG Entt Report. 5.com/ Book References: 1. Interview with Mr A K Pankaj: Film Distributor and owner of a weekly Film Newspaper.Alessio. New York: . (2007).Jha. 2.Koshy.

(2007). (2003). 100 Bolywood Films. London: British Film Institute. 11. 12.Kripalani. (2002).Jaikumar.Minocha. 5. (2005). P. (2006).. 136. (2003). (1998). W. K. M.Dissanayake. 345-366.97 Palgrave Macmillan. Gloucestershire: Tempus Publishing Limited. New York: Warner Books. C. 52-54. M.Dwyer. S. 4. 6.Chopra.Boltin. & Curtin.Chakravarty. (2006). & Stonehouse. Rethinking Third Cinema (pp. 13. National identity in Indian Popular Cinema 19471987.. The “learning trap”: a Bollywood frame for strategic learning. 8. Rethinking Indian popular cinema: towards newer frames of understanding. New Delhi: Oxford University Press. (2006). (2006). In A. “Made in India” in between music television and patriarchy. S. A. Management Decision. North Carolina: Duke University Press. King of Bollywood Shah Rukh Khan and The Seductive World of Indian Cinema.).Bose. 202-223). 7. S. 44. Metro Magazine. New York: Routledge. 10. 198-215. Dissanayake (Ed. 3. 1344-1362.Kumar. Trendsetting and product placement in Bollywood film: Consumerism through consumption. New Cinemas: Journal of Contemporary Film. R. Cinema at The End Of The Empire. S. Saathiya: South Asian cinema otherwise known as „Bollywood‟. 9. Bollywood: A History. 4. Guneratne & W. G. . Television and New Media.

L. Culture and Global Change (pp. 15. W.Srinivas. 155-173. 17. (1999). 260-6. Gazette: The International Journal For Communication Studies. 18. Bollywood versus Hollywood: Battle of the Dream Factories. India. 16. (2002). The active audience: spectatorship.Mohamed. 323-342. New York: Routledge. K. To Be or Not To Be Amitabh Bachchan.Tyrrell. H. Media.Scrase. Television. India: Saraswati Creations. (2002). (2006). social relations and the experience of cinema in India. Bollywood Babylon: Interviews with Shyam Benegal. in Tracey Stellon and Tim Allen (Ed.Van Der Heide. Culture and Society. T. New York: Berg. 272-3). 64(4). 24I. . the middle classes and the transformation of cultural identities in West Bengal.98 14. J.). Mumbai. (2002).

.................... TOP GROSSNG MOVIES................... E-TAX ON BOLLYWOOD MOVIES.......33 4..................32 3.......36 .......99 LIST OF TABLES 1............ WEEKLY SHARE OF MULTIPLEXES..............41 5.30 2............ WEEKLY SHARE OF DISTRIBIUTERS.................. TERRITORY WISE BUSINESS WEIGHTAGE.. MAJOR CIRCUITS IN INDIA................................41 6.........

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