WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT &

RESEARCH

Integrated and Marketing Communication Project

ON

How to Reach 1000 crore Mark in Bollywood?

BY
NIRAV VORA
PGDM 2013 15 TRIMESTER IV
SPECIALISATION: MARKETING

ROLL NO: 73

1,000 crore Bollywood Blockbuster

The Holy Grail of Bollywood: Dream or Reality?
The year was 1943, the movie Kismet, the hero Ashok Kumar, the box office earning Rs. 1 crore
and India had its first all time blockbuster film. So what if the Indian Film Industry was born three decades
ago in 1913, it was at this time that it had come into maturity. Kismet was followed by many more
Boxoffice Blockbusters including Mother India (1957), Mughal-e-Azam (1960) and Sholay (1975). Postliberalisation, Hum Aapke Hain Kaun (1994) changed film business forever to become one of the biggest
blockbusters of the modern era. But it was Gajini (2008) that redefined Hindi Film business by becoming
the first Rs.100 crore Hindi film i.e. a film with Net Collection (after deducting entertainment tax) of Rs.100
cr from Indian Boxoffice. Since then, almost 20 Hindi films are a part of the exclusive 100-crore club. But
one film that stands out amongst all is 3 Idiots (2009) which is the only film to earn Rs. 200 cr+ Net from
Indian Boxoffice and Rs.100 cr+ from overseas market. Only time can tell which movie will be able to
break the record set by 3 Idiots (Total Worldwide Boxoffice Collection: Rs.325 cr plus!)
The 100-cr club: not exclusive anymore
From film critics to paanwalas and from stars to spotboys, everyone talks about how and how soon a bigbudget film will be able to cross the Rs. 100 cr mark. From one film each in 2008 & 2009 to two in 2010 to
five in 2011 to nine in 2012, and two films in 2013 (till date), the Bollywoods 100-cr Club is slowly losing
its exclusivity over the last few years. It is clearly the result of a paradigm shift in the business of
Bollywood. There are four key contributing factors for this shift:
Multiplex Mania: From the first multiplex by PVR in 1997 to almost 1,400 multiplex screens in 2013, the
multiplexes transformed the film business in India. Though they hardly account to 12% of total 12,000+
screens in India, they contribute almost 70% of a films box-office collection. By offering a better film
viewing experience, mutliplexes have brought the film lovers back to the silver screens.
More Prints: Mughal-e-Azam was released in 150 theatres across India. Thanks to the advent of digital
technology, 3 Idiots released with 1,000 prints and Ek Tha Tiger (2012) with 3,400 prints in India and
500-600 prints overseas, which explains how Ek Tha Tiger took just 6 days to cross Rs. 100 cr mark!
High Ticket Prices: When Mughal-e-Azam released in 1960, Maratha Mandir, a leading theatre in
Mumbai, charged Rs.1.60 for the balcony while the average cost of a ticket then was around 50 paise.
When Hum Aapke Hain Kaun was released in 1994, it forced theatre owners to upgrade their systems
and to increase ticket prices. Today the average ticket price in multiplexes is Rs.140-150, compared to
Rs.60-65 in single-screen theatres. And on weekends, leading multiplex chains charge almost Rs.300350 for a new release. For 3D films, the rate is even higher.
Longer Weekends: Friday-release has been replaced by Wednesday- or Thursday-release as many big
budget films take advantage of long weekends because of festivals or holidays. In fact, Ek Tha
Tiger released on a Tuesday and benefited hugely because of a six-day weekend! Most of the 100-cr
films enjoyed this kind of longer weekends. Though a longer weekend is no guarantee for a films

success, it certainly provides a head start.

Importance of Overseas Boxoffice Collection

While domestic Boxoffice collection may be the only criteria to be eligible for 100-cr club, the importance
of overseas market cannot be overlooked. And Shahrukh Khan starring in 7 out of the top 10 highest
grossing Bollywood movies in the overseas market, clearly rules the overseas market, followed by Aamir
Khan, Hritik Roshan and now Ranbir Kapoor. US, UK and UAE are key markets for Hindi films, besides
South-east Asia and rest of the world where South-Indian Superstars Rajnikant and Kamal Hassan enjoy
immense popularity.
From Dil Se (1998), which was the 1st Hindi Film to be in the top 10 UK Boxoffice charts, to Jab Tak Hai
Jaan, the contribution of overseas Boxoffice collection has been steadily increasing. 3 Idiots earned $25
mn from overseas market which is more than 30% of films total box office collection. Jab Tak Hai
Jaanmade almost equal amount from domestic and overseas market. And yet the overseas market is
relatively untapped for Bollywood Blockbusters.
Hollywood blockbuster, Avatar - the highest grossing movie in the history of world cinema, earned more
than $2 bn from ticket sales out of which just 30% ($600mn) came from US and rest 70% came from nonUS markets. How was this made possible? Internationally, Avatar opened on a total of 14,604 screens in
106 territories! Bollywood has a long way to go before it can match the marketing muscles of Hollywood
studios, but Bollywood can certainly aim to cross the $100 mn mark from overseas market in the
foreseeable future.

1000 Cr Blockbuster The Holy Grail of Bollywood

The writing on the wall is clear. 100 crore clubs dont excite anyone anymore. If we combine Indian and
overseas Boxoffice collections, we observe that a lot of films have managed to cross Rs.200 cr mark and
very soon we will certainly see a film crossing the Rs.500 cr mark at worldwide Boxoffice collection. So,
why not set a new benchmark for Bollywood Blockbusters. Why not think of the unthinkable but not the
improbable. How about a 1000-cr Bollywood Blockbuster which will change the business of Bollywood
forever!
Although it may seem too ambitious to aim for a Rs.1,000 cr Bollywood Blockbuster, it may happen in the
near future. There are 3 supporting theories:
Theory 1: With 1,000 prints, 3 Idiots managed to cross Rs.200 cr mark solely from Indian Boxoffice.
Thus, with 3000+ prints at the time of release as well as increased ticket rates; we can very well expect a
good film with similar audience appeal to cross the Rs.300 cr mark at the Indian Boxoffice with a
successful run of 4 to 5 weeks.
Theory 2: The Indian Film industry is obsessed with Boxoffice collection & now with the 100-cr club. But
we hardly ever track audience footfalls. Titanic was watched by approximately 12 cr people, compared to
half that number who watched Avatar in theatres. It is estimated that Mughal-E-Azam and Sholay were
viewed in theatre by 3-cr plus film lovers at the time when Indian population was just 43 cr and 60 cr
respectively which means that almost 5% of the Indian population watched Sholay in theatres. And if we
can manage to come close to that number in todays time, then just do the numbers!

Theory 3: The overseas market plays a crucial role for a lot of Bollywood films. Given the current rupee
depreciation, the net collection from overseas market is bound to increase substantially. We already have
a Bollywood movie crossing $25mn mark in the overseas market. If we can manage to correctly capture
US, UK, China and other key overseas market, then there is a high probability of crossing $100mn+ mark
from overseas market.
So, while on paper, it may look possible to work out a plan to achieve Rs.1,000 cr magic mark, business
of Bollywood does not follow pure mathematics. What we need now is a talented and committed team
who, besides getting the mathematics right, can also strike the right balance between the art and science
of film making to deliver a Mega-Blockbuster of all times. Though there cant be any magic formula for
success in Bollywood, the following ingredients are a must to deliver a 1,000-cr Blockbuster:
Ingredient 1 Indian Story with Global Appeal: Story was, is and will remain the most crucial element for
the global success of any film. The storyline has to have the perfect mix of emotions that appeal to Indian
heartland and at the same time manages to strike the right chord with global audiences. And we can
explore 3 genres that may appeal to both the audiences: 1) a period film in the Indian set up, 2) a sci-fi
film probably with characters inspired from Indian mythology, and 3) a save-the-world-from-baddies film
based in India. And if the storyline gives opportunity to have 3D version, then it will certainly boost the
Boxoffice collection.
Ingredient 2 Stellar Indian Superstar cast: Casting will play a super role in the success of the movie. A
superstar is a must for a super-film of this size and scale. Shah Rukh Khan, Aamir Khan and Hritik
Roshan may provide the needed star power to this venture, though Salman Khan and Ranbir Kapoor
cant be ruled out completely. The film will also need stellar supporting cast with the likes of Amitabh
Bachchan, Aishwariya Rai Bachchan, Om Puri, Anupam Kher, Anil Kapoor , etc. may also help to reach
out to wider audiences. A vital role in the film by Rajnikant or Kamal Hassan can provide the necessary
boost, given their huge overseas fan base.
Ingredient 3 Presence of an International Star: An all-Indian star cast will not be able to break into the
lucrative overseas market. Butan international star will. Though an A-lister Hollywood star may not be
financially viable, but an important part (equal to the main lead) in the film must be played by a popular
International star. If a popular male star is too expensive, then a top-notch actress can add a lot of value
to the film, provided her role is more than just singing and dancing.
Ingredient 4 Different versions for different audiences: The film should be written and shot in a way that
we can have two versions of it. . One version for Indian audiences (150 min) with usual song and dance
routine and second version for the international audiences (100-120 mins) without compromising on the
essence of the film with minimal or none of the Bollywood routines.

Ingredient 5 - Money: An equally important ingredient in this mix is money. Once Bollywood manages to
break into the overseas market like Chinese films, we may not always need big budget releases for global
audience., But the first Rs.1,000 cr Bollywood film may require substantial investment. We have seen
films like Ra One with budget of around Rs.150 cr and Rajnikant starred Robot spent almost Rs.200 cr
(including marketing expenses). A truly international film shot mostly in India can be made with the budget
of Rs.100 cr. Now lets add around $15 mn for an international star and $25 mn for marketing and
promotions. (Avatar spent $150mn to market the movie!). Bollywood filmmakers have their own ways of
cost optimization, but we may still need a budget of around Rs.300-350 cr to make a Bollywood film for

the international market.

These are no secret ingredients. What we need is a Bollywood Magician who can combine them to create
magic. The only question remains that in the process of making a truly global Bollywood film, will it remain
a Bollywood movie with an international star or will it become a Hollywood movie with Bollywood tadka?
Who cares as long as we have a Rs.1000 cr Bollywood Blockbuster!!!

Multiplexes in India
India today is home to 900 multiplex screens across the country. Compare this to
the over 15,000 screens in the US and you understand just how abysmal the
number of 0.5 multiplex screens to each million of population is

Top 10 Film Countries by Box Office

Despite the recession there was no stopping the global film industry in 2012 as box
office take grew 6% to reach a record $34.7bn. South Africa for example has around
700 screens mainly located in areas that make it difficult for the majority black
population to access, add to the fact that not enough films are being made to cater
for that audience.
10. Brazil $800m
Brazil is considered to have the most accessible film industry amongst the so-called
high-growth emerging BRIC nations (Brazil, Russia, India, and China).
9. Spain $900m
Plagued by the economic woes of a shrinking market, rampant piracy, subsidy cuts,
Spains film industry is down on the list.
8. Italy $1.01bn
Italy is another Country whose film sector is being weighed down in recent times by
the impact of the Euro Zone economic crisis.
7. Russia $1.2bn
With only a fraction of the United States screens, Russia is the seventh-largest film
market by Box office take and is making steady progress.

6. Germany $1.35bn
Despite being in the Euro Zone, 2012 saw Germany generate their highest ever Box
office revenues increasing by 7.8%, with 135.1 million Cinema tickets sold
representing an increase of 4.2%.
5. India $1.4bn
The Indian film industry has been a powerhouse for many years now, making the
largest number of films in the world, buying the highest number of tickets and
having the second largest screen count. However, they only come in at number 5 in
box-office revenues mainly because on average their home market has the amongst
the lowest ticket prices in the world.
4. France & UK $1.7bn
Coming in joint fourth France and the UKs appetite for films shows no signs of
declining, as both still maintain very strong cinema going cultures.
3. Japan $2.4bn
Dumped off second spot, Japan must be resigned to the inevitable position of
playing second fiddle to China from now on in the film industry.
2. China $2.7bn
As with everything about China these days, they have become the worlds secondbiggest movie market, taking over from Japan.
1. North American $10.8bn.
The USA is still far ahead of any other Country for now and in no danger of being
over taken but they will surely be looking over their shoulder as China continues its
march forwards world domination.
South Africa & Nigeria
South Africa and Nigeria are two Countries that really should be in the Top Ten in
Box office take but because both industries have serious structural problems that
dream is unattainable for now.
Nigeria is humbled by this list, falling right back down to earth from the dizzying
heights of being the worlds second largest film industry by virtue of films produced
and getting onto this list will remain a pipe dream for Nigeria until the quality of the

films being produced improves and more Screens are made available for the close
to 170m population.