MANAGERIAL COMMUNICATION

II

WRITTEN CASE ANALYSIS

Can Bollywood Go Global?

SITUATION ANALYSIS

CASE FACTS

INFERENCES

The Indian film industry considered itself to be

The large number of films did not translate into equally large

the largest film industry in the world. In 2011,

number in terms of revenue. The Indian film industry

India produced a total of 1255 films out of a

generated only $1.47 billion in revenues in 2011.Two factors

world total of 6573.

contributed to low revenue: low ticket prices in domestic

Indian market and rampant piracy

In the 21st century, commercial mass movies

The variety of films made in India reflected the changing

that boasted big budgets, picturesque foreign

social and economic conditions in the country

locales, ornate song dance sequences and

larger-than-life emotions and off-center
class films that were made on smaller
budgets with lesser-known actors and
contemporary subject matter.
With the Indian middle-class demanding better

This would result in declining popularity of culturally

special effects and contemporary subjects as part

charged Indian films.

of their cinematic experience, Western,

especially Hollywood, films gained traction in
India.

The perceived financial potential of the Indian

The liberalization of Indian economy has opened the

film industry attracted investors once

floodgates of tax concessions and investments from banks,

deregulation occurred. In 2001, the IDBI bank

foreign production houses, and other legal financial

set up the countrys first film fund that was

institutions.Also, abundant funds reduced dependence on

worth over $25 million by 2004.

black money.

PROBLEM IDENTIFICATION

What are factors that will assist the Indian film industry to address the issue of low revenue compared to

Hollywood?
What industry structure would be appropriate to make Bollywood go global?
What content genre can cater to the global as well as the domestic audience?
How can the factors driving globalization be more enriched?
How can Piracy be prevented?
How can the impact of Hollywood be lessened in Indian market?

STATEMENT OF PURPOSE

To find solution of the problems restricting the globalization of Bollywood (long term perspectives) and prevent
piracy and the domination of Hollywood over Bollywood amongst the domestic audience (short term
perspectives).

CRITERIA

CRITERIA 1: Revenue generation

Option selected should be such that it would enhance the revenue generating capabilities of Indian films.
Presently, the revenue generated by Indian movies is considerably low even though a large number of Indian
films are produces each year.

CRITERIA 2: Globalization of Bolllywood.

Indian cinema had a predominately formulaic tradition. The option should be focusing to genres for different
segment of audience. For example, Masala filmmakers began making films that catered to the large NonResident Indian (NRI) audiences.

OPTION

OPTION 1: Preventing Piracy

Introduction of centralized government body to regulate industry matters could mitigate the problems of
fighting against piracy.

OPTION 2: Producing different genre of movies for target audience to go global

The distinct nature between taste of urban and rural audience make it essential for the Indian film industry to
concentrate on different genre catering to the needs of such audience. Also, the traditional style of
melodramatic, long movies wont work for international audience and need a considerable revamp.

EVALUATION OF OPTIONS AGAINST

ALTERNATIVES
OPTIONS

CRITERIA

PROS

CONS

In 2005, it is

Setting regulatory bodies to stop

estimated that pirated

piracy may require additional costs

films caused the

and efforts

Indian film industry

to lose approximately
50 % of revenue each
year. This will
enhance the revenue

generation capability
of Indian film
industry

Different genre of

Variety of movie genre to go global

movies will help to

may disappoint a large proportion of

generate revenue

domestic audience who still prefer to

from different

watch traditional Indian movies.

segment of viewers.
1

Preventing piracy
will boost
filmmakers return on
investment and in
turn increase their
potential to produce
big budget films.

Better and unique

Identification of the genre that will

genre of movies will

appeal the target audience is a

definitely make

laborious process.

Bollywood go global

CONCLUSIONS AND RECOMMENDATIONS

From the aforementioned table, preventing piracy will be the better course of option in the given circumstances
since Indian film industry is incurring huge losses as a consequence of piracy. In fact, Bollywood growing

popularity abroad had caused an increase in piracy; bootleg videos and DVDs of Indian films were widely
available in the U.S., U.K., and Pakistan. Therefore, restrictions on piracy will both enable better revenue
generation and globalization for Bollywood.

ACTION PLAN

Instead of multiple government and regulatory bodies such as the Ministry of Information and Broadcasting (for
film censorship), the Ministry of Finance (for taxation issues), and the Ministry of Human Resources
Development (for copyright violation issues), there should be centralized regulatory body and the body should
formulate stricter regulations for activities related to piracy.