emerging technologies such as broadband, Direct-To-Home (DTH), Direct-To-Theatre (DTT), Internet Protocol
Television (IPTV) and digitalization will bring about more growth.

One of the major policy initiatives has been the Government of India granting "industry" status to the
entertainment sector in India including the film sector in 2001. This allows the sector to access institutional finance
and clean credit for new projects. Industrial Development Bank of India (IDBI) was the first to enter with a funding
of Rs. 100 million with 16% p.a. interest rate. However, banking and institutional finance has not been forthcoming
to the film industry even today.

PVR Limited was one of the pioneers of this revolution in India in 1997, with the launch of the concept "multiple
choice of movies under one roof". This furthered by interior decor of international standard and state-of-the-art
sound and technology witnessed new revenues at the box office.

This segment has seen an influx of major private players like Adlabs, Inox, E-City Entertainment, Wave Cinemas
etc. In 2005-06, Shringar Cinemas, PVR Limited and Inox went public and together, a sum of Rs. 4,144.45 million
was raised during this period. Adlabs foray into the entire value chain of the film industry was a significant
development in the Indian entertainment and media industry.

The biggest crisis plaguing the industry is the distortionary rate of entertainment tax within states in India. For
instance, in Andhra Pradesh and Tamil Nadu, the tax rate is low and hence these states have witnessed huge
investments in cinema infrastructure. This has however not been the case with the rest of the states in India.
Therefore, to avoid market fragmentation and distortions, a uniform and rational tax structure is required for the
growth of the film industry.

 interest in industry in India from international film companies and studios. For instance, Warner Bros. Entered into
an agreement with Ramesh sippy, film producer, to fund three of his films: Saawaryia was co-produced
internationally with SPE Films India Pvt. Ltd. Important co-production ventures include Percept Picture Company
and Michael Douglas ' production company. Further Films and Sahara One tied-up with a Hollywood producer,
Donald Rosenfeld. Adlabs tied-up with Hyperion, a Hollywood studio for an Indian film. iDream Productions
launched their operations in U.K. with three films already being made. The year 2008 saw the biggest deal between
Bollywood and Hollywood, with Anil Ambani signing the deal with Steven Spielberg's DreamWorks for stabilizing a
production studio in Los Angeles. The studio intends to produce six films in a year.

"TAAL" was the first film to be insured in India in 1998. Traditionally, film insurance covered only property damage
and accidents, but today, the coverage of the "package insurance policy" has been expanded to include insurance
cover for the cast of the film, any physical loss or damage to the negative or videotape, material or facilities
insurance, technical equipment insurance, props, sets and wardrobe insurance, production office content insurance,
money insurance, travel insurance, public liability insurance. 

Apart from the availability of pirated copies of latest films, the dismal condition of theatres is the main reason for
low occupancy levels in theatres in India. Therefore, the mantra adopted by the Indian film industry was "going
digital". Digital cinema enables delivery of films through hard disks or electronic transmission, i.e. satellite.
Further, digital prints apart from being cheaper are also less prone to duplication.

Hence, to take advantage of this, it is important to implement the plan of digital cinema across India. Hence, the
untapped business opportunity for digital cinema is vast. Traditionally, at the time of release, the film is used to
first get released in "A" class cities and thereafter circulation used to take place in "B" and "C" class cities. In this
interlude, pirated copies were obtained to cater to audiences in "B" and "C" class cities. With wide spread
digitalization, a movie can be released simultaneously across all cities; it also helps in limiting piracy.

Music download, movie download, video-on demand etc are gaining in popularity. (mobile & internet)

 Marketing techniques also surfaced with the maturing of the film industry. These included sale of mobile rights,
ringtones, movie wallpapers, movie blogs, websites etc.