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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

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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.

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

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. .

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

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

Malaysia has become a popular destination for filming while Thailand is beginning to promote itself as a shooting destination for Hindi films. Influence beyond Its Borders The Hindi Cinema not only has an impact on its own country. Reportedly. was filmed in Singapore. Rakesh Roshan. and provided logistical support to the shooting of the film. it would 7 Kripalani. New Cinemas: Journal of Contemporary Film. 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. Young viewers in Singapore have reported the delight of being at the location where the film was shot. and retracing the steps of the hero along the bridge and down the boulevard. Bollywood films have managed to reach masses from other part of the globe (Tyrrell. Asian audiences. Other countries began to recognize the benefits on having the Bollywood movies filming their movies on their locations. but it has been influencing the countries that surround it. Due to globalization. (2006). one of the popular Bollywood movies filmed in 2006. Krrish7. it was announced that the Singapore Tourism Board (STB) had signed a deal with Indian film-maker. Not only is revenue to be earned from the shooting itself. mostly in the Asian continent. In July 2005. to shoot 60% of the film in Singapore. 198-215. Trendsetting and product placement in Bollywood film: Consumerism through consumption. . the film has been so popular with Asian audiences in its opening weeks that it outdid Superman at the box-office. C. but the revenue spinning potential from tourism is endless. featuring an Indian caped crusader played by Hrithik Roshan. 4.8 can see how the Bollywood film industry contributes substantially to the Gross Domestic Product (GDP) of India. Singapore has also become one of the few destinations that were chosen for onlocation filming. 1999).

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

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

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

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

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

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

Culture and Society. 24I. 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. depending on the demands from the script. 20 A setting can take on days to be created and built just for a few minutes of song and dance. (2002). filming takes place in Mumbai. Saathiya: South Asian cinema otherwise known as ‘Bollywood’. 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. Media. One characteristic of a Bollywood film is that most films are just like musicals. availability and preferences of the producers or directors. There is a minimum of six to eight songs in a Bollywood film. This term. typically. 2002).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. Metro Magazine. such as the father or son. The actors often take up familial roles. Bollywood film takes up about three to three and a half hours. fight and even do comical scenes in the film. This has become a 19 Boltin. The location of a Hindi film production may differ from one film to another. a seemingly inexorable combination of genres. K. 155-173. The active audience: spectatorship. Usually. Hence. (2003). 5254. with occasional shootings in foreign countries. 200319). . 136. originally coined by theorist Rosie Thomas. L. social relations and the experience of cinema in India. They would usually have to know how to dance. masal movies. narratives and points of view (Boltin. 20 Srinivas. However. 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.

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

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

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

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

In making a film. In A. 200231). 202-223). (2002). 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. L. in order to avoid chaos and fighting as shown in the movie (Dissanayake. Guneratne & W. Media. The active audience: spectatorship. like the untouchables. 155-173. Dissanayake (Ed. For example. if the viewer finds the song and dance sequences of the film boring. Rethinking Third Cinema (pp. in Amar Akhbar Anthony where the three siblings are separated and brought up by different family (Amar – a Hindu family. Culture and Society. 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. W.23 Furthermore. New York: Routledge. For example. Rethinking Indian popular cinema: towards newer frames of understanding.). It is also a common practice for the Indian audience to leave the theatre before the film has fully ended. other audiences will end up emphasizing the need to preserve the caste system which is an important aspect of the Hindu religion. the Indian audience may do selective viewing. without the rolling of the film credits (Srinivas. (2003). 200332). . certain social rules must be observed. For example. However. 32 Dissanayake. 24I. another important player of the Bollywood industry is the Board of Censor. the women they loved come from the same religious background as themselves. 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. social relations and the experience of cinema in India. They are not passive audiences but usually relate themselves to the actors and actresses in the films they are watching. they may leave the theatre and only come back when the scene has moved on. Akhbar – a Muslim family and Anthony – a Christian family). The audiences may watch the same movie but the meanings they give to the movie may differ. Lastly.

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

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

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

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

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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)

Exhibition: Multiplexes: With the rise of Urban/City Multiplexes bulk of the business comes from these Multiplexes only.5% in the third week and 30% in and after week 4.31 But a approximation can be made as follows : Lets look into the above in some detail. An additional 2. 5th June 2009. Producers/Distributors will get 50% of the nett collections from the multiplexes in the first week. 17. Cinemax and Fun) cross Rs.5 crore during the entire first run of the . 42. 37. Inox. 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 week 2. Big. Fame.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.

32 film. The reason Multiplexes want to keep more shares going into later weeks is because(and also in general). 1) The number of audience decreases as weeks go by but the cost of running the show remains same. a rebate of 2. if any film released with more than 500 prints collects a total of less than Rs. 10 crore across the multiplex properties owned and operated by the six national chains.5% for weeks 2 and 3 will be given to the chains by the producers/distributors concerned. Conversely. 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. 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): .

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. Independent Multiplexes : Now the Top 6 Plex chains of India give about 70% of the revenue of Total Plex business. The share system for single screens is little different from plexes. 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. 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. There are many Independent Multiplex spread all across the Nation who contribute the rest 30% of the revenue.33 Now the above is just an example. 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.

000 and the rent will be 20.40. The share % going the producer will be (4.5) = 3. The share % going the producer will be (7-1.000 rupees per day as its rent for running full shows of a movie.000 per day.34 fixed rate and the rest of the revenue (after subtracting the rent) goes directly to the producer.4)/7 = 80%. 2) Suppose movie has done 70% full week the nett revenue will be 7*100.10. Lets take a few examples here.40. The maximum revenue the movie can do with full capacity is say 100.9 ~ 71%.000(. The share % going the producer will be (3.9-1.000.000 and the rent will be 20. now by the end of the first week: 1) Suppose movie has done 100% full week the nett revenue will be 7*100.7) = 4.40. 3) Suppose movie has done 50% full week the nett revenue will be 7*100.000*7 = 1.4)/3.000 = 7.4)/4.000*7 = 1. The share % going the producer will be (2. .4)/2.000*7 = 1.3) = 2.000.000(0.000.40.5-1.000.5 = 60%.000 and the rent will be 20.000*7 = 1. Lets assume a given Single Screens charges 20.50.000 and the rent will be 20.90.00. 4) Suppose movie has done 30% full week the nett revenue will be 7*100. 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.1 = 33%.000(0.1-1.

The rest 45-50% of the nett is kept by the Multiplexes.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. it can go as high as 80% and go as low as 35% depending on how it has done there. 6 National Multiplex chains ~ 45-46% share. 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. But in general movies which do well in Single Screens get around 6065% share from the total net revenue. the screens of Bihar are the cheapest and the ones in the Delhi region are the costliest. The Independent Multiplexes across India ~ 50% share. TOP GROSSING MOVIES OF LAST TWO DECADES: .

000 85.44 64.00.000 123.00.00.000 52.00.000 25.00.000 18.000 16.000 29.00.00.50.00.000 48.00.00 62.41.00.00.00.000 28.000 19.000 29.25.00.00.000 20.64 .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 61.000 35.79.00.25.00.00.77 120.000 16.000 21.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 69.000 21.00.00.25.000 76.000 26.00.00.26 21.75.000 15.000 Adjusted Gross 22.000 13.00.50.00.000 30.00.000 14.50.00.25.00.54 83.00.50.75.00.40.00.50.00.75.00.00.000 22.00.00.77.00.000 25.000 14.000 21.00.000 16.000 30.25 71.000 10.00.00.000 26.50.78 74.50 66.00.00.00.25.00.00.25.00.00.03 207.000 17.00.000 18.000 14.50 68.11 117.000 35.00.95 67.000 15.00.000 30.00.00.000 106.00.25.000 30.00.00.00.000 45.75.50.56 71.25.00.00.00.00.50.000 12.50.00.00.25.000 29.00.33 73.33 71.50.33 73.00.00.50.69 71.000 10.46.00.00.000 23.18 60.00.000 21.00.00.000 12.00.00.50.00.000 25.000 9.00.000 61.000 267.00.50.50.25.00.000 16.00.50.00.000 16.00.25.000 20.33 149.00.000 28.50.000 17.72.00.00.000 28.00.000 309.00.000 28.00.50.000 26.000 27.00.00.00.00.000 17.000 17.78 182.00.44.000 48.00.00.000 Gross 18.

00.00.00.00.000 111.00.50.82.00.00.00.00.00.00.50.00.50.000 48.000 35.00.000 29.000 61.68 92.000 17.50.000 16.00.00.00.000 37.000 32.00.00.000 72.25.00.00.62.26 65.00.76.25.00.55.00.25.05.00.25.000 15.000 Blockbuster Hit Semi Hit Hit Super Hit Above Average Blockbuster Hit Average Super Hit Hit Hit Hit Super Hit Hit Blockbuster .20.37 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 8.000 46.00.000 43.00.00.000 112.000 84.00.000 42.25.50.52.00.000 29.000 75.25.50.000 74.000 130.000 40.75.000 32.00.000 24.000 28.000 122.000 78.75.50.00.000 103.000 38.00.00.00.000 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 47.00.40.00.70.000 33.00.000 28.00.00.000 43.00.000 67.00.000 42.63 75.000 22.75.000 24.000 31.00.00.00.00.00.00.00.10.00.75.000 50.00.00.50.00.00.00.000 76.000 79.09.00.00.75.00.00.000 58.00.50.00.00.76.00.00.000 107.00.00.00.00.00.00.75.000 69.00.50.00.42 19.00.69.000 100.000 21.000 33.000 33.000 93.00.46.000 53.00.05.000 35.47.25.09.000 82.000 29.61.50.000 77.00.25.000 130.00.08.00.95.78.00.75.00.000 9.000 40.000 146.50.00.00.000 36.00.000 18.00.00.000 286.00.75.00.00.000 50.00.000 54.000 97.000 20.00.000 20.00.00.000 22.25.000 172.00.00.00.00.25.00.00.000 68.00.41.00.000 37.000 61.000 74.00.00.000 74.000 18.00.00.000 138.000 47.000 39.00.000 32.75.00.95.00.000 80.000 19.

000 133.000 70.00.00.00.00.000 85.88.000 56.000 93.25.000 98.48.50.00.00.00.00.000 114.000 40.00.00.00.75.50.000 43.000 87.000 100.00.00.25.000 86.00.000 66.42.00.75.000 60.00.26.00.000 105.88.00.86.000 49.00.00.00.00.78.00.00.00.00.94.78.00.00.75.00.000 127.000 71.00.50.00.00.00.000 89.00.00.000 91.000 110.00.80.000 118.000 81.00.000 269.00.50.000 83.000 58.00.89. 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 69.00.00.50.000 61.90.000 155.000 95.00.00.70.00.000 62.40.000 72.75.00.84.48.000 55.000 91.00.58.50.00.00.00.00.000 71.000 63.000 82.09.00.000 67.48.01.00.00.000 124..00.00.000 90.00.67.000 76.14.000 44.02.50..000 60.000 52.14.000 61.00.19.00.75.78.00.000 77.00.00.50.77.00.00.000 66.00.00.00.74.000 68.00.75.00.69.22.000 68.00.00.00.000 128.000 93.70.00.00.000 117.00.00.000 50.000 59.000 79.00.00.00.50.00.50.00.25.25.000 82.75.000 41.14.00.000 202.000 75.000 81.00.000 79.000 83.000 69.000 94.00.000 62.00.00.00.000 51.75.00.37.000 47.00.00.00.000 51.000 269.00.00.50.57.000 71.00.000 61.000 76.75.000 72.000 97.000 45.000 66.00.42.000 84.25.00.75.41.92.00.00.00.000 82.38 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.50.00.00.000 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 .000 170.000 89.25.000 85.25.21.000 74.50.000 95.000 103.

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When the movie is sold to the distributer its generally sold from circuit to circuit. If the Distributer recovers his MG. Anything beyond the 25% is called Overflow which is to be shared 50:50 between the Distributer and the Producer. 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. So a 60% for Delhi represents that the trade expects Delhi to do 60% of the business done in Mumbai circuit . 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. its called Recovery. Here the Distributer keeps a certain % of the nett revenue as his share. 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. at varying costs depending the weightage of the area/territory.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.

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

Overall Overseas shares for movies are around 42-45% of the total Gross. Satellite: Satellite bid prices have been off the roof for most of their history. Most of the deals are done before the movie is released. 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.UAE and Australia as of now.The Major Markets are USA. The Overseas Numbers are always given in Gross rather than in Nett. that from UK around 35%. .UK. The Shares from USA are around the 50% mark.42 Overseas Theatrical Share: The Overseas Theatrical Market is also of very high importance.

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

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

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

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

Viacom and Fox are now investing in India. focus should be on building good content rather than to over expose it. Digital distribution of content on internet in India is less.• Further commenting on the varied Censorship Regulations of different countries and its impact on promotions Marcus commented. 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.six years. . 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. Currently I am more optimistic about the digital distribution in theatres.• Speaking on Digital Distribution of content Eros International UK executive vice president Marcus Stuart said. The Internet medium in India will change in the next five . The Eros website receives 65 per cent hits from the US.47 Muller also stressed on the importance of Film Festivals. Hollywood films are filled with a lot of arrogance. Film festivals should be supported if Indian films need wider recognition. For a country that produces 1000 films and 2000 documentaries and short films. New York City has 25 film festivals and India has only 13 film festivals. He said. 13 film festivals are too few to showcase them. destruction and aliens in it. On the other hand. Muller also commented on the importance of the Co-production of movies between India and companies abroad.• 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.

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

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

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

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

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

A: Gentry movies. Art movies . Entertainment movies. B: Mass movies Gentry movies are the ones which are made for the audience with special tastes. Movies for kids.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. young couples etc fall in this category. I. college students. 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. Mass movies are made for audience who are interested in pure entertainment value of the movie. rickshaw pullers etc. These movies appeal to a broad set of audience in the middle class and lower class of the society like the daily wage workers. II. These movies have done well recently due to the advent of multiplexes.

Attributes:  Patriotic songs  War setting  Terrorism  National flag  Army setting . 2. E. Border. Patriotic / war movies E. Entertainment movies: These are also called Mainstream Cinema or Commercial Cinema. Also called Masala films. Hero. Haqeeqat. Indian.54 I. 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. Action / Romantic movies. Rang de Basanti. Include Action movies and love stories. These can be further divided into following categories: 1.g. LOC. Sarfarosh.: DUS.g. potboilers. Deewar. Lakshya.

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

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

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

still we are taking a conservative approach as it will give a bigger number for India Footfall.565. Three Biggest Industries are: .(not the other way around).4 Average Ticket Price : $7.89 Total Footfalls : 1339 Million ~= 134 Crore India Footfall : Considering Hindi is first language of approx 40% of People in India.Even if the number is more than 40%. Population : USA : 307 Million + 33 Million(Canada) = 340 Million India : 1115 Million North America has 30% of the Population Compared to India. a calculation for Bollywood can be done and then converted to a All India Number. So.58 CHAPTER 8 ANOMALIES IN BOLLYWOOD With 30% the Population and One-Third the Movies. 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. USA Footfall : Year : 2010 Total Movies : 534 Total Gross in USD Millions : $10.USA has 2 times more footfalls than India. Bollywood can be approximated to have similar impact in Cinema of India as far as Money inflow is concerned.

Infact. USA has around 2000 Multiplexes and India has approx 850 Multiplexes and 11.59 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.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.5 crore. that 25 crore footfalls are only for Bollywood. The Most telling figures are how the biggest historical blockbusters of Modern India don‘t outnumber their counterparts in USA in terms of Footfalls. though most metros have reached saturation by now.4 = 62.5+ cr in BW or 6+ cr All India Titanic = 12.5 cr And its not like India lacks exhibition prowess. HAHK ~ 3.75 cr Avatar = 10+ cr The Dark Knight = 7.historically .5 cr in BW or 9 cr All India 3 Idiots = 2. so for All India they will be : 25/. 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). Even if we add 5 crore extra as error we get just about Half of USA Footfalls(134/2 = 67 crore).

6% of the total Indian population falls below the international poverty line of US$ 1.(As is the case in USA).6 a day in urban areas and 14.3 in rural areas). 41.2006 onwards has seen a better period relatively. in nominal terms 21. 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. Due to unparalleled demand for the film after its release. 3) Cultural : Most of USA lives in nuclear families where ―Weekend Escape‖ with different entertainment activities is of the highest importance. 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.25 a day (PPP. So those 40+% who are thinking of how they will feed themselves. for them watching movies and that too in theaters is out of question. where they might spend the weekend evenings just talking or playing cards. Probable reasons for the above could be: 1) Poverty in India : According to a 2005 World Bank estimate. exhibitors upgraded their theatres to get prints of the film.which actually is similar to the Population of USA. This resulted in ticket prices going up heavily and the family audience which rarely ventured into cinema halls at the . The release of Hum Aapke Hain Kaun was a defining moment in the box office history of Hindi cinema.whereas India may have more joint families and more close knit environment.60 total number of footfalls have been pretty much decreasing in India every-year or just about Steadied.

. 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.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.

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. The budgets allocated for such publicity are comprehensive but smaller than the budgets at producer level. The budgets at this level are very big and the media used are teaser on TV channels and cinema halls. This publicity is aimed at all the target audience in the country for creating a ―buzz‖ about the movie. But the scope of this is publicity is limited to the distributor‘s territory. Also. local newspapers etc. At producer level the publicity of movies is done at a large scale with a national or international scenario in consideration. The star cast of the movie is also associated with publicity at this level.  At distributor level. hoardings. national magazines etc. . 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. radio. this publicity tries to reach the audience who may not have access to cable TV or radio. The media used at this level are posters.

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

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

Lagaan The theme of the movie was a tightly guarded secret. Lagaan and Gadar are good examples of successfully using the audience sentiments to their advantage. However. After the first weekend the marketing strategy was changed and the cricket match in the film came into focus.65 example the lead actors. This resulted in some losses. The movie was released all over the country at the same time. How can Indians ignore an India vs. However since the length of the movie was 4hrs. only 3 shows per day could be screened. . music can be considered as strengths of a movie. Posters and teasers gave no hint of what the movie was about. This movie of the masses used the lay man‘s sentiments of patriotism to its advantage. India is a cricket crazy country. 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. sometimes messages that arouse sentiments in the audience are also used. This generated a big initial week collection. The music was very successful. The Music of the movie was an added advantage. 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. director. The movie music was promoted. banner or the subject of the movie.

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

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

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

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

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

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

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

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

where promos and trailers create viewer perceptions. India's screen density is very low. from INR 1 . while US has 36. box office collections of foreign films grew in both revenues and number of releases.000 screens. single screens. the number of regional films produced annually has fallen from around 800. In contrast. which produces far less films than India. With around 12.000. has 65. with their dubbed versions making inroads into the semi-urban and rural markets. . China.74 Regional Films The major regional film industries are Tamil and Telugu. followed by Malayalam.900 active screens (down from 13. out of which over 95 percent are standalone. Alterative marketing methods Teasers In the world of entertainment branding and promotion.8 billion for 72 films in 2004. On a cumulative basis. Bengali and Punjabi. With increased viewer exposure to a plethora of entertainment options on satellite television.5 billion from 60 films in 2003 to INR 1 . three years ago. teasers play a very vital role when it comes to films and their marketing. to around 650 currently. English Films Big budget Hollywood films are beginning to make a mark.000 in 1990). which together earn around INR 15 billion.

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

‖ Hollywood marketing strategies in India With increasing literacy levels. only to leave him with a surprise at the end. engage. which is why films offering that style of entertainment do well. In fact deceive the viewer first. As recently as 2005. the demand for international fare among the English-educated Indians is growing. Tom Cruise.―Teasers are always the best way to engage the curious viewer. Post-globalization. and Rani Mukherjee. And for them. Hollywood offers the latter. especially growing mid. Karan Johar. the wellheeled urban Indians.76 As aptly summed up by Frame by Frame creative director Anita Olan . is rediscovering the magic of cinema in the plush multiplexes. and create anticipation amongst the viewers. it‘s always ok to mislead. foreign films accounted for only about 5 percent of about $1 billion in theatre tickets sold annually here. Steven Spielberg and Julia Roberts are as good as Shahrukh Khan.and high-income segments. 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. But Hollywood profits in India are growing at 35 percent a year. Also remember. . and the US film industry is becoming more aggressive. one need to build effective teasers. and to tempt.

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

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

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

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

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

. 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.

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

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

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. In addition the unorganized methods of financing made the investors pay high rate of interest. KPMG Analysis Some additional statistics of Indian Film Industry business in India â€― • 1000 movies produced annually over the last 4 years (US $ 2. the Indian Film Industry was accorded Industry status only in 2000. • Piracy. 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. – Source: FICCI-KPMG M & E industry report 2009. The number of mulitplexes in India currently stand at 850 which is expected to reach 1. it accounts for only 1% of the global film industry revenues. • Television.000). • Uncertainty over entertainment tax.4 Billion in 2008) • Revenues dominated by Domestic Box Office at 75%. Inspite of being 90 years old industry. Only recently the industry have got access to .400 in 2013.85 • Alternative modes of entertainment.

but The bigger the mod. On the other hand. the idea does not seems to pleasing. 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. it shows that the expenditure on a movie always been a question. 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. wife and two kids thinks of venturing out into a multiplex on a Saturday evening. if a common middle class family comprising a husband. one can believe that the sector offers high visibility for steady cash flows. exhibitors. 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. Given the prevailing demand-supply dynamics. if you count the cost! . the greater the thrill is an old saying.86 organized finance. Corporatization is taking shape in the Indian Film Industry. At a time when single-screen theaters are dying due to lack of footfalls. Multiplexes offering tickets at around 150 bucks cannot call for large chunk of audience on account of high prices. In a country like India where people still feel and believe that a movie needs to have PAISA VASOOL• value. broadcasters and music companies. distributors.

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 one can see will eventually make single-screens a rare species in India. The new phenomenon which is gathering pace in and around cities and towns is Multiplexing of single-screens. 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. .

internationally renowned production studios and even affluent investors are readily opening their chequebooks to fund the production of Indian movies. have ensured that the industry is barely one-tenth of the US filmed entertainment market. however. Problems of low movie ticket prices. corporate houses. which is estimated at $35 billion. India is the largest producer of films in the world. higher spends on entertainment. the film sector is poised to record an annual growth rate of 13 per cent to Rs 17. The changes in the way Indian films are now produced and marketed have not only .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. With projections like that. 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. Scriptwriters. 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. Banks.000 movies a year. unorganised trade practices and rampant piracy.600 crore through 2012. According to the PricewaterhouseCoopers (PWC) Report on the Indian Entertainment and Media Industry 2008. filmmakers and artistes never had it so good.

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

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

home video. corporates have changed the dynamics of the business. capitalising well on the trend of entertainment channels using movies to capture eyeballs. Corporates go beyond just funding production. music and television satellite rights. Listed players such as UTV. CORPORATISATION OF FILMS With emerging revenue streams making film production viable. . compared to about 40 per cent in Hollywood. We provide support from the creative. which has more than a dozen movies lined up for the year. where the box office accounts for 75 per cent of the revenues. 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. As listed entities. Television Eighteen (Indian Film Company). says Siddhart Roy Kapoor. more such corporates are entering the film industry.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. 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. CEO. Adlabs and Pyramid Saimira are already present in the production business in a big way. UTV Motion Pictures. commercial and operational perspective. Viewing of films on other platforms such as home entertainment and Internet is untapped in India. Much as the artistes and old hands in the industry hate to admit it.

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

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

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

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

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

6. R. 3.. “Made in India” in between music television and patriarchy. 12. 100 Bolywood Films. 202-223).97 Palgrave Macmillan. 198-215.Chopra.Dissanayake. 4. S. P. North Carolina: Duke University Press. Gloucestershire: Tempus Publishing Limited. Television and New Media. K. Bollywood: A History. (2006). Saathiya: South Asian cinema otherwise known as „Bollywood‟. S. S. 136. London: British Film Institute. Trendsetting and product placement in Bollywood film: Consumerism through consumption. Metro Magazine. Rethinking Indian popular cinema: towards newer frames of understanding. New York: Routledge. & Curtin. Dissanayake (Ed. A. Rethinking Third Cinema (pp.. (2006).Boltin. 10. Guneratne & W. 9. New Cinemas: Journal of Contemporary Film. Cinema at The End Of The Empire. (2006). 8. M. 4. G.Dwyer. M. S. 52-54. (2007). 44. Management Decision. New York: Warner Books. & Stonehouse. 1344-1362.Bose. 13. (1998).Kumar. In A.Chakravarty. National identity in Indian Popular Cinema 19471987.Jaikumar.). C. New Delhi: Oxford University Press.Kripalani. (2003). 5.Minocha. . 11. King of Bollywood Shah Rukh Khan and The Seductive World of Indian Cinema. 345-366. 7. (2002). (2003). (2006). W. (2005). The “learning trap”: a Bollywood frame for strategic learning.

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

........................... MAJOR CIRCUITS IN INDIA.....................32 3........................................ E-TAX ON BOLLYWOOD MOVIES. TOP GROSSNG MOVIES..36 ....... TERRITORY WISE BUSINESS WEIGHTAGE....30 2........41 5...............99 LIST OF TABLES 1....33 4.41 6.................................. WEEKLY SHARE OF DISTRIBIUTERS........ WEEKLY SHARE OF MULTIPLEXES......

100 LIST OF GRAPHS .

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