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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.

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

. no.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.

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

estimated at 68 billion rupees ($1.5 billion) in 2005. R. he prompted the Indians to set up their very own satellite channel called Zee TV (Tyrrell. Likewise. In fact. From this.7 Bollywood seem like a derivation from Hollywood (Dwyer. 20055).4 billion) by 2010 (Chopra. in Tracey . In 2006. with Zee TV. but also those industries related to it such as fashion industry. Bollywood versus Hollywood: Battle of the Dream Factories. The Indian Entertainment and Media Industry. 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. it had indirectly introduced new jobs opportunities to the Indians. (2005). a PricewaterhouseCoopers report. H. This venture not only provided new jobs for the Indians in the entertainment sector. mainly because the industry is taking place in a developing country. (1999). one would not expect the original form to be the same as the imitation ones. Bollywood is often considered as subordinate to Hollywood. London: British Film Institute Tyrrell. the entertainment industry is able to go beyond India and into the world‟s entertainment market. Importance of study of Bollywood Economics When Rupert Murdoch‟s STAR network tried to penetrate into the Indian entertainment industry. we 5 6 Dwyer. people usually regard original products as superior to their imitations. India. The industry. If one is buying an original pair of Nike shoes. was projected to reach 153 billion rupees ($3. 100 Bolywood Films. This would have benefited the local economy. 19996). It was even included in the fifth edition of the Oxford English Dictionary (Chopra. With the initial aim of setting up Zee TV to counter Western programmes. 2007). Also. the name was used by the media and later used widely. 2007). Despite the displeasure of those in the film industry however.

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

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

To compare between the revenue generated by multiplexes and single hall theatres 7. Methods of data collection will also include data figures & graphs from different chains of multiplexes & advertisement companies on product placement in movies. To study the cost and revenue generation system of bollywood 3. To study the corporatisation of bollywood films 8. Secondary data would include analysis from various movies and published articles. To study the marketing structure of bollywood industry 5. To study different distribution methods and models in bollywood 4.10 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 the methods involved in publicity and marketing of bollywood movies 6. To study and analyse the effect of bollywood on Indian economy 2. The qualitataive analysis would involve collection of statistical data available from the different multiplexes &distributors and demographics details over a period of time. .

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.

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

(2006). They may even allow small businessmen 15 Kripalani. and no hesitation in taking the law into his own hands to ensure justice. Gloucestershire: Tempus Publishing Limited. Finally. A. . It gave a different dimension to Bollywood internationally. yet unknown to many. in the 1990s. 268) Such films usually reflect the pent up anger of that generation. a film written and directed by Ashutosh Gowarikar. 34516). „Bachchan was the brooding loner. Media. 200817). (2006). 699-717. 17 Athique. Hidden Dragon. Underground figures usually made the decisions in the production of a film. Bollywood: A History. The development of the Hindi film industry seems to be relatively progressive. Trendsetting and product placement in Bollywood film: Consumerism through consumption. 4. p. in view of the negative societal conditions. C. 200615). playback media and the informal economy. which the system had failed to provide. most Hindi films were believed to be funded by “dubious money” (Athique. the film „was Bollywood‟s Crouching Tiger. with very little time for song and dance. The development of Hindi films also reached a new height. 30(5). was meted out to deserving criminals. in the late 1980s and 1990s. 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.‟(Bose. 2006.16 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. 198-215. p. was nominated for an Academy Award for the Best Foreign Language Film. M.‟ (Bose. As said by Noel Rands. However. The film had set the benchmark of success for future films of the new era to follow suit. 16 Bose. an actor in Lagaan. Culture and Society. 2006. when Lagaan (2001). (2008). The claim meant that the films were produced by using money gained from criminal and illegal activities such as tax avoidances in India. New Cinemas: Journal of Contemporary Film. The global dynamics of Indian media piracy: export markets.

theatre owners will charge the distributor a very unreasonably high rent for the usage of the facility to screen the films. 18“not only are there such high returns in lending money to film producers. Culture and Society. Highlights changing trends in bollywood business with the helpof statistics. actors. these distributors have to turn to illegal sources so as to raise money. The global dynamics of Indian media piracy: export markets. . A. 18 Athique. How is our study unique? The study gives a complete overview of bollywood economics along with alternative methods and case studies. jewelry and associated trades. Illegal sources are private investors mostly from the construction. 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. the distributor fails to earn enough capital to cover the production costs. directors and producers have to obey every single word of these “investors”. (2008). thieves.” Living in fear of being threatened or even killed by these underground figures. unreliable feedback from the box office and also competition among the different players from the industry. actresses. At the same time. 30(5). playback media and the informal economy. With the taxes. To quote from the article by Athique (2008). Media. 699-717.17 to become their own film producers whereby famous actors and actresses act in the films. criminals and underworld dons attempting their hand in the film industry. As a result. but unaccounted money can be put to use in an industry where stars and others usually get paid in cash and receipts are only issued for a fraction of the total amount involved… it is not surprising then to find pirates. Explains anomalies in terms of economic factors.

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

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

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

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

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

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

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

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

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

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

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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.

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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)

Cinemax and Fun) cross Rs. 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. Inox.5% in the third week and 30% in and after week 4. 37.5% in week 2. 17. Producers/Distributors will get 50% of the nett collections from the multiplexes in the first week. 42. An additional 2. 5th June 2009. Big.5 crore during the entire first run of the . Exhibition: Multiplexes: With the rise of Urban/City Multiplexes bulk of the business comes from these Multiplexes only.31 But a approximation can be made as follows : Lets look into the above in some detail. 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.

a rebate of 2.5% for weeks 2 and 3 will be given to the chains by the producers/distributors concerned. 10 crore across the multiplex properties owned and operated by the six national chains. 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. Conversely. 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): . 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.32 film. if any film released with more than 500 prints collects a total of less than Rs.

Independent Multiplexes : Now the Top 6 Plex chains of India give about 70% of the revenue of Total Plex business.33 Now the above is just an example. 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. 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. There are many Independent Multiplex spread all across the Nation who contribute the rest 30% of the revenue. The Screens are actually given on rent to the producer to play their movie at a . as of now they do provide some substantial amount as long as the movie has elements to work in the Single Screens. Now 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.

.000 and the rent will be 20.40. Usually Big movies are booked for 2 to 3 weeks at single screens and depending on the movies performance the booking is increased or decreased.000. 2) Suppose movie has done 70% full week the nett revenue will be 7*100.000*7 = 1.000*7 = 1.000 = 7.000 and the rent will be 20.5) = 3.4)/3.50.9-1.3) = 2.4)/4.9 ~ 71%.000.000 and the rent will be 20.000 and the rent will be 20.000*7 = 1.000 per day.000 rupees per day as its rent for running full shows of a movie.000(.90.5 = 60%. 4) Suppose movie has done 30% full week the nett revenue will be 7*100.40.5-1.4)/2. The share % going the producer will be (7-1.00. Lets take a few examples here. The share % going the producer will be (4.40. 3) Suppose movie has done 50% full week the nett revenue will be 7*100.40.000.10.7) = 4. Lets assume a given Single Screens charges 20.000.000(0.000(0.1-1.4)/7 = 80%. The maximum revenue the movie can do with full capacity is say 100. The share % going the producer will be (2. The share % going the producer will be (3.000*7 = 1.1 = 33%.34 fixed rate and the rest of the revenue (after subtracting the rent) goes directly to the producer. now by the end of the first week: 1) Suppose movie has done 100% full week the nett revenue will be 7*100.

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

25.50.03 207.000 106.000 15.00.00.000 Gross 18.00.25.50 68.50.00.50 66.46.00.000 16.00.000 18.00.50.00.000 17.00.00.000 20.000 28.000 14.00.000 17.50.00.50.00.00.000 19.00.000 52.000 30.75.75.000 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 61.50.00.25.000 48.00.00.000 10.00.000 28.25.00.00.00.75.000 12.00.000 22.00.00.00.00.18 60.69 71.000 26.00.50.000 12.000 20.50.25.00.44.00.25.000 15.00.79.00.00.00.25.000 16.56 71.00.000 35.00.50.000 309.00.000 21.25.00.00.00.000 21.40.00.00.000 29.000 21.000 28.00.000 29.000 123.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 10.000 18.00.000 30.78 182.00.00.95 67.00.000 30.00.33 73.00.00.00.00.00.00.25.00.000 30.00.000 69.00.000 61.000 Adjusted Gross 22.00.00.000 9.25.50.64 .00.00.00.000 26.26 21.000 26.00.50.00.00.00.00.000 25.00.44 64.00.00.000 48.000 14.00.25.000 17.00.000 16.78 74.50.000 16.00.000 14.00.33 73.000 35.00.000 85.000 16.000 76.000 45.00.33 71.41.00.00.50.000 13.00.00.50.000 25.000 21.00.00.00.77 120.00.54 83.25 71.00.00.000 267.000 25.00.00.000 28.50.000 17.000 10.77.00.00.50.50.00.00.00 62.000 29.72.11 117.000 27.75.33 149.000 23.00.

00.76.00.00.00.000 58.000 36.00.000 17.000 50.000 103.000 46.000 80.00.25.75.42 19.00.95.00.000 79.40.000 138.41.000 18.50.000 74.000 33.00.00.69.00.05.000 54.000 29.09.00.000 22.00.00.000 37.75.000 84.000 72.00.00.25.10.00.000 24.00.75.000 74.00.000 78.00.00.52.000 33.00.00.25.00.000 93.25.000 32.000 24.000 82.000 75.000 42.000 53.00.000 77.76.000 130.00.000 20.00.000 76.50.00.00.00.00.000 28.00.75.000 97.00.78.37 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 28.00.00.000 69.000 Hit Hit Hit Semi Hit Above Average Hit Blockbuster Super Hit Semi Hit Above Average Average All Time Blockbuster 2001 2001 2001 2002 2002 2002 2003 2003 2003 2004 2004 2004 2004 2005 2005 2006 47.00.00.00.00.00.000 32.00.00.000 130.75.00.00.00.00.00.75.00.000 172.68 92.000 35.00.00.000 43.000 31.000 74.75.000 111.00.00.50.000 9.000 146.08.00.00.00.00.000 15.000 32.50.47.55.25.00.50.00.50.61.25.00.00.00.70.000 112.00.000 37.00.25.25.05.00.25.000 33.000 29.000 39.000 20.00.000 16.75.00.00.00.00.00.00.50.00.00.50.00.00.95.000 21.00.000 122.000 19.000 40.00.63 75.00.000 100.00.00.25.00.26 65.62.00.000 22.00.00.000 42.000 50.000 29.00.50.20.000 48.000 67.00.000 68.00.50.00.00.46.00.00.00.00.09.00.00.00.00.000 47.50.75.000 18.00.00.000 35.00.000 61.000 61.00.000 Blockbuster Hit Semi Hit Hit Super Hit Above Average Blockbuster Hit Average Super Hit Hit Hit Hit Super Hit Hit Blockbuster .82.00.50.000 38.00.000 43.000 286.000 40.00.00.00.000 107.

000 97.000 70.86.00.000 86.00.000 117.00.00.75.14.00.000 84.00.00.48.000 98..94.000 76.000 66.25.000 110.38 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.50.50.75.00.000 77.000 61.000 89.25.00.84.000 74.01.000 124.000 44.000 71.00.75.000 72.00.000 82.000 58.69.00.00.00.57.00.75.000 269.00..50.000 103.00.000 55.37.000 133.00.00.000 90.00.00.000 61.00.00.00.00.09.00.00.00.21.77.000 61.00.02.000 66.000 269.50.00.50.42.00.00.00.70.000 85.50.00.000 81.000 91.00.25.00.25.50.67.00.50.00.00.000 62.00.00.00.000 95.00.00.000 76.00.00.000 72.40.90.000 83.00.78.000 52.000 66.00.25.00.75.00.00.42.00.00.50.00.000 82.00.000 75.000 128.00.000 83.00.00.000 82.000 51.000 62.00.000 51.000 94.00.00.000 43.89.48.000 202.00.19.88.00.00.14.14.00.000 85.50.000 114.000 63.000 89.75.80.000 118.000 81.000 47.000 79.26.00.22.75.48.75.000 67.00.000 56.25.000 41.50.00.000 40.00.88.78.00.00.00.00.00.00.70.000 155.000 50.000 93.00.000 100.00.41.00.75.000 87.00.74.92.00.00.000 45.00.000 60.00.00.000 68.50.00.00.000 79.00.000 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 .25.000 93.50.000 95.00.000 105.00. Ya Jaane Na Golmaal Returns Dostana Three Idiots Love Aaj Kal Ajab Prem Ki Ghazab Kahani Wanted 2006 2006 2006 2006 2006 2006 2006 2006 2007 2007 2007 2007 2007 2007 2007 2007 2008 2008 2008 2008 2008 2008 2008 2008 2009 2009 2009 2009 69.000 69.000 68.75.00.00.000 71.00.00.000 49.78.000 127.58.00.00.000 71.00.00.00.00.000 59.000 170.000 60.000 91.00.

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Here the Distributer keeps a certain % of the nett revenue as his share. its called Recovery. and gives the rest of the proceeds to the Producer.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. 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. 2) Released on Minimum Guarantee: Here the Distributer pays a certain MG (Minimum Guarantee money) to the producer and releases the movie. So a 60% for Delhi represents that the trade expects Delhi to do 60% of the business done in Mumbai circuit . Anything beyond the 25% is called Overflow which is to be shared 50:50 between the Distributer and the Producer. When the movie is sold to the distributer its generally sold from circuit to circuit. If the Distributer recovers his MG. 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.

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

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

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

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

Music Rights – 15 cr. All in all Red Chillies is at Break-Even already.45 Revenue – Theatrical Rights – 77 cr. . (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. (Expected or more) Satellite Rights – 35 cr. DTH/DVD – 7 cr. theatrically will start giving returns to Red Chillies and Eros both. 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. So anything above 155 cr. Merchandise and promotions – 14 cr. Hunters College head entertainment division Klaus Muller. it has become essential for content distributors to ensure maximization of profit and appropriate exposure level of the content. DISTRIBUTION PATTERN FOLLOWED IN NEW DELHI REGIONS As movie distribution markets worldwide are beginning to grow. So in all around 170 cr. revenue would be earned by Red Chillies. Addressing this topic at ASSOCHAM. P9 Integrated CEO Navin Shah and Movico Technologies senior advisor Andy Jacob.

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

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

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

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

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

51 Overview of the film making business This overview is required to understand the exact motivation behind the promotion and publicity of a movie. Location hunting is done for shooting the film. To get a high price from the distributors. The distributors buy the movie at a price suitable for their territory. The completed film is processed in studios and the film is finally ready for release. The producer tells the scriptwriter to create a script based on this concept. A distributor from each territory buys the rights to distribute the film to the theatre owners in his territories. cinematographer and choreographers. This process is called casting. editor. The producer arranges finances from financers based on this budget. In general the movie making business can be summarized as follows: The scriptwriter or director or a producer comes up with a concept. the banner. music director. The film is shot. 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. lyricist. . The director gives an estimated budget and schedule to the producer for the film shooting. The main aim of the producer is to sell his movie at a high price to a distributor. At this stage the publicity and promotion phase of the movie begins for the producer. the producers publicize the film in order to pull crowds to the theatres. scriptwriter. India is a vast country and the market has conventionally been divided in 9 territories by the distributors. The producer then officially hires his core team of director. 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. The distributors and theatre owners get money through the ticket sales. does the theme suit their territory. the producer definitely gets a higher price from the distributors. The distributors then release the movie prints to theatres. the producers share some information of the movie to the distributors through trade guides. how the movie is being promoted. If the music of the film has done well in the market. . The distributors compare different trade guides and decide which movie they want to buy.52 the director and actors). Producers also get a percentage share from the ticket sales. what theatres in their territory would be ready to screen this movie etc. Before the release.

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

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

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

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

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

58 CHAPTER 8 ANOMALIES IN BOLLYWOOD With 30% the Population and One-Third the Movies.89 Total Footfalls : 1339 Million ~= 134 Crore India Footfall : Considering Hindi is first language of approx 40% of People in India.4 Average Ticket Price : $7.USA has 2 times more footfalls than India. Three Biggest Industries are: .(not the other way around). 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.565. USA Footfall : Year : 2010 Total Movies : 534 Total Gross in USD Millions : $10. Population : USA : 307 Million + 33 Million(Canada) = 340 Million India : 1115 Million North America has 30% of the Population Compared to India. Bollywood can be approximated to have similar impact in Cinema of India as far as Money inflow is concerned.Even if the number is more than 40%. So. still we are taking a conservative approach as it will give a bigger number for India Footfall. a calculation for Bollywood can be done and then converted to a All India Number.

though most metros have reached saturation by now. USA has around 2000 Multiplexes and India has approx 850 Multiplexes and 11. Even if we add 5 crore extra as error we get just about Half of USA Footfalls(134/2 = 67 crore).5 crore. so for All India they will be : 25/. that 25 crore footfalls are only for Bollywood.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.4 = 62.historically .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.75 cr Avatar = 10+ cr The Dark Knight = 7.5+ cr in BW or 6+ cr All India Titanic = 12. HAHK ~ 3. 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).5 cr in BW or 9 cr All India 3 Idiots = 2. The Most telling figures are how the biggest historical blockbusters of Modern India don‘t outnumber their counterparts in USA in terms of Footfalls. Infact.5 cr And its not like India lacks exhibition prowess.

41.6% of the total Indian population falls below the international poverty line of US$ 1. Probable reasons for the above could be: 1) Poverty in India : According to a 2005 World Bank estimate. for them watching movies and that too in theaters is out of question.3 in rural areas). 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.(As is the case in USA). exhibitors upgraded their theatres to get prints of the film.which actually is similar to the Population of USA.25 a day (PPP.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. 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.2006 onwards has seen a better period relatively. where they might spend the weekend evenings just talking or playing cards.6 a day in urban areas and 14. So those 40+% who are thinking of how they will feed themselves. 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. 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. in nominal terms 21.

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

Also. At producer level the publicity of movies is done at a large scale with a national or international scenario in consideration.  At distributor level. The star cast of the movie is also associated with publicity at this level. But the scope of this is publicity is limited to the distributor‘s territory. 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. this publicity tries to reach the audience who may not have access to cable TV or radio. national magazines etc. The budgets allocated for such publicity are comprehensive but smaller than the budgets at producer level. This publicity is aimed at all the target audience in the country for creating a ―buzz‖ about the movie. . local newspapers etc. The media used at this level are posters. hoardings. The budgets at this level are very big and the media used are teaser on TV channels and cinema halls. radio.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 Indian film music experts have always experimented with new things to cater to the changing tastes of music lovers. singers. In the early years of Indian cinema. composers and lyricists are attracted to the Indian Film industry. Indian Film Music is said to have begun with the release of Alam Ara in 1931.63 Music as a promotion tool One of the most popular Indian music forms is the Filmi music. produces thousands of films a year. S D Burman. most of which are musicals and feature elaborate song and dance numbers. with some Western elements. India is a land of great musical heritage. Some of the notable are Lata Mangeshkar. Oudhi etc. music experts have flirted with western influences too yet the Indian flavor has always remained there. Though in the process of evolution. . It is mainly because of the same reason that almost all our means of entertainment are inspired by music. The Indian film music has given a number of great music talents over the years. popularly known as Bollywood. Asha Bhonsle. Kishore Kumar. R D Burman. Khaiyyam and many others. along with Indian regional film industries. the music was mainly classical and folk in inspiration. Another trend in Indian film music is that of integration of some popular regional languages such as Punjabi. A R Rehman. K L Sehgal. Mohd Rafi. It is because of the huge popularity of the Indian film music that a large number of talented music directors. Hindi film industry. The most fascinating part of Indian film music is its evolution with time.

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

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

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

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

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

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

Govt. shelling out complementary movie tickets. interviews with film stars and music composers. etc. Bobby Deol. featuring dance experts from Bollywood. including the film's ace choreographer Vaibhavi Merchant giving dancing tips to listeners.7 FM with Yashraj Films as its exclusive on air partner for the film Jhoom Baraabar Jhoom. Lara Dutta. . listeners got the chance to hear each of the stars of the film all day from 9 am . Taking the case of the tie-up between Big 92. Prior to the launch of the movie. 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'. The station featured interviews of Preity Zinta. Also. and music directors Shankar-Ehsaan-Loy during the music premiere.7 pm.. Common promotional activities include on-air contests. Listeners could win a chance to be part of an exclusive music video 'Jhoom Baby Jhoom' featuring common people dancing to the title track. in addition to getting an opportunity to interact with the stars of the film. an option to meet the stars in person. Tie-ups with radio channels for marketing films are becoming increasingly common. there were approximately 132 lakh listeners of FM radio in the major metropolitan cities across India. Big 92.70 Other Major Channels of Marketing (apart from TV) Radio According to the Ministry of Information and Broadcasting. music and movie premiere coverage. of India.7 FM provided special content around dancing.

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

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

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

followed by Malayalam.000 screens. China. On a cumulative basis. where promos and trailers create viewer perceptions.5 billion from 60 films in 2003 to INR 1 . Bengali and Punjabi.8 billion for 72 films in 2004.000. which produces far less films than India. which together earn around INR 15 billion. from INR 1 . English Films Big budget Hollywood films are beginning to make a mark. Alterative marketing methods Teasers In the world of entertainment branding and promotion.74 Regional Films The major regional film industries are Tamil and Telugu. has 65. India's screen density is very low. the number of regional films produced annually has fallen from around 800. single screens. box office collections of foreign films grew in both revenues and number of releases. .000 in 1990).900 active screens (down from 13. while US has 36. out of which over 95 percent are standalone. With increased viewer exposure to a plethora of entertainment options on satellite television. with their dubbed versions making inroads into the semi-urban and rural markets. to around 650 currently. With around 12. In contrast. three years ago. teasers play a very vital role when it comes to films and their marketing.

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

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

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

Sony Entertainment Television (SET). Sony Electronics also played a part. 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. specially created a program called "Spotlight. Sony BMG especially created a single for the movie sung by the famous Pakistani band "Strings". To promote Spiderman 2.78 Here we take the example of promotion of Spiderman2 which created a benchmark for Hollywood movies‘ success in India. On both SET and SET MAX. SET MAX. Sony Pictures Home Entertainment promoted the film through their DVD and VCD sales for Spiderman (the first part). It's now an era of coexistence. was tied in to promote the film through their high visibility programs such as Jassi Jaisi Koi Nahi /Yeh Meri Life Hai. Another Sony TV outfit. Sony Ericsson launched their first branded phones in India (Spiderman 2 mobile phones). Sony's Indian television arm. Their first major film promotion in India was through their hi-end retail stores "Sony World". These phones were promoted through a tie-in with the film. courtesy multiplexes which have added capacities. ." hosted by Mandira Bedi. the Spiderman was shown swinging in and out as and when the channels IDs appeared. Sony Pictures went all out. their brand ambassador and a celebrity in India.

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

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

even in your refrigerators and many more such places not marked for them earlier. For Fanaah Yash Raj Films had three different products. For Rang de Basanti the makers joined hands with Coke for exclusive limited edition coke bottles. 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. it not just serves as link between fans and brands but also provides a great publicity base and a recall factor for the movies. key chains and bags for Superman Returns. which had the images of the stars on it. Riding on the popularity of these films. The figures in India haven‘t skyrocketed to such heights but with the way things are shaping up. makers in India are going the George Lucas (Star War maker) way whose merchandise till date has reportedly touched $20 billion in estimated revenue. The reasons are more than the fact that merchandise is an established revenue stream. merchandising is fast making headway. .81 necks. 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.

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

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

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

400 in 2013.85 • Alternative modes of entertainment. 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. • Piracy. In addition the unorganized methods of financing made the investors pay high rate of interest. it accounts for only 1% of the global film industry revenues. KPMG Analysis Some additional statistics of Indian Film Industry business in India â€― • 1000 movies produced annually over the last 4 years (US $ 2. helping curb piracy and increasing revenues for Producers • Corporatization and Industry status augmenting financing • Hollywood Studios partnering with Indian companies and movie makers Though India produces the largest number of films in the year (annually more than 1. • Television.4 Billion in 2008) • Revenues dominated by Domestic Box Office at 75%. • Uncertainty over entertainment tax. – Source: FICCI-KPMG M & E industry report 2009. Only recently the industry have got access to . The number of mulitplexes in India currently stand at 850 which is expected to reach 1. Inspite of being 90 years old industry. the Indian Film Industry was accorded Industry status only in 2000.000).

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

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

it is no wonder that investors have begun to smell the money that can be generated from this business. unorganised trade practices and rampant piracy. filmmakers and artistes never had it so good. But the mushrooming of multiplexes. have ensured that the industry is barely one-tenth of the US filmed entertainment market. higher spends on entertainment. According to the PricewaterhouseCoopers (PWC) Report on the Indian Entertainment and Media Industry 2008. Banks. 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.000 movies a year. the film sector is poised to record an annual growth rate of 13 per cent to Rs 17.88 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. India is the largest producer of films in the world. however. Problems of low movie ticket prices. corporate houses. The changes in the way Indian films are now produced and marketed have not only . Scriptwriters. which is estimated at $35 billion. internationally renowned production studios and even affluent investors are readily opening their chequebooks to fund the production of Indian movies.600 crore through 2012. With projections like that. But those unfamiliar with Indian films might be wondering: what‘s all the song and dance about? Releasing more than 1.

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

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

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

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

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

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

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

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

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....36 . TOP GROSSNG MOVIES.............................41 6.............. TERRITORY WISE BUSINESS WEIGHTAGE..30 2........ MAJOR CIRCUITS IN INDIA........................ E-TAX ON BOLLYWOOD MOVIES................32 3.. WEEKLY SHARE OF DISTRIBIUTERS...99 LIST OF TABLES 1......... WEEKLY SHARE OF MULTIPLEXES.....................................33 4........41 5.....................

100 LIST OF GRAPHS .

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