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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.

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

5 TABLE OF CONTENTS Chapter Chapter 1 Chapter 2 Chapter 3 Chapter 4 Topic Introduction to bollywood economics Literature review History and background of hindi films Cost and revenue generation system in bollywood Chapter 5 Chapter 6 Distribution methods and models in bollywood Factors affecting the verdict of movie in theatres Chapter 7 Chapter 8 Chapter 9 Chapter 10 Classification of bollywood movies Anomalies in bollywood movies Publicity and marketing of bollywood movies Comparison between multiplexes and single hall theatres Chapter 11 Chapter 12 Chapter 13 APPENDIX BIBLIOGRAPHY LIST OF TABLES LIST OFGRAPHS Banking involved and corporatisation of films Analysis Conclusion and findings Pg. . no.

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

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

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

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

To study different distribution methods and models in bollywood 4. The qualitataive analysis would involve collection of statistical data available from the different multiplexes &distributors and demographics details over a period of time. To study the corporatisation of bollywood films 8. To study the cost and revenue generation system of bollywood 3. To study the marketing structure of bollywood industry 5. 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 and analyse the effect of bollywood on Indian economy 2.10 Objective of this study 1. Secondary data would include analysis from various movies and published articles. . 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 methods involved in publicity and marketing of bollywood movies 6. To compare between the revenue generated by multiplexes and single hall theatres 7.

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.

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

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

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

masal movies. 5254. 24I. The location of a Hindi film production may differ from one film to another. availability and preferences of the producers or directors. This has become a 19 Boltin. 2002). depending on the demands from the script. 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. narratives and points of view (Boltin. typically. They would usually have to know how to dance. (2002). Culture and Society. 20 Srinivas. fight and even do comical scenes in the film. Media. Saathiya: South Asian cinema otherwise known as ‘Bollywood’. a seemingly inexorable combination of genres. Bollywood film takes up about three to three and a half hours. 155-173. The actors often take up familial roles. . 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. K. Usually. 20 A setting can take on days to be created and built just for a few minutes of song and dance. L. originally coined by theorist Rosie Thomas. 200319). (2003). social relations and the experience of cinema in India. The active audience: spectatorship. filming takes place in Mumbai. with occasional shootings in foreign countries. However. such as the father or son. Hence. One characteristic of a Bollywood film is that most films are just like musicals. This term. 136. 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.18 CHAPTER 3 HISTORY AND BACKGROUND OF HINDI FILMS Characteristics of a Typical Hindi Film Hindi films fit into a loose category of song-and-dance. Metro Magazine. There is a minimum of six to eight songs in a Bollywood film.

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

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

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

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

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

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

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

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

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

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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)

5 crore during the entire first run of the . 17. 5th June 2009. Big. 42. Exhibition: Multiplexes: With the rise of Urban/City Multiplexes bulk of the business comes from these Multiplexes only.5% in week 2. An additional 2. 37. Producers/Distributors will get 50% of the nett collections from the multiplexes in the first week. 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.31 But a approximation can be made as follows : Lets look into the above in some detail. Inox. The revenue sharing model adopted by the 6 major Multiplex chains of India(Exhibitors) and the Producers Association is as follows based on the agreement reached on Friday.5% in the third week and 30% in and after week 4. Cinemax and Fun) cross Rs.

10 crore across the multiplex properties owned and operated by the six national chains.32 film. 1) The number of audience decreases as weeks go by but the cost of running the show remains same. a rebate of 2. if any film released with more than 500 prints collects a total of less than Rs.5% for weeks 2 and 3 will be given to the chains by the producers/distributors concerned. 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). 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.

33 Now the above is just an example. The Screens are actually given on rent to the producer to play their movie at a . Independent Multiplexes : Now the Top 6 Plex chains of India give about 70% of the revenue of Total Plex business. 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. as of now they do provide some substantial amount as long as the movie has elements to work in the Single Screens. 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 share system for single screens is little different from plexes. 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.

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. The share % going the producer will be (7-1. 4) Suppose movie has done 30% full week the nett revenue will be 7*100.000*7 = 1.50.5-1. . 2) Suppose movie has done 70% full week the nett revenue will be 7*100.000(0.40.5 = 60%.9-1.3) = 2.10.00.40.9 ~ 71%. The share % going the producer will be (3.000 rupees per day as its rent for running full shows of a movie.000(0.000 and the rent will be 20.7) = 4.1 = 33%.000 per day.000 and the rent will be 20. The share % going the producer will be (4.5) = 3. 3) Suppose movie has done 50% full week the nett revenue will be 7*100.4)/7 = 80%.000.000(.000.000*7 = 1. The maximum revenue the movie can do with full capacity is say 100. now by the end of the first week: 1) Suppose movie has done 100% full week the nett revenue will be 7*100.1-1.4)/3.000 and the rent will be 20.000.40.34 fixed rate and the rest of the revenue (after subtracting the rent) goes directly to the producer.000.90. Lets take a few examples here. Lets assume a given Single Screens charges 20. The share % going the producer will be (2.4)/4.000*7 = 1.40.000 = 7.000 and the rent will be 20.000*7 = 1.4)/2.

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

000 85.00.00.46.00.000 29.000 76.00.25.000 309.00.00.000 14.000 Gross 18.000 14.00 62.03 207.000 10.25.000 16.00.64 .000 21.25.000 123.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 21.25 71.50.000 16.00.000 35.50.56 71.000 17.00.00.50.00.000 27.25.00.00.00.00.00.000 16.000 48.00.77.000 30.000 48.50.00.000 12.78 182.00.000 45.50.75.00.00.79.00.00.25.000 21.000 15.00.00.00.00.50.25.00.00.00.000 22.33 73.00.000 29.75.00.000 9.00.00.000 18.000 26.000 21.00.75.50.25.50.00.000 17.95 67.00.50 66.000 16.00.25.41.00.000 28.00.50.00.50.000 Adjusted Gross 22.50.000 20.00.25.50.000 10.00.000 15.26 21.000 29.00.75.00.25.00.000 17.00.33 73.000 20.00.00.00.000 267.50.00.72.00.00.77 120.000 30.54 83.00.00.000 30.11 117.33 71.00.000 106.00.00.000 25.00.000 25.00.000 17.50.44 64.00.000 26.00.25.40.000 19.00.69 71.50 68.000 13.000 28.000 28.00.000 14.00.00.00.00.00.000 12.000 28.00.00.00.000 VERDICT36 Super Hit Super Hit Super Hit Blockbuster All Time Blockbuster Super Hit Super Hit All Time Blockbuster Super Hit All Time Blockbuster Blockbuster Super Hit All Time Blockbuster Hit Hit Hit Super Hit Blockbuster Super Hit Semi Hit Hit Hit Hit Hit All Time Blockbuster Semi Hit Hit Hit Hit 1995 1995 1995 1996 1996 1996 1996 1996 1997 1997 1997 1997 1997 1997 1997 1998 1998 1998 1998 1998 61.000 18.00.000 69.00.00.00.00.18 60.000 52.00.50.00.00.00.00.00.44.00.00.78 74.000 61.50.000 26.00.00.50.00.000 16.000 35.33 149.00.00.000 23.000 30.00.00.000 25.00.

08.000 17.000 58.000 40.000 77.95.000 111.00.55.000 22.000 39.00.25.25.00.00.00.70.76.50.000 37.25.75.00.000 Blockbuster Hit Semi Hit Hit Super Hit Above Average Blockbuster Hit Average Super Hit Hit Hit Hit Super Hit Hit Blockbuster .00.00.00.76.000 40.000 37.000 29.000 9.00.000 38.000 79.00.000 33.00.00.000 97.75.000 42.00.00.000 32.50.00.000 18.00.000 76.000 100.00.00.50.63 75.62.00.50.000 42.00.00.50.000 112.000 35.82.000 67.00.00.00.75.00.25.25.00.00.000 122.00.00.68 92.00.25.000 46.00.00.000 22.000 50.00.00.50.00.00.000 69.00.00.000 172.000 78.000 130.41.000 68.00.00.00.00.00.000 43.69.00.75.47.00.50.61.000 93.000 80.00.000 138.00.00.000 130.75.000 32.00.25.00.000 31.09.00.00.05.00.000 54.000 146.000 20.00.00.00.42 19.75.09.000 47.00.000 82.000 19.00.20.00.25.78.00.00.25.50.000 18.000 43.000 74.50.000 50.00.000 48.00.000 74.00.00.00.00.00.26 65.95.00.52.00.00.00.000 286.00.00.000 28.00.00.00.75.75.00.00.00.00.000 61.000 53.40.000 29.000 28.50.000 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 47.000 32.00.000 72.000 15.00.00.37 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 8.00.000 20.25.50.000 24.000 84.00.50.00.00.75.000 29.00.00.00.05.00.000 33.000 74.000 16.000 24.00.000 36.00.000 33.00.000 75.00.00.46.000 61.00.00.00.000 35.000 21.10.000 103.00.00.00.000 107.00.00.

00.000 71.000 114.000 91.14.00.00.000 82.00.00.000 76.000 133.000 100.000 90.50.000 45.67.000 85.000 83.50.00.00.000 51.000 79.57.00.000 155.00.75.80.00.14.000 56.00.21..000 86.38 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.00.92.00..000 76.000 98.00.48.000 43.48.00.000 61.50.84.86.00.000 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 .75.000 66.00.00.00.00.58.00.000 71.88.000 89.00.00.74.000 72.50.00.41.00.000 84.000 127.00.00.00.00.000 202.000 79.00.25.000 69.00.50.00.00.000 128.00.000 66.000 93.09.00.00.25.00.00.00.00.00.000 170.00.00.89.00.48.70.00.00.000 51.50.00.000 82.50.00.00.000 82.000 95.50.000 47.000 68.000 44.22.75.01.000 72.14.50.25.000 117.000 41.00.000 93.75.000 67.00.00.42.00.000 95.000 87.00.000 118.00.19.00.000 269.000 269.00.00.00.000 124.25.75.00.00.000 58.50.000 77.75.00.00.00.00.000 62.40.000 85.000 52.00.00.000 49.00.75.50.00.88.25.000 94.000 89.75.50.00.00.000 63.75.000 66.000 81.000 55.78.00.00.78.00.77.69.00.00.00.25.00.000 110.50.000 103.000 59.90.00.000 105.000 61.000 40.00.00.25.00.00.000 60.00.000 60.42.000 50.78.000 91.00.37. Ya Jaane Na Golmaal Returns Dostana Three Idiots Love Aaj Kal Ajab Prem Ki Ghazab Kahani Wanted 2006 2006 2006 2006 2006 2006 2006 2006 2007 2007 2007 2007 2007 2007 2007 2007 2008 2008 2008 2008 2008 2008 2008 2008 2009 2009 2009 2009 69.00.00.000 81.94.02.000 61.00.00.00.000 75.00.70.000 68.00.26.000 62.00.00.00.000 74.000 97.000 71.000 70.75.000 83.00.00.00.00.00.

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Here the Distributer keeps a certain % of the nett revenue as his share. So a 60% for Delhi represents that the trade expects Delhi to do 60% of the business done in Mumbai circuit . at varying costs depending the weightage of the area/territory. 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. 2) Released on Minimum Guarantee: Here the Distributer pays a certain MG (Minimum Guarantee money) to the producer and releases the movie. Anything beyond the 25% is called Overflow which is to be shared 50:50 between the Distributer and the Producer. 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. When the movie is sold to the distributer its generally sold from circuit to circuit. A 100% for Mumbai means that the cost for with movie is sold in Mumbai is taken as standard 100% and other territories are sold at some ratio of it. its called Recovery.

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

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

Loss or profit is all on the onus of distributor here. So the entire risk of a movie is borne by distributor. Territory Sale . Generally producer would add up a margin and sell the movie. Theatrical Distribution Only – In this scenario the producer sells only the theatrical rights.In this scenario the producer himself distributes the movie to individual territories and hence the risk is with producer. retaining every other rights with him/her. 3. in this scenario the movie is sold outrightly to a distributor who will look after the revenue and costs after the deal. All revenue/rights/costs associated with the movie is earned/borne by the producer. Generally . 2. though it too depends on the scale and performance of the movie too. Outright Sale of a movie – As it depicts. Case in point – Almost every movie of YashRaj banners. as they distribute themselves. 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. If this worldwide distributor earns profit. the movie is plus and if not flop. Hence. in this case whatever profit producer earns would be considered for quantifying the profit/loss of a movie. There are industry prices for most of these. 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. Distribution Models Followed In Bollywood 1.43 Other Rights: DVD and Music are the most prominent from of extra revenue a movie can earn. All kinds of rights sold and revenue generated from theatrical business would go to distributors. There is always a clause that a certain print and advertisement costs and way in which this cost will be borne by the producer.

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

it has become essential for content distributors to ensure maximization of profit and appropriate exposure level of the content. Merchandise and promotions – 14 cr. DTH/DVD – 7 cr. All in all Red Chillies is at Break-Even already. P9 Integrated CEO Navin Shah and Movico Technologies senior advisor Andy Jacob. So in all around 170 cr. theatrically will start giving returns to Red Chillies and Eros both. So anything above 155 cr. Addressing this topic at ASSOCHAM. (Expected or more) Satellite Rights – 35 cr. All we can say right now is that a theatrical business of 155 crores would make the movie green for ALL. (which if we assume profit-share ratio of 50% between Eros and Red Chillies) theatrical business that is. moderator IPTV India Forum vice president Sujata Dev conducted a discussion with Eros International UK executive vice president Marcus Stuart.45 Revenue – Theatrical Rights – 77 cr. Music Rights – 15 cr. DISTRIBUTION PATTERN FOLLOWED IN NEW DELHI REGIONS As movie distribution markets worldwide are beginning to grow. . revenue would be earned by Red Chillies. Hunters College head entertainment division Klaus Muller. Game copyright – 5 cr.

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

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

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

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

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

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

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

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

54 I.g. Rang de Basanti. Om Shanti Om etc Attributes:  Item numbers  Catchy Music  Big openings  Action sequences  Stardom of the lead actors plays the most important role in deciding the fate of the movie. Action / Romantic movies. Deewar. Include Action movies and love stories. Attributes:  Patriotic songs  War setting  Terrorism  National flag  Army setting .g. E. Entertainment movies: These are also called Mainstream Cinema or Commercial Cinema. 2. Lakshya. Indian. Hero. potboilers. Sarfarosh. Also called Masala films. Patriotic / war movies E. LOC. These can be further divided into following categories: 1. Haqeeqat. Border.: DUS.

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

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

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

So.565. Bollywood can be approximated to have similar impact in Cinema of India as far as Money inflow is concerned.(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.USA has 2 times more footfalls than India.89 Total Footfalls : 1339 Million ~= 134 Crore India Footfall : Considering Hindi is first language of approx 40% of People in India. USA Footfall : Year : 2010 Total Movies : 534 Total Gross in USD Millions : $10. still we are taking a conservative approach as it will give a bigger number for India Footfall.Even if the number is more than 40%. Population : USA : 307 Million + 33 Million(Canada) = 340 Million India : 1115 Million North America has 30% of the Population Compared to India. Three Biggest Industries are: .4 Average Ticket Price : $7. a calculation for Bollywood can be done and then converted to a All India Number.58 CHAPTER 8 ANOMALIES IN BOLLYWOOD With 30% the Population and One-Third the Movies.

000(not a typo) Single Screens with many of those Single Screen being taken over and renovated and around 40-50 new plexes being made each year.5 cr And its not like India lacks exhibition prowess. Even if we add 5 crore extra as error we get just about Half of USA Footfalls(134/2 = 67 crore). HAHK ~ 3. The Most telling figures are how the biggest historical blockbusters of Modern India don‘t outnumber their counterparts in USA in terms of Footfalls.5 cr in BW or 9 cr All India 3 Idiots = 2.75 cr Avatar = 10+ cr The Dark Knight = 7. USA has around 2000 Multiplexes and India has approx 850 Multiplexes and 11. Infact.4 = 62.5+ cr in BW or 6+ cr All India Titanic = 12.historically .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. though most metros have reached saturation by now. so for All India they will be : 25/.5 crore. 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). that 25 crore footfalls are only for Bollywood.

for them watching movies and that too in theaters is out of question.3 in rural areas). in nominal terms 21. The release of Hum Aapke Hain Kaun was a defining moment in the box office history of Hindi cinema. exhibitors upgraded their theatres to get prints of the film. 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.6% of the total Indian population falls below the international poverty line of US$ 1. Due to unparalleled demand for the film after its release. where they might spend the weekend evenings just talking or playing cards.60 total number of footfalls have been pretty much decreasing in India every-year or just about Steadied.25 a day (PPP. So those 40+% who are thinking of how they will feed themselves. 3) Cultural : Most of USA lives in nuclear families where ―Weekend Escape‖ with different entertainment activities is of the highest importance.whereas India may have more joint families and more close knit environment.which actually is similar to the Population of USA. 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. Probable reasons for the above could be: 1) Poverty in India : According to a 2005 World Bank estimate. 41. This resulted in ticket prices going up heavily and the family audience which rarely ventured into cinema halls at the .6 a day in urban areas and 14.(As is the case in USA).2006 onwards has seen a better period relatively.

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.

The budgets allocated for such publicity are comprehensive but smaller than the budgets at producer level. Also. The star cast of the movie is also associated with publicity at this level. At producer level the publicity of movies is done at a large scale with a national or international scenario in consideration. The media used at this level are posters. . The budgets at this level are very big and the media used are teaser on TV channels and cinema halls. But the scope of this is publicity is limited to the distributor‘s territory. radio.  At distributor level. national magazines etc. This publicity is aimed at all the target audience in the country for creating a ―buzz‖ about the movie. 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. hoardings.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. local newspapers etc.

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

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

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. This resulted in some losses. Lagaan The theme of the movie was a tightly guarded secret. This generated a big initial week collection.65 example the lead actors. However since the length of the movie was 4hrs. However. Lagaan and Gadar are good examples of successfully using the audience sentiments to their advantage. England match set in the British raj era? Gadar This is a good example of how the public sentiment can affect the fortunes of a movie. sometimes messages that arouse sentiments in the audience are also used. only 3 shows per day could be screened. This movie of the masses used the lay man‘s sentiments of patriotism to its advantage. director. The Music of the movie was an added advantage. Posters and teasers gave no hint of what the movie was about. banner or the subject of the movie. The movie was released all over the country at the same time. How can Indians ignore an India vs. The advertisements aroused public sentiments by highlighting Sunny Deol‘s rhetoric on Pakistan and showcasing partition riots in graphic detail. India is a cricket crazy country. The movie music was promoted. The music was very successful. This generated an enormous amount of curiosity for the movie among the audience.

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

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

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

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

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

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

Among the first studios to have started off promoting films on the Net was Yashraj Films. Internet as a medium to promote a film is a viable option as it offers a wide platform of activities like reviews. 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. contests and interactive features. The survey also found that 54% of the net users watched at least one movie per month. photos and screensavers. email. Online promotions also enable filmmakers to tap the overseas market. . the entire song Where‘s the party tonight was featured on MSN‘s desktop TV. Industry experts believe that the cost effectiveness of the online medium is one of the reasons for its popularity. Anthony Kaun Hai ran an online contest with winners meeting the stars. and a web link to the official movie website with storyline. trailers. trailers. To promote Kabhi Alvida Na Kahna. RDB‘s characters wrote interactive blogs. 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. Their Mujhse Dosti Karoge went on to win the prestigious ABBY Gold award for its Internet marketing initiative in 2004.72 internet users in India today. ring tones and take part in celebrity chats. Lage Raho Munnabhai‘s promotion on MSN India consisted of video clips from the film aired on desktop TV airs. bulletin boards. music. and blog for marketing movies which in turn creates a buzz about the film. information on cast. crew. NRIs are also passionate about movies and like to download wallpapers. MSN also designed a theme pack on Messenger based on the film‘s characters.

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

Alterative marketing methods Teasers In the world of entertainment branding and promotion. In contrast.900 active screens (down from 13. with their dubbed versions making inroads into the semi-urban and rural markets. single screens. With increased viewer exposure to a plethora of entertainment options on satellite television.74 Regional Films The major regional film industries are Tamil and Telugu. while US has 36. the number of regional films produced annually has fallen from around 800.000. which together earn around INR 15 billion. teasers play a very vital role when it comes to films and their marketing.5 billion from 60 films in 2003 to INR 1 . which produces far less films than India. where promos and trailers create viewer perceptions.8 billion for 72 films in 2004. With around 12. box office collections of foreign films grew in both revenues and number of releases. to around 650 currently. three years ago. from INR 1 .000 screens. has 65. On a cumulative basis.000 in 1990). . Bengali and Punjabi. followed by Malayalam. India's screen density is very low. out of which over 95 percent are standalone. English Films Big budget Hollywood films are beginning to make a mark. China.

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

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

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

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

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

Merchandising Now the story does not end with the leading man and lady living happily ever after.80 colours are also being made available at the multiplexes where the film is being screened. 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. An important variable in co-branding is ―the fit between the movie and the brand‖. they can be spotted on T-shirts. the romantic pair in Fanaah or the animated god Hanuman. 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. However. In the case of Krrish. mugs and other paraphernalia. 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. For example. HLL chose to associate its Lifebuoy soap brand with Krrish HLL chose Lifebuoy over the other brands since the brand is all about protection. around youngsters‘ . It goes to add T-shirts. on your kids toys. Be it the super hero Krrish.

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

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.

Period! Art films. regional films. a single screen in a multiplex seats a far smaller audience. because when a cinema is converted from one to multiple screens the seats get divided among them. distributors and exhibitors are comfortable with such movies due to low cost but it has also scattered the options to audience. As per . as at the end of calendar year 2009. the Indian multiplex site sports all the features of an up-market turf. Anupam PVR. India‘s first multiplex situated in Delhi. two with a capacity of over 300 seats and the others with 150 seats. was converted to four screens. While the capacity at a single screen cinema is usually in the region of 850 to 1000 seats.83 CHAPTER 10 COMPARISON BETWEEN MULTIPLEXES AND SINGLE HALL THEATRES Multiplex Theatres in India has come a long way since its inspection in 1997. though not equally. Patterned along the shopping malls model of the multiplex as developed and prevalent in the West. The multiplexes steady proliferation in the metropolises and simultaneous penetration into some smaller cities and towns testifies to its increasing popularity. and sustained by the retail boom unleashed by the economic liberalization policy of 1991.000 Cr. The revenues being generated by multiplexes is estimated to be a whopping INR 12. 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. coinciding with the rise of disposable incomes in the hands of the urban Indian family. or sometimes a little over that. Multiplexes has given options to audience. Not only the producers.

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

• Piracy. KPMG Analysis Some additional statistics of Indian Film Industry business in India â€― • 1000 movies produced annually over the last 4 years (US $ 2. – Source: FICCI-KPMG M & E industry report 2009.000). Inspite of being 90 years old industry.85 • Alternative modes of entertainment. 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 1.400 in 2013. 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. it accounts for only 1% of the global film industry revenues.4 Billion in 2008) • Revenues dominated by Domestic Box Office at 75%. • Uncertainty over entertainment tax. In addition the unorganized methods of financing made the investors pay high rate of interest. The number of mulitplexes in India currently stand at 850 which is expected to reach 1. Only recently the industry have got access to . • Television. the Indian Film Industry was accorded Industry status only in 2000.

The analysis shows that more than 70% of people prefer going to multiplex than a single-screen.86 organized finance. the idea does not seems to pleasing. Given the prevailing demand-supply dynamics. exhibitors. Corporatization is taking shape in the Indian Film Industry. if a common middle class family comprising a husband. On the other hand. distributors. 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. it shows that the expenditure on a movie always been a question. Multiplexes offering tickets at around 150 bucks cannot call for large chunk of audience on account of high prices. In a country like India where people still feel and believe that a movie needs to have PAISA VASOOL• value. but The bigger the mod. With vertical integration taking place between producers. wife and two kids thinks of venturing out into a multiplex on a Saturday evening. broadcasters and music companies. This fact provides for ample testimony to the increasing prosperity as well as Indian consumers willingness to pay for superior-quality entertainment. one can believe that the sector offers high visibility for steady cash flows. if you count the cost! . At a time when single-screen theaters are dying due to lack of footfalls. the greater the thrill is an old saying. 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.

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

According to the PricewaterhouseCoopers (PWC) Report on the Indian Entertainment and Media Industry 2008. Scriptwriters.000 movies a year. unorganised trade practices and rampant piracy. With projections like that. it is no wonder that investors have begun to smell the money that can be generated from this business. But the mushrooming of multiplexes. Problems of low movie ticket prices. higher spends on entertainment. Banks. filmmakers and artistes never had it so good. 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. have ensured that the industry is barely one-tenth of the US filmed entertainment market. The changes in the way Indian films are now produced and marketed have not only .600 crore through 2012. however. India is the largest producer of films in the world. corporate houses. But those unfamiliar with Indian films might be wondering: what‘s all the song and dance about? Releasing more than 1.88 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. 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. the film sector is poised to record an annual growth rate of 13 per cent to Rs 17.

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

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

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

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

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

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

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

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

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

....41 5..........................................30 2.36 ...... WEEKLY SHARE OF DISTRIBIUTERS...........99 LIST OF TABLES 1.......32 3.......... E-TAX ON BOLLYWOOD MOVIES................. TOP GROSSNG MOVIES............. TERRITORY WISE BUSINESS WEIGHTAGE................... WEEKLY SHARE OF MULTIPLEXES...........................33 4..........41 6..... MAJOR CIRCUITS IN INDIA......

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