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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

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

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.

ABSTRACT

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

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.

CHAPTER 1 INTRODUCTION TO BOLLYWOOD ECONOMICS The Bollywood Film Industry


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

Bollywood seem like a derivation from Hollywood (Dwyer, 20055). If one is buying an original pair of Nike shoes, one would not expect the original form to be the same as the imitation ones. In fact, people usually regard original products as superior to their imitations. Likewise, Bollywood is often considered as subordinate to Hollywood, mainly because the industry is taking place in a developing country, India. Despite the displeasure of those in the film industry however, the name was used by the media and later used widely. It was even included in the fifth edition of the Oxford English Dictionary (Chopra, 2007).

Importance of study of Bollywood Economics


When Rupert Murdochs STAR network tried to penetrate into the Indian entertainment industry, he prompted the Indians to set up their very own satellite channel called Zee TV (Tyrrell, 19996). With the initial aim of setting up Zee TV to counter Western programmes, it had indirectly introduced new jobs opportunities to the Indians. This venture not only provided new jobs for the Indians in the entertainment sector, but also those industries related to it such as fashion industry. Also, with Zee TV, the entertainment industry is able to go beyond India and into the worlds entertainment market. This would have benefited the local economy. In 2006, a PricewaterhouseCoopers report, The Indian Entertainment and Media Industry, estimated that the Hindi film industry had grown at an incredible 20% in the previous year and predicted similar growth for the next 5 years. The industry, estimated at 68 billion rupees ($1.5 billion) in 2005, was projected to reach 153 billion rupees ($3.4 billion) by 2010 (Chopra, 2007). From this, we

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Dwyer, R. (2005). 100 Bolywood Films. London: British Film Institute Tyrrell. H. (1999). Bollywood versus Hollywood: Battle of the Dream Factories, in Tracey

can see how the Bollywood film industry contributes substantially to the Gross Domestic Product (GDP) of India.

Influence beyond Its Borders

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

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

Kripalani, C. (2006). Trendsetting and product placement in Bollywood film: Consumerism through consumption. New Cinemas: Journal of Contemporary Film, 4, 198-215. 9 Boltin, K. (2003). Saathiya: South Asian cinema otherwise known as Bollywood. Metro Magazine, 136, 52-54.

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

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Hypothesis

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

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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.

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

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Van Der Heide, W. (2006). Bollywood Babylon: Interviews with Shyam Benegal. New York: Berg. 14 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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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. Bachchan was the brooding loner, with very little time for song and dance, and no hesitation in taking the law into his own hands to ensure justice, which the system had failed to provide, was meted out to deserving criminals. (Bose, 2006, p. 268) Such films usually reflect the pent up anger of that generation, in view of the negative societal conditions. Finally, in the late 1980s and 1990s, films depicting young romance emerged with the productions such as Yash Chopras Chandni in 1989 and Karan Johars Kuch Kuch Hota Hai in 1998 (Kripalani, 200615). The development of Hindi films also reached a new height, when Lagaan (2001), a film written and directed by Ashutosh Gowarikar, was nominated for an Academy Award for the Best Foreign Language Film. The film had set the benchmark of success for future films of the new era to follow suit. As said by Noel Rands, an actor in Lagaan, the film was Bollywoods Crouching Tiger, Hidden Dragon. It gave a different dimension to Bollywood internationally.(Bose, 2006, p. 34516). The development of the Hindi film industry seems to be relatively progressive. However, yet unknown to many, in the 1990s, most Hindi films were believed to be funded by dubious money (Athique, 200817). The claim meant that the films were produced by using money gained from criminal and illegal activities such as tax avoidances in India. Underground figures usually made the decisions in the production of a film. They may even allow small businessmen

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Kripalani, C. (2006). Trendsetting and product placement in Bollywood film: Consumerism through consumption. New Cinemas: Journal of Contemporary Film, 4, 198-215. 16 Bose, M. (2006). Bollywood: A History. Gloucestershire: Tempus Publishing Limited.
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Athique, A. (2008). The global dynamics of Indian media piracy: export markets, playback media and the informal economy. Media, Culture and Society, 30(5), 699-717.

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to become their own film producers whereby famous actors and actresses act in the films. 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, theatre owners will charge the distributor a very unreasonably high rent for the usage of the facility to screen the films. With the taxes, unreliable feedback from the box office and also competition among the different players from the industry, the distributor fails to earn enough capital to cover the production costs. As a result, these distributors have to turn to illegal sources so as to raise money. Illegal sources are private investors mostly from the construction, jewelry and associated trades. To quote from the article by Athique (2008), 18not only are there such high returns in lending money to film producers, 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, thieves, criminals and underworld dons attempting their hand in the film industry. Living in fear of being threatened or even killed by these underground figures, actors, actresses, directors and producers have to obey every single word of these investors.

How is our study unique?

The study gives a complete overview of bollywood economics along with alternative methods and case studies. Highlights changing trends in bollywood business with the helpof statistics. Explains anomalies in terms of economic factors.
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Athique, A. (2008). The global dynamics of Indian media piracy: export markets, playback media and the informal economy. Media, Culture and Society, 30(5), 699-717.

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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, masal movies. This term, originally coined by theorist Rosie Thomas, 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, a seemingly inexorable combination of genres, narratives and points of view (Boltin, 200319). The location of a Hindi film production may differ from one film to another, depending on the demands from the script, availability and preferences of the producers or directors. However, typically, filming takes place in Mumbai, with occasional shootings in foreign countries. One characteristic of a Bollywood film is that most films are just like musicals. There is a minimum of six to eight songs in a Bollywood film. The actors often take up familial roles; such as the father or son. They would usually have to know how to dance, fight and even do comical scenes in the film. The song and dance segments require a major portion of the films budget as the setting for these segments are usually very well-equipped and lavished (Srinivas, 2002).
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A setting can take on days to be created and built just for a few minutes of

song and dance. Usually, Bollywood film takes up about three to three and a half hours. Hence, 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. This has become a

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Boltin, K. (2003). Saathiya: South Asian cinema otherwise known as Bollywood. Metro Magazine, 136, 5254. 20 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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practice and the Hindi audience group has been so used to it that if the break gets over the fifteen minutes maximum interval, they start to get restless and may even leave their seats or start chatting loudly with their companions. 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, 200221). Technology enabled the Hindi film industry to grow. With sound, the signature of a Hindi film allowed audiences to enjoy the music of the songs to which the actors danced to (Chopra, 2007). These film features of music and dance were and are still the central feature of the films. When one mentions Bollywood, the many dance scenes and enormous wardrobe comes to mind. It is the famous trademark of Hindi films. In 1930s, Hindi films dominated the market amongst the other Indian language movies. Between the 1930s and the 1940s, films would have as many as forty songs. However, in 1950s, the number of songs per film dropped to less than 10 per film (Chopra, 200722).

Bollywoods Main Players


Script writers and directors helped to increase the popularity of the Bollywood cinema through their works. Script writers usually focused on the Indian culture, society, politics and history when writing the script. It is very unlikely to offer new stories to attract worldwide audiences. Hindi films lack of innovative ideas. Only in recent years Bollywood managed to gain more popularity through the influence of Anglo Hindi films such as Bend It Like Beckham, Pride and Prejudice, Hollywood Bollywood and East is East

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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. 22 Chopra, A. (2007). King of Bollywood Shah Rukh Khan and The Seductive World of Indian Cinema. New York: Warner Books

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(Minocha & Stonehouse, 200623). The script-writers also have the discretion as to what to be included in the films. For example, C.N. 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, 2003). Directors, just like the script-writers have the freedom to steer the direction of the films to the ways they want them to be. For example, Anand, C. who has overtly declared himself as a leftist has managed to create films which glorify war. 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, 199824). Shyam Benegal is another director who has been honored in India on many instances. His films are described by the Prime Minister of India, Dr Manmohan Singh as being distinguished, innovative and socially conscious. Benegals work shows woman to be intelligent, powerful, determined, yet humane and compassionate. It is unlike the traditional films where woman were casted as subservient and docile females (Heide, 200625). Another important main player in Bollywood are the producers. Without them, the movies are not produced for the audiences. In the 1960, the Film Finance Corporation (FFC) was formed. The FFC was initially responsible for assisting and promoting the mainstream film industry, but became, 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, 2006). The films produced by FFC were mostly in regional language instead of being solely in Hindi.

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Minocha, S., & Stonehouse, G. (2006). The learning trap: a Bollywood frame for strategic learning. Management Decision, 44, 1344-1362. 24 Chakravarty, S. S. (1998). National identity in Indian Popular Cinema 1947-1987. New Delhi: Oxford University Press. 25 Van Der Heide, W. (2006). Bollywood Babylon: Interviews with Shyam Benegal. New York: Berg.

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

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a film based on the films estimated popularity and revenue payback. At times, the distributors will sell the distribution rights to overseas distributors before the release of the film, during the release of the film or even after the release of the film (Minocha & Stonehouse, 200628). Bharat Shah also known as Mr. Moneybags was the leading financier and distributor of Hindi films. He is a diamond merchant whom finances Hindi film, financing a hit film called Devdas (Chopra, 200729). Audiences serve as the consumers of Bollywood industry. Audiences to the Hindi films differ from class, religious background and age. To the Indian audience group, Hindi films are similar to variety shows. It is common for the audience to comment loudly on the films during its screening, which is not typical in movie screenings in other parts of the world. Songs and dances in the Hindi films also add spice to the film. For the Indian audience, Hollywood movies are too short and boring as usually, there is nothing else other than the conservations between the actors and actresses (Srinivas, 2002). Besides, the viewing of a Hindi film for the Indian audience is like a gathering event for the family. They watch the film in big groups of around eight to ten people of all ages, from different generations. The female group of the Indian audience, in particular, would watch an earlier show with their friends or female companions but when with their families, they will go for the evening show. In general, going to a movie alone in the Indian culture is like an anti-social or unnatural act and it is common for a person to view a film several times as the person watches the film with a different companion group each time (Srinivas, 2002).30

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Minocha, S., & Stonehouse, G. (2006). The learning trap: a Bollywood frame for strategic learning. Management Decision, 44, 1344-1362 29 Chopra, A. (2007). King of Bollywood Shah Rukh Khan and The Seductive World of Indian Cinema. New York: Warner Books. 30 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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Furthermore, the Indian audience may do selective viewing. For example, if the viewer finds the song and dance sequences of the film boring, they may leave the theatre and only come back when the scene has moved on. It is also a common practice for the Indian audience to leave the theatre before the film has fully ended. 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, without the rolling of the film credits (Srinivas, 200231). The audiences may watch the same movie but the meanings they give to the movie may differ. They are not passive audiences but usually relate themselves to the actors and actresses in the films they are watching. For example, 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, like the untouchables. However, other audiences will end up emphasizing the need to preserve the caste system which is an important aspect of the Hindu religion, in order to avoid chaos and fighting as shown in the movie (Dissanayake, 200332). Lastly, another important player of the Bollywood industry is the Board of Censor. In making a film, certain social rules must be observed. For example, in Amar Akhbar Anthony where the three siblings are separated and brought up by different family (Amar a Hindu family, Akhbar a Muslim family and Anthony a Christian family), the women they loved come from the same religious background as themselves. No intermarriages were included in the plot as the director was worried that the film may not get past the Board of Censor

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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. 32 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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since the latter might consider the content as carrying some 'disturbing' elements and cause unhappiness among the audiences (Chakravarty, 199833).

Bollywood: Yesterday, Today and Tomorrow

In this section, we would be having a general discussion on the various points mentioned earlier. Firstly, in our view, the term Bollywood, although disliked by mainplayers of the industry itself, is not a degrading way of labeling the Hindi film. The storyline, props used in, or even the feel of the films differ from Hollywood films. There are certain elements in Bollywood films which cannot be found in Hollywood today such as the song-and-dance sequences (unless its a musical). While Hindi films are a genre on its own, perhaps this term Bollywood can be seen as a strategic branding label of the industry- it sounds catchy, popular and it might be able to tweak the curiosity of impressionable masses to watch the films. Secondly, the Hindi film industry has long started back in the 1910s. The production of the first silent film Raja Harishchandra(1913), by Dhundiraj Govind Phalke, seems to open the doors to many possible future chances in the Hindi film industry. In March 1931, the first Indian sound film was produced. In our opinion, 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. Perhaps, 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, as it not only reduces the production time, sound communication also aids in better understanding of the film. Non-verbal communication may be important; however, verbal communication allows better understanding and also gives better exchange of information from the
33

Chakravarty, S. S. (1998). National identity in Indian Popular Cinema 1947-1987. New Delhi: Oxford University Press.

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actors to the audiences. 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. Also, success of the Hindi film industry outside India can be considered as relatively slow. Although its development started early in the 1900s, 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. In an attempt to differ from the Hollywood movies, songs and dances are very often found in Hindi films. This allowed Bollywood films to be a distinctive genre of its own, but at the same time, this may be the very fact that limits foreign viewership. For instance, one who is used to the fast-paced plots, narratives which are somewhat close to real life situations, might find that Bollywood films have narratives which are unnecessarily draggy and too melodramatic, especially so when film protagonists break out into songs every now and then, hence often disrupting the flow of the story. Perhaps now, with the advent of better technology to improve film productions, together with the rise of globalization and tourism industry, Bollywood films have increasingly been garnering international interest as they serve as a source of snapshots of the culture and life in India, in a more spectacular manner. The types of narrative in the films have also expanded from nationalistic and mythological ones to that of love and romance. Such a generic type of narrative is one that the international viewers could relate to better, therefore contributing to the increase of the films appeal. 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. The widespread viewership of Bollywood films meant that the Hindi film industry could earn revenue from the box offices of foreign countries. Thus, this allows for more investments in film productions, such as shooting scenes at locations

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

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

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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)

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But a approximation can be made as follows :

Lets look into the above in some detail. Exhibition: Multiplexes: With the rise of Urban/City Multiplexes bulk of the business comes from these Multiplexes only. 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, 5th June 2009. Producers/Distributors will get 50% of the nett collections from the multiplexes in the first week, 42.5% in week 2, 37.5% in the third week and 30% in and after week 4. An additional 2.5% 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, Big, Inox, Fame, Cinemax and Fun) cross Rs. 17.5 crore during the entire first run of the

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film. Conversely, if any film released with more than 500 prints collects a total of less than Rs. 10 crore across the multiplex properties owned and operated by the six national chains, a rebate of 2.5% for weeks 2 and 3 will be given to the chains by the producers/distributors concerned. The reason Multiplexes want to keep more shares going into later weeks is because(and also in general), 1) The number of audience decreases as weeks go by but the cost of running the show remains same.

2) The cost of maintaining the Properties is a lot and they think they deserve the premium for the quality they provide to the audience. For example if a movie does the Industry Standard business week after week we can get the below kind of Shares from the Multiplex system(using the above table):

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

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fixed rate and the rest of the revenue (after subtracting the rent) goes directly to the producer. 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. Lets take a few examples here, Lets assume a given Single Screens charges 20,000 rupees per day as its rent for running full shows of a movie. The maximum revenue the movie can do with full capacity is say 100,000 per day, now by the end of the first week: 1) Suppose movie has done 100% full week the nett revenue will be 7*100,000 = 7,00,000 and the rent will be 20,000*7 = 1,40,000. The share % going the producer will be (7-1.4)/7 = 80%. 2) Suppose movie has done 70% full week the nett revenue will be 7*100,000(.7) = 4,90,000 and the rent will be 20,000*7 = 1,40,000. The share % going the producer will be (4.9-1.4)/4.9 ~ 71%. 3) Suppose movie has done 50% full week the nett revenue will be 7*100,000(0.5) = 3,50,000 and the rent will be 20,000*7 = 1,40,000. The share % going the producer will be (3.5-1.4)/3.5 = 60%. 4) Suppose movie has done 30% full week the nett revenue will be 7*100,000(0.3) = 2,10,000 and the rent will be 20,000*7 = 1,40,000. The share % going the producer will be (2.1-1.4)/2.1 = 33%.

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Now there might be different rent charges for different single screens, the screens of Bihar are the cheapest and the ones in the Delhi region are the costliest. But we get an idea that a movie gets its share from single screens depending on how it has done there, it can go as high as 80% and go as low as 35% depending on how it has done there. But in general movies which do well in Single Screens get around 6065% share from the total net revenue. If we take an average of the shares from the 3 Major Theatrical Revenue sources which are, 6 National Multiplex chains ~ 45-46% share. The Independent Multiplexes across India ~ 50% share. Single Screens ~ 60-65% We will get around 50-55% share average, granted the movie has done uniformly well in plexes and single screens and also took a decent opening and then trended by industry standard (ie what most big hits do). The rest 45-50% of the nett is kept by the Multiplexes.

TOP GROSSING MOVIES OF LAST TWO DECADES:

Film Dil Ghayal Saajan Beta Aankhen Khalnayak Darr Hum Aapke Hain Kaun Mohra Dilwale Dulhania Le Jayenge Karan Arjun Coolie No1 Raja Hindustani Jeet Ghatak Agni Sakshi Saajan Chale Sasural Border Dil To Pagal Hai Ishq Pardes Ziddi Hero No1 Judwaa Kuch Kuch Hota Hai Bade Miyan Chote Miyan Pyaar To Hona Hi Tha Pyaar Kiya To Darna Kya Soldier

Year 1990 1990 1991 1992 1993 1993 1993 1994 1994

Nett Gross 10,00,00,000 9,50,00,000 10,00,00,000 13,00,00,000 14,00,00,000 12,50,00,000 10,75,00,000 69,75,00,000 12,50,00,000

Gross 18,00,00,000 17,00,00,000 18,00,00,000 23,50,00,000 25,25,00,000 21,50,00,000 19,25,00,000 123,00,00,000 21,50,00,000

Adjusted Gross 22,72,00,000 21,46,00,000 21,44,00,000 26,40,00,000 26,77,00,000 22,79,00,000 20,41,00,000 309,26 21,50,00,000

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

61,00,00,000 29,00,00,000 16,00,00,000 48,00,00,000 17,25,00,000 16,50,00,000 15,50,00,000 14,50,00,000 35,00,00,000 28,00,00,000 17,25,00,000 18,00,00,000 16,50,00,000 16,00,00,000 15,00,00,000 45,25,00,000 20,00,00,000 17,75,00,000 16,25,00,000 14,50,00,000

106,50,00,000 52,00,00,000 28,25,00,000 85,00,00,000 30,50,00,000 29,25,00,000 27,00,00,000 25,50,00,000 61,00,00,000 48,00,00,000 30,00,00,000 30,00,00,000 29,25,00,000 28,00,00,000 26,50,00,000 76,75,00,000 35,00,00,000 30,25,00,000 28,25,00,000 25,50,00,000

267,77 120,69 71,03 207,78 74,56 71,50 66,00 62,33 149,11 117,33 73,33 73,33 71,50 68,44 64,78 182,54 83,25 71,95 67,18 60,64

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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

8,75,00,000 28,00,00,000 24,00,00,000 20,00,00,000 17,25,00,000 9,25,00,000 38,00,00,000 33,25,00,000 22,25,00,000 20,00,00,000 18,75,00,000 75,50,00,000

15,75,00,000 46,50,00,000 40,00,00,000 32,50,00,000 28,25,00,000 16,75,00,000 61,50,00,000 54,25,00,000 37,25,00,000 33,00,00,000 31,00,00,000 130,25,00,000

18,76,00,000 107,68 92,63 75,26 65,42 19,95,00,000 138,76,00,000 122,41,00,000 84,05,00,000 74,46,00,000 69,95,00,000 286,55,00,000

Hit Hit Hit Semi Hit Above Average Hit Blockbuster Super Hit Semi Hit Above Average Average All Time Blockbuster

2001 2001 2001 2002 2002 2002 2003 2003 2003 2004 2004 2004 2004 2005 2005 2006

47,00,00,000 29,00,00,000 21,00,00,000 32,50,00,000 22,00,00,000 19,50,00,000 42,50,00,000 35,00,00,000 24,50,00,000 40,00,00,000 33,00,00,000 29,50,00,000 29,00,00,000 43,00,00,000 35,75,00,000 80,25,00,000

78,50,00,000 47,00,00,000 36,25,00,000 53,50,00,000 37,00,00,000 32,00,00,000 68,00,00,000 50,75,00,000 39,00,00,000 58,00,00,000 48,00,00,000 43,00,00,000 42,00,00,000 61,75,00,000 50,50,00,000 111,75,00,000

172,70,00,000 103,40,00,000 79,75,00,000 112,10,00,000 77,52,00,000 67,05,00,000 130,09,00,000 97,09,00,000 74,61,00,000 100,08,00,000 82,82,00,000 74,20,00,000 72,47,00,000 93,69,00,000 76,62,00,000 146,78,00,000

Blockbuster Hit Semi Hit Hit Super Hit Above Average Blockbuster Hit Average Super Hit Hit Hit Hit Super Hit Hit Blockbuster

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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... 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

69,25,00,000 71,00,00,000 52,00,00,000 51,00,00,000 50,00,00,000 45,75,00,000 41,75,00,000 40,00,00,000 79,42,00,000 70,75,00,000 67,26,00,000 61,19,00,000 62,48,00,000 49,74,00,000 47,78,00,000 43,88,00,000 114,67,00,000 86,78,00,000 68,48,00,000 61,80,00,000 59,02,00,000 56,41,00,000 51,77,00,000 44,42,00,000 202,57,00,000 66,89,00,000 62,94,00,000 60,69,00,000

97,00,00,000 95,00,00,000 72,50,00,000 71,25,00,000 71,00,00,000 63,50,00,000 58,50,00,000 55,50,00,000 110,50,00,000 98,00,00,000 87,50,00,000 85,75,00,000 75,50,00,000 68,75,00,000 66,25,00,000 61,50,00,000 155,00,00,000 117,00,00,000 91,75,00,000 85,50,00,000 82,50,00,000 77,00,00,000 69,75,00,000 60,00,00,000 269,50,00,000 89,00,00,000 83,75,00,000 81,25,00,000

127,40,00,000 124,78,00,000 95,22,00,000 93,58,00,000 93,25,00,000 82,09,00,000 76,84,00,000 72,90,00,000 133,21,00,000 118,14,00,000 105,48,00,000 103,37,00,000 91,01,00,000 82,88,00,000 79,86,00,000 74,14,00,000 170,50,00,000 128,70,00,000 100,92,00,000 94,14,00,000 90,75,00,000 84,70,00,000 76,25,00,000 66,00,00,000 269,50,00,000 89,00,00,000 83,75,00,000 81,25,00,000

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

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

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The various Territories for Hindi Movies in India are:

There are also some other very small territories like Assam, Orrisa, Tamil Nadu, Kerala and Andhra .

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Overseas Theatrical Share: The Overseas Theatrical Market is also of very high importance. The Overseas Numbers are always given in Gross rather than in Nett.The Major Markets are USA,UK,UAE and Australia as of now. The Shares from USA are around the 50% mark, that from UK around 35%. Overall Overseas shares for movies are around 42-45% of the total Gross. Satellite: Satellite bid prices have been off the roof for most of their history. Most of the deals are done before the movie is released, though if the satellite rights are not sold by the time the movie is released then the price is definitely effected by how the movie has fared on the Boxoffice.

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Other Rights: DVD and Music are the most prominent from of extra revenue a movie can earn. There are industry prices for most of these, though it too depends on the scale and performance of the movie too.

Distribution Models Followed In Bollywood


1. Outright Sale of a movie As it depicts, in this scenario the movie is sold outrightly to a distributor who will look after the revenue and costs after the deal. There is always a clause that a certain print and advertisement costs and way in which this cost will be borne by the producer. Generally producer would add up a margin and sell the movie. Loss or profit is all on the onus of distributor here. All kinds of rights sold and revenue generated from theatrical business would go to distributors. So the entire risk of a movie is borne by distributor. If this worldwide distributor earns profit, the movie is plus and if not flop. Case in point MNIK. 2. Territory Sale - In this scenario the producer himself distributes the movie to individual territories and hence the risk is with producer. Advantage with this scenario is that the margin cost which one single distributor would pay to a producer (which is generally high) would not be their in this case. 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). Hence, in this case whatever profit producer earns would be considered for quantifying the profit/loss of a movie. All revenue/rights/costs associated with the movie is earned/borne by the producer. Case in point Almost every movie of YashRaj banners, as they distribute themselves. 3. Theatrical Distribution Only In this scenario the producer sells only the theatrical rights, retaining every other rights with him/her. Generally

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

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Revenue Theatrical Rights 77 cr. Music Rights 15 cr. Game copyright 5 cr. Merchandise and promotions 14 cr. DTH/DVD 7 cr. (Expected or more) Satellite Rights 35 cr. So in all around 170 cr. revenue would be earned by Red Chillies. All in all Red Chillies is at Break-Even already. So anything above 155 cr. theatrically will start giving returns to Red Chillies and Eros both, (which if we assume profit-share ratio of 50% between Eros and Red Chillies) theatrical business that is. All we can say right now is that a theatrical business of 155 crores would make the movie green for ALL.

DISTRIBUTION PATTERN FOLLOWED IN NEW DELHI REGIONS


As movie distribution markets worldwide are beginning to grow, it has become essential for content distributors to ensure maximization of profit and appropriate exposure level of the content. Addressing this topic at ASSOCHAM, moderator IPTV India Forum vice president Sujata Dev conducted a discussion with Eros International UK executive vice president Marcus Stuart, Hunters College head entertainment division Klaus Muller, P9 Integrated CEO Navin Shah and Movico Technologies senior advisor Andy Jacob.

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

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

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

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

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PLACE With the ever-inventive entrepreneurial energy in the entertainment world, people find venues for entertainment sales not only through traditional theatres and broadcast, but on street corners, in homes, over the Internet, over phones (caller tunes), through clubs etc. Options for delivery of the movie product are exploding: movies, games, music, news, and educational content. Distribution takes place through theatres, rental stores, sell-through stores, catalogues, non-theatrical groups, the Internet, even cell phones and the latest new media gadget.

PROMOTION Promotion is a powerful marketing tool, not only during the premier of a new product, but throughout its lifecycle. Producers create the endproduct for the consumer, but they seldom market that product directly to the consumer. They market their story to investors and distributors. Distributors market to exhibitors, retailers and sub-distributors. The theatre exhibitors, retailers, store clerks, and Internet strategists market to the end consumers. And then, to top off this complex stew, some consumers even market to other consumers their family, friends and co-workers.

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Overview of the film making business


This overview is required to understand the exact motivation behind the promotion and publicity of a movie. In general the movie making business can be summarized as follows: The scriptwriter or director or a producer comes up with a concept. The producer tells the scriptwriter to create a script based on this concept. The producer then officially hires his core team of director, scriptwriter, music director, lyricist, editor, cinematographer and choreographers. The cast for the film is decided based on the requirement of the script. This process is called casting. Location hunting is done for shooting the film. The director gives an estimated budget and schedule to the producer for the film shooting. The producer arranges finances from financers based on this budget. The film is shot. The completed film is processed in studios and the film is finally ready for release.

At this stage the publicity and promotion phase of the movie begins for the producer. The main aim of the producer is to sell his movie at a high price to a distributor. India is a vast country and the market has conventionally been divided in 9 territories by the distributors. A distributor from each territory buys the rights to distribute the film to the theatre owners in his territories. To get a high price from the distributors, the producers publicize the film in order to pull crowds to the theatres. The distributors buy the movie at a price suitable for their territory. 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, the banner,

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the director and actors). If the music of the film has done well in the market, the producer definitely gets a higher price from the distributors.

Before the release, the producers share some information of the movie to the distributors through trade guides. The trade guides give the distributors an idea about what the theme of the movie is, how the movie is being promoted, does the theme suit their territory, what theatres in their territory would be ready to screen this movie etc. The distributors compare different trade guides and decide which movie they want to buy. The distributors then release the movie prints to theatres. The distributors and theatre owners get money through the ticket sales. Producers also get a percentage share from the ticket sales.

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CHAPTER 7 Classifiction of Bollywood Movies


1) Classification of movies from a producers or distributors point of view The movies in India have been broadly classified into following categories for publicity purposes. A: Gentry movies. B: Mass movies Gentry movies are the ones which are made for the audience with special tastes. Movies for kids, college students, young couples etc fall in this category. These movies have done well recently due to the advent of multiplexes. 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, rickshaw pullers etc.

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. I. II. Entertainment movies. Art movies

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I.

Entertainment movies:

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

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

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

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

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CHAPTER 8 ANOMALIES IN BOLLYWOOD


With 30% the Population and One-Third the Movies,USA has 2 times more footfalls than India. Population : USA : 307 Million + 33 Million(Canada) = 340 Million India : 1115 Million North America has 30% of the Population Compared to India. USA Footfall : Year : 2010 Total Movies : 534 Total Gross in USD Millions : $10,565.4 Average Ticket Price : $7.89 Total Footfalls : 1339 Million ~= 134 Crore India Footfall : Considering Hindi is first language of approx 40% of People in India, Bollywood can be approximated to have similar impact in Cinema of India as far as Money inflow is concerned. So, a calculation for Bollywood can be done and then converted to a All India Number.Even if the number is more than 40%, still we are taking a conservative approach as it will give a bigger number for India Footfall.(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. Three Biggest Industries are:

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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, that 25 crore footfalls are only for Bollywood, so for All India they will be : 25/.4 = 62.5 crore. Even if we add 5 crore extra as error we get just about Half of USA Footfalls(134/2 = 67 crore). The Most telling figures are how the biggest historical blockbusters of Modern India dont outnumber their counterparts in USA in terms of Footfalls. 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). HAHK ~ 3.5 cr in BW or 9 cr All India 3 Idiots = 2.5+ cr in BW or 6+ cr All India Titanic = 12.75 cr Avatar = 10+ cr The Dark Knight = 7.5 cr And its not like India lacks exhibition prowess, USA has around 2000 Multiplexes and India has approx 850 Multiplexes and 11,000(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, though most metros have reached saturation by now. Infact,historically

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total number of footfalls have been pretty much decreasing in India every-year or just about Steadied.(As is the case in USA).2006 onwards has seen a better period relatively. Probable reasons for the above could be: 1) Poverty in India : According to a 2005 World Bank estimate, 41.6% of the total Indian population falls below the international poverty line of US$ 1.25 a day (PPP, in nominal terms 21.6 a day in urban areas and 14.3 in rural areas). So those 40+% who are thinking of how they will feed themselves, for them watching movies and that too in theaters is out of question. 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,which actually is similar to the Population of USA. 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, where they might spend the weekend evenings just talking or playing cards. The release of Hum Aapke Hain Kaun was a defining moment in the box office history of Hindi cinema. Hum Aapke Hain was a limited release on hand picked theatres by the makers of the film and prints were only given if theatres were upgraded to a certain level. Due to unparalleled demand for the film after its release, exhibitors upgraded their theatres to get prints of the film. This resulted in ticket prices going up heavily and the family audience which rarely ventured into cinema halls at the

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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.

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CHAPTER 9 PUBLICITY AND MARKETING OF BOLLYWOOD MOVIES


Publicity of movies
The publicity of a movie takes place at two levels: At producer level. At distributor level. At producer level the publicity of movies is done at a large scale with a national or international scenario in consideration. The budgets at this level are very big and the media used are teaser on TV channels and cinema halls, radio, national magazines etc. The star cast of the movie is also associated with publicity at this level. 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. Also, this publicity tries to reach the audience who may not have access to cable TV or radio. But the scope of this is publicity is limited to the distributors territory. The budgets allocated for such publicity are comprehensive but smaller than the budgets at producer level. The media used at this level are posters, hoardings, local newspapers etc.

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Music as a promotion tool


One of the most popular Indian music forms is the Filmi music. Hindi film industry, popularly known as Bollywood, along with Indian regional film industries, produces thousands of films a year, most of which are musicals and feature elaborate song and dance numbers. It is because of the huge popularity of the Indian film music that a large number of talented music directors, singers, composers and lyricists are attracted to the Indian Film industry. India is a land of great musical heritage. It is mainly because of the same reason that almost all our means of entertainment are inspired by music. The Indian film music has given a number of great music talents over the years. Some of the notable are Lata Mangeshkar, Asha Bhonsle, K L Sehgal, Mohd Rafi, Kishore Kumar, R D Burman, S D Burman, A R Rehman, Khaiyyam and many others.

Indian Film Music is said to have begun with the release of Alam Ara in 1931. In the early years of Indian cinema, the music was mainly classical and folk in inspiration, with some Western elements. The most fascinating part of Indian film music is its evolution with time. The Indian film music experts have always experimented with new things to cater to the changing tastes of music lovers. Another trend in Indian film music is that of integration of some popular regional languages such as Punjabi, Oudhi etc. Though in the process of evolution, music experts have flirted with western influences too yet the Indian flavor has always remained there.

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Earlier music was a part of the films and was mostly used only when the song gelled with the flow of the movies; but these days music is used as a vital tool for promotion of movies. Movie soundtracks are released as tapes and CDs much before the movie is released. Earlier, radio was the main media of Film music but with the coming of satellite TV and FM radio the scenario has completely changed. An elaborate music release function is held for even low budget movies as it is an important way of garnering attention. Any music release function is usually covered by the press and a few television channels (specially dedicated to covering news about the film industry).There are a lot of movies which have been box office successes despite a bad story line; music being their saviour. Movies like Aashiq Banaya Aapne,Gangster,Woh Lamhe, Jhoom barabar Jhoom, China gate, Bas Ek Pal Anwar,Dum,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. There is also a new trend where old hit songs are being re-mixed and used in movies to attract audience.Thus, music is used as an important promotional strategy for films these days.

Messages and styles used for promotion of films


The publicity of the movie is about highlighting appealing aspects of the movie to the audience. The messages a publicity campaign try to convey to the audience vary based on the type of film and the target audience. The style in which these messages are delivered also varies. However the style has to be attention grabbing and interesting enough for the target audience to think about the message or remember the message. Generally the messages are about the strengths of the movie. For

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

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Both Lagaan and Gadar enjoyed great success after the first week because of the good quality of the movies. Mouth to mouth publicity played a major part in the success of these movies. It is said that people in villages travelled in trucks and tractors to the cities to watch Lagaan and especially Gadar. We can safely conclude from these examples that if a movie successfully appeals to public emotion, then it is sure to generate a good mouth to mouth publicity.

To analyze various messages and styles used by film promoters, attributes and factors relevant for promotion of 3 different films of different genres were analysed from promotion and publicity point of view. Film 1 - JODHA AKBAR

Period film and a love story Sole release of that week. Star cast of Hritik Roshan and Aishwarya Rai. Hrithik - aishwarya chemistry after success of Dhoom 2 Ashutosh Gowarikar is the director with a great track record. Good music and meaningful lyrics. Larger than life portrayal with grand jewellery and costumes. Tie up with Tanishq for Jewellery. Extremely lengthy narration of the story. (4hrs) Controversy surrounding historical facts created buzz

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Film 2: HANUMAN Animated movie with an Indian mythological character as the lead. Kids movie. The cute face Bal Hanuman and his pranks appeal to child audience. Brand Hanuman used for merchandising. Hanuman fighting with devils in new Hollywood styles (Matrix) Movie making a statement on current state of affairs. Hanuman is already known to the Indian audience. (No need to make people aware about hanuman and his super powers.)

Film 3: OM SHANTI OM

Shahrukh Khan Catchy music. Recreation of the 70s setting. 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. Director Farah Khan - Reputed for good Choreography Sharukhs Six pack Abs hype Multi star song sequence - all hot girls created a hype Released during Diwali audience looking to kill some free time Controversy related to Manoj Kumar created hype.

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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 films publicity; Actors barely promoted their films, film-makers never ventured in-front of the camera and our main stream media couldnt care less.

Todays Bollywood presents a very different scenario. With over 1000 films releasing in a given year, all of them fighting for a common goal i.e. the box-office success, the multiplex domination it has become a necessity for those involved, to do whatever it takes to enforce that must-watch feeling among the masses in order to win this very competitive rat-race. And yes, the Indian media plays a vital role in this process.

Superstar Shah Rukh Khan is a fine example of the above. His perfectly knitted marketing tactics, be it non-stop television promotions, tying up with news-channels and popular online sites, birthday celebrations with the Indian media, the 6-pack (over-toned) tag line, cricket matches and last but certainly not the least, the OSO clothes line in short, King Khan took the job of film-marketing to a whole new level. And as a result, despite a weak storyline and very mediocre performances; Om Shanti Om ended up being a super duper box-office success.

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The mainstream advertising for movies, targeted at the end users is done via TV. Trailers, songs, star appearances on TV shows, interviews, "making of", reviews and movie news, all forms a part of the promotion strategies adopted by film makers. Movie trailers form the conventional part of advertising movies via television. Over the years trailers have been transformed into teasers, that give little info about the movie while buzz amongst the audience about the movie. Songs have long been used to generate interest in the movie. The recent years have seen use of a special category of songs called "item songs", songs which are shot and included in the movie especially for the purpose of advertising the movie and pulling in crowds. Nowadays, these item songs are shown on TV in full length just for advertisement purpose. They have no relation whatsoever with the movie's storyline.

Then there is "special appearances" made by the actors, actresses and even the people behind the scenes producers and directors on various TV shows, like talk shows, reality shows etc. This provides for a free publicity channel for the film makers.

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. It helps generate interest in the movie by giving away parts of the story and some scenes, making the viewers salivate to know about more.

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Other Major Channels of Marketing (apart from TV) Radio According to the Ministry of Information and Broadcasting, Govt. of India., there were approximately 132 lakh listeners of FM radio in the major metropolitan cities across India. Tie-ups with radio channels for marketing films are becoming increasingly common. Common promotional activities include on-air contests, interviews with film stars and music composers, shelling out complementary movie tickets, an option to meet the stars in person, music and movie premiere coverage, etc. Taking the case of the tie-up between Big 92.7 FM with Yashraj Films as its exclusive on air partner for the film Jhoom Baraabar Jhoom. The station featured interviews of Preity Zinta, Lara Dutta, Bobby Deol, and music directors Shankar-Ehsaan-Loy during the music premiere. Listeners could win a chance to be part of an exclusive music video 'Jhoom Baby Jhoom' featuring common people dancing to the title track, in addition to getting an opportunity to interact with the stars of the film. Prior to the launch of the movie, Big 92.7 FM provided special content around dancing, featuring dance experts from Bollywood, including the film's ace choreographer Vaibhavi Merchant giving dancing tips to listeners. Also, listeners got the chance to hear each of the stars of the film all day from 9 am - 7 pm. Listeners will also got the opportunity to win prizes like free music CDs 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'.

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

Internet The internet is increasingly emerging as a profitable medium to create hype and promote new film. There are approximately 30-40 million

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

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Overview of Indian Film Industry and Market


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

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Regional Films The major regional film industries are Tamil and Telugu, which together earn around INR 15 billion, followed by Malayalam, Bengali and Punjabi. With increased viewer exposure to a plethora of entertainment options on satellite television, the number of regional films produced annually has fallen from around 800, three years ago, to around 650 currently. English Films Big budget Hollywood films are beginning to make a mark, with their dubbed versions making inroads into the semi-urban and rural markets. On a cumulative basis, box office collections of foreign films grew in both revenues and number of releases, from INR 1 .5 billion from 60 films in 2003 to INR 1 .8 billion for 72 films in 2004. With around 12,900 active screens (down from 13,000 in 1990), out of which over 95 percent are standalone, single screens, India's screen density is very low. In contrast, China, which produces far less films than India, has 65,000 screens, while US has 36,000.

Alterative marketing methods


Teasers In the world of entertainment branding and promotion, where promos and trailers create viewer perceptions, teasers play a very vital role when it comes to films and their marketing.

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A teaser is all about illusion and aura. 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.

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 films release. This is because post week one, the fate of the film at the box office completely depends upon its content. Thus, by using effective teasers, producers seek to drive in maximum viewers for the film during the first week and generate maximum revenue.

Creating a teaser for any film involves huge financial risk. Hence, creating it effectively becomes a must. An effective teaser needs to create a lot of anticipation. It needs to mock, annoy and arouse. Ideas need to be spinned off differently and effectively. A well knitted teaser should not steal any scene from the movie; however it has to get the core idea right. The teaser of the low-budget American horror film The Blair Witch Project, released in 1999 showed an absolute black screen powered by a strong voice over. The voice over was filled with intense fear that generated post the completion of a summer project. The teaser does not speak anything about the film. It only throws a punch of fear at the audience, thus encapsulating the core idea of the film - fear. This is what an effective teaser is all about. It creates a mystery about the film thereby calling the viewers to watch the film and demystify the mystical.

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As aptly summed up by Frame by Frame creative director Anita Olan ,Teasers are always the best way to engage the curious viewer; and to tempt, engage, and create anticipation amongst the viewers, one need to build effective teasers. Also remember, its always ok to mislead. In fact deceive the viewer first, only to leave him with a surprise at the end.

Hollywood marketing strategies in India


With increasing literacy levels, the demand for international fare among the English-educated Indians is growing. Post-globalization, the wellheeled urban Indians, especially growing mid- and high-income segments, is rediscovering the magic of cinema in the plush multiplexes. And for them, Tom Cruise, Steven Spielberg and Julia Roberts are as good as Shahrukh Khan, Karan Johar, and Rani Mukherjee. Indian audiences watch Hollywood films for what they cannot get in Bollywood films. Indian films center on family and romantic themes and seldom do they offer big-ticket action or jaw-dropping visuals. Hollywood offers the latter, which is why films offering that style of entertainment do well.

As recently as 2005, foreign films accounted for only about 5 percent of about $1 billion in theatre tickets sold annually here. But Hollywood profits in India are growing at 35 percent a year, and the US film industry is becoming more aggressive.

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

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

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Co-branding and Merchandising


Co-branding is an arrangement that associates a single product or service with more than one brand name, or otherwise associates a product with someone other than the principal producer. The typical cobranding agreement involves two or more companies acting in cooperation to associate any of various logos, colour schemes, or brand identifiers to a specific product that is contractually designated for this purpose. The object for this is to combine the strength of two brands, in order to increase the premium consumers are willing to pay, make the product or service more resistant to copying by private label manufacturers, 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, children form the major audience. This means that brands targeted at children should be used to reap maximum benefit.

Also, it is mutually beneficial. 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 co-branded

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colours are also being made available at the multiplexes where the film is being screened.

Intelligent co-branding Using brands to promote movies can be more effective when the branding is in tune with the film. In the case of Krrish, no doubt the aura of the Superhero can be expected to rub off on the brand. However, 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. An important variable in co-branding is the fit between the movie and the brand.

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, and Krrishs character is all about protecting the world from enemies. Merchandising Now the story does not end with the leading man and lady living happily ever after. It goes to add T-shirts, mugs and other paraphernalia.

Be it the super hero Krrish, the common men turned heroes in Rang de Basanti, the romantic pair in Fanaah or the animated god Hanuman; they can be spotted on T-shirts, on your kids toys, around youngsters

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necks, even in your refrigerators and many more such places not marked for them earlier.

Riding on the popularity of these films, makers in India are going the George Lucas (Star War maker) way whose merchandise till date has reportedly touched $20 billion in estimated revenue. The figures in India havent skyrocketed to such heights but with the way things are shaping up, merchandising is fast making headway.

The reasons are more than the fact that merchandise is an established revenue stream; it not just serves as link between fans and brands but also provides a great publicity base and a recall factor for the movies.

The makers of Krrish tied up with Pantaloon Retail India Limited for manufacturing and marketing of Krrish merchandise. For Rang de Basanti the makers joined hands with Coke for exclusive limited edition coke bottles, which had the images of the stars on it. They also came up with a limited collection of Spirit of RDB T-shirts with Provogue. For Fanaah Yash Raj Films had three different products, including a pendant sported by Aamir Khan in the film. While Adlab films struck a deal with Mattel toys for the Superman toys apart from T-shirts, key chains and bags for Superman Returns.

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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.

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CHAPTER 10 COMPARISON BETWEEN MULTIPLEXES AND SINGLE HALL THEATRES


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

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

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Alternative modes of entertainment. Uncertainty over entertainment tax. Piracy. Television. The number of mulitplexes in India currently stand at 850 which is expected to reach 1,400 in 2013. Source: FICCI-KPMG M & E industry report 2009, KPMG Analysis Some additional statistics of Indian Film Industry business in India 1000 movies produced annually over the last 4 years (US $ 2.4 Billion in 2008) Revenues dominated by Domestic Box Office at 75%, 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, 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 1,000), it accounts for only 1% of the global film industry revenues. Inspite of being 90 years old industry, the Indian Film Industry was accorded Industry status only in 2000. In addition the unorganized methods of financing made the investors pay high rate of interest. Only recently the industry have got access to

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organized finance. With vertical integration taking place between producers, distributors, exhibitors, broadcasters and music companies, Corporatization is taking shape in the Indian Film Industry. At a time when single-screen theaters are dying due to lack of footfalls, 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. This fact provides for ample testimony to the increasing prosperity as well as Indian consumers willingness to pay for superior-quality entertainment. Given the prevailing demand-supply dynamics, one can believe that the sector offers high visibility for steady cash flows.

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 analysis shows that more than 70% of people prefer going to multiplex than a single-screen, but The bigger the mod, the greater the thrill is an old saying. In a country like India where people still feel and believe that a movie needs to have PAISA VASOOL value, 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. On the other hand, if a common middle class family comprising a husband, wife and two kids thinks of venturing out into a multiplex on a Saturday evening, the idea does not seems to pleasing, if you count the cost!

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

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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. Banks, corporate houses, internationally renowned production studios and even affluent investors are readily opening their chequebooks to fund the production of Indian movies. Scriptwriters, filmmakers and artistes never had it so good. But those unfamiliar with Indian films might be wondering: whats all the song and dance about? Releasing more than 1,000 movies a year, India is the largest producer of films in the world. Problems of low movie ticket prices, unorganised trade practices and rampant piracy, however, have ensured that the industry is barely one-tenth of the US filmed entertainment market, which is estimated at $35 billion. But the mushrooming of multiplexes, higher spends on entertainment, 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. According to the PricewaterhouseCoopers (PWC) Report on the Indian Entertainment and Media Industry 2008, the film sector is poised to record an annual growth rate of 13 per cent to Rs 17,600 crore through 2012. With projections like that, it is no wonder that investors have begun to smell the money that can be generated from this business. The changes in the way Indian films are now produced and marketed have not only

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made the business a more profitable one, but has also altered investors perception of the film business, which has traditionally been viewed as extremely risky.

BANKING INVOLVED IN FILM MAKING


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

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The situation is now a far cry from yesteryear when filmmakers were dependent on independent financiers who lent at 25-30 per cent interest. As for banks, lending against films is certainly more lucrative, with interest rates at about 12-14 per cent. Film funds, a new asset But returns from lending do not compare to the potential returns that can be earned through equity funding. After all, if a film is a success, a producer can recover his costs several times over. But one does not have to be a Yash Chopra to get a piece of this business. All one has to do is invest in a film fund. These funds mobilise money to invest in movie productions. While not all films are successful, the payoffs from those that are successful can be huge. If films are a risky business, then returns from the business have to be as high as any other risky asset, say, equity says Sheetal Talwar, Chairman and Managing Director, Vistaar Religare Film Fund, a venture capital fund recently set up to fund films. The fund would set up special purpose vehicles (SPVs) to fund each film project. 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. Pyramid Saimira plans to launch two such funds. One would merely finance a film and offer investors a return of 12-14 per cent. 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. We are giving investors with a high risk appetite an opportunity to take exposure to a different asset class. Investing in films is like investing in a junk bond, says P. S. Saminathan, Managing Director, Pyramid Saimira, highlighting the risk associated with film investing.

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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.

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

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

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

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

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CONCLUSION AND FINDINGS


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

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BIBLIOGRAPHY
Acknowledgements:
Marketing Management : Kotler,Keller,Koshy,Jha. Interview with Mr A K Pankaj: Film Distributor and owner of a weekly Film Newspaper.

Websites:
http://in.kpmg.com/press/pdf/22 March 2005 - CII-KPMG Entt Report.pdf http://www.mediaknowall.com/gcse/Blockbuster/MovieMarketing.html http://www.movieindustrymarketing.com/cgi-bin/gt/tpl.h,content=18 http://www.imdb.com/

Book References:

1.Alessio, D. & Langer, J. (2007). Nationalism and post colonialism in Indian science fiction: Bollywoods KoiMil Gaya (2003). New Cinemas: Journal of Contemporary Film, 5, 217-229. 2.Athique, A. (2008). The global dynamics of Indian media piracy: export markets, playback media and the informal economy. Media, Culture and Society, 30(5), 699-717. 3.Banaji, S. (2006). Reading Bollywood: The Young Audience and Hindi Films. New York:

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

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

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

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LIST OF GRAPHS

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