INDIAN FILM INDUSTRY

Presented by:
• Akhil Maurya
• Shantanu Gaur
• Ambika Singhal
• Nitin Shankar
• Ankit Laddha
• Geet Sabarwal
 HISTORY
• Motion pictures came to India in 1896, when the Lumière Brothers'
Chinematographe unveiled six soundless short films in Bombay (now Mumbai).
This was just one year after the Lumière brothers

• India's first feature film – named "King Harishchandra" – was released in 1913. It
was made by Dhundiraj Govind Phalke (nickname: Dadasaheb Phalke, 1817-1944).
This was a silent movie.

• By 1920, film making had taken the shape of an industry.

• Ardeshir Irani released Alam Ara, the first Indian talking film, on 14 March 1931

• India's independence, the period from the late 1940s to the 1960s are regarded by
film historians as the 'Golden Age' of Indian).
 INDIAN FILM INDUSTRY


5000
3,825
4000 3,300
US D m illio n

2,825
3000 2,425
1,975
1,700
2000 1,413

1000

0
2004 2005E 2006F 2007F 2008F 2009F 2010F

Indian Film industry is valued at USD 1.8 billion which is expected to double by 2010
Contributes ~20% share of the entertainment industry
Largest film industry in the world in terms of number of movies produced
Digitization of movies and increase in the number of screens has enhanced the movie going experience
 Media and entertainment industry is valued at USD 7.8 billion and is expected to grow at 19%

 By 2010, the entertainment industry is expected to reach USD 18.6 billion

2.0% 0.3%
2.5%

Telev ision
Music
31.0% 42.0% Films
Radio
Print Media
Liv e Entertainment
Outdoor Adv ertising
0.8%
Internet Adv ertising
2.0%
19.4%
 Current scenario
• Indian Film Industry is one of the worlds largest with more than 1000
movie releases and over 3 million movie goers annually.
• In 2009, India produced a total of 2961 films on celluloid, which includes a
staggering figure of 1288 feature films.

Population 2009 1199 million

CDP per capita 2009 1043
Average USD/INR exchange rate 2009 1USD=43.81
Cross box office 2009 (million) Rs 80 200
Average ticket price 2009 24.73inr
Screen 2009 11389
Screen in multiplexes 1600
Digital screen 195
 Indian film industry
 Government initiatives have given a boost to the Film industry

 Industry status granted in 2001

 100% FDI allowed via automatic route

 Industry Financing

 Prior to receiving industry status

– Difficult to acquire finance

– Finances generally came from unorganized sector, which involved high costs

– Directors pre-sold the movie rights at ‘mhoorat’ stage, at a huge discounts

 Post receiving industry status

– Companies can go to public to raise money
– Eros International admitted to AIM in November 2006
– Banks have started financing
 FUTURE
• The Indian film and television industry is expected to reach a size of over Rs
60,000 crore in the next five years, says a report.

• The industry is projected to grow at a CAGR of 9 per cent and reach US$ 3
billion by 2014.
• The granting of industry status to the film industry will eventually allow
overboard financing of films, though this will result in production of fewer
films than at present

• Stricter enforcement of copyright law will help the film industry in its fight
with cable operators. 

• Some film production companies, such as Mukta Arts, have made public
share issues, thus keeping out of the world of murky financing
 Research
There have generally been six major influences that have shaped the conventions of Indian
popular cinema.

• The first was the ancient Indian epics of Mahabharata and Ramayana which have exerted a
profound influence on the thought and imagination of Indian popular cinema, particularly in its
narratives.
• The second influence was the impact of ancient Sanskrit drama, with its highly stylized nature
and emphasis on spectacle, where music, dance and gesture combined "to create a vibrant
artistic unit
• The third influence was the traditional folk theatre of India, which became popular from around
the 10th century with the decline of Sanskrit theatre
• The fourth influence was Parsi theatre, which "blended realism and fantasy, music and dance,
narrative and spectacle, earthy dialogue and ingenuity of stage presentation, integrating them
into a dramatic discourse of melodrama.
• The fifth influence was Hollywood, where musicals were popular from the 1920s to the 1950s,
though Indian filmmakers departed from their Hollywood counterparts in several ways.
• The final influence was Western musical television, particularly MTV, which has had an increasing
influence since the 1990s, as can be seen in the pace, camera angles, dance sequences and music
of recent Indian films. An early example of this approach was in Mani Ratnam's Bombay
 MOS of film industry
• Entertainment

• Emotional Content

• Return on Investment

• Inspirational and Motivating Factor

• Initial Promotion

• Creative Content
 SWOT
STRENGTH: WEAKNESS:
•Film production sector highly fragmented
•Large customer base
• Lack of cohesive production
•Low cost of production and high revenues
• Lack of distribution infrastructure
•Growing middle class with higher
disposable income • Lack of efforts for media penetration in
lower socio-economic classes

OPPORTUNITIES: THREATS:

•Rapid de-regulation in the Industry •Piracy, violation of intellectual property

•Rise in the viewership and the advertising
expenditure
•Increasing interest of the global investors
rights pose a major threat to the film
making companies.
• Lack of quality content has emerged as a
major concern because of the 'Quick- buck'
route being followed in the industry.