The name is a portmanteau of Bombay (the former name for Mumbai) and Hollywood, the center of the American film industry. Though some deplore the name, arguing that it makes the industry look like a poor cousin to Hollywood, it seems likely to persist and now has its own entry in the Oxford English Dictionary.
Bollywood is commonly referred to as Hindi cinema, even though Hindustani, the substratum common to both Hindi and Urdu, might be more accurate. Bollywood consists of the languages of Hindi, Urdu and English. The use of poetic Urdu words is fairly common. The connection between Hindi, Urdu, and Hindustani is an extremely contentious matter.
There has been a growing presence of Indian English in dialogue and songs as well. It is not uncommon to see films that feature dialogue with English words and phrases, even whole sentences. There is a growing number of English films. A few films are also made in two or even three languages (either using subtitles, or several soundtracks).
Bollywood films are generally musicals, and are expected to contain catchy music in the form of song-and-dance numbers woven into the script. A film's success often depends on the quality of such musical numbers. Indeed, a film's music is often released before the movie itself and helps increase the audience.
Indian audiences expect full value for their money, with a good entertainer generally referred to as paisa vasool, (literally, "money's worth"). Songs and dances, love triangles, comedy and dare-devil thrills all are mixed up in a three-hour-long extravaganza with an intermission. Such movies are called masala films, after the Hindustani word...