New Avenues of Revenue in Indian Cinema

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  • Topic: Film, Film production, Film producer
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  • Published : July 24, 2012
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R. Sunitha
Assistant Professor, VVISM
New avenues of revenue in Indian Cinema
“Indian media Industry is soon being recognized as the next sunrise industry after the growth of the Information Technology sector” - Subhash Ghai (renowned film maker) Abstract:
Indian cinema which has got the status of film industry in the year of 2000 is making 900 movies in a year with Rs.5, 000 crores of revenue per annum. The major revenue source for Indian cinema is domestic box office collections. But, of late the scenario is changing slowly and the film producers started searching for new avenues of revenue generation as the film production cost is growing enormously and the risk involved in movie production is going up. Introduction:

Now, we will discuss about few novel sources of revenue available for Indian cinema. There are many avenues like film based merchandising, co – branding, brand associations, in-film advertising, Home video, Global marketing opportunities, digital platforms, broadband movie release to name a few. Here the question arises is do Indian cinema really need some new sources of revenue when the industry is already making good business worth Rs. 5,000 crores. Yes, of course. The reason being the prime source of revenue for Indian cinema till date is collections from box office which account for more than 90% of its total proceeds. If the movie fares well everything goes on well for all the people who are involved in the business of film making and distribution, but if the other side happens entire money is lost. Most of the western countries if we look at, they are majorly dependent on Home video, Film based merchandizing and few other sources of revenue rather on box office. So, even if the movie turns out to be unsuccessful the producer is safe to the extent of cost of production at least. Now, if the similar thing can be adopted by Indian film industry in which rate of success is very low, it is assured of the production cost as a minimum irrespective of the success or failure of the movie. Having discussed the need of new sources of revenue for Indian cinema we will discuss the sources available in detail in the coming section. New sources of revenue:

In film advertisement: This revenue source is not of a recent phenomenon in Indian cinema. The noticeable instance of in film advertising can be witnessed prominently in Rishi Kapoor’s debut movie “Bobby” (1973) itself where he rides Rajdoot bike of Enfield motors. In fact, for Rajdoot also it was the launch. As far as the first of its kind placement can be seen in “An Evening in Paris” (1967) where lead actress sips cool drink from coke bottle trying not to cover the logo. From “Bobby “onwards every now and then in film advertising was flashed. BSA SLR bike featured in “Jo Jeeta Wohi Sikandar”, Mafatlal’s advertisement in a song sequence “Maine pyaar kiya” and Stroh’s beer verbal and visual mention in “Dilwale Dulhaniya Le Jayenge” are a few to mention. In the recent past the usage of in film advertising has increased. Producers are of the opinion that in film advertising will add something in terms of revenue. According to B. R. Chopra, “This kind of advertising helps producer to recover some of the costs of the film. In any case, in our films, we need to show characters driving cars, using mobiles, drinking tea, and using a number of other products, so why no benefit out of it?”. For instance Subhash Ghai the film maker of “Taal” was able to get back 20% of the production cost with a single product placement of coke in the film. B. R. Chopra of course has got benefited in the range of 3 to 4 crores by placing brands like ICICI Bank, Ford ikon, and Tata Tea in his “Baghban”. Few more to add up the line are Hyundai Santro and Castrol Engine oil in “Chalthe Chalthe”, 400 carts of real diamonds in Kaizad Gustad’s “Boom”. In film advertising has become popular in the corporate world also due to its inherent advantages like availability of stars for a...
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