INDIAN FILM INDUSTRY ANALYSIS(growth)
The Indian Film Industry has been one of the oldest segments of the Indian entertainment industry. The Lumiere Brothers brought motion pictures to India in 1896, and since then there has been no looking back. Today, India has the world's biggest movie industry that churns out around one thousand movies each year. The Indian Film Industry is witnessing mark improvements on all spheres - from the technology used in making films to the themes of the movies, exhibition, finance and marketing and even in its business environment. There is no doubt that the Indian Film Industry is finally getting corporatized in that sense. 2005 was a watershed year for the industry. Indian Film Producers are also looking overseas for co-production. And the future looks immensely bright with a number of theatres poised to go digital. The Television industry is also witnessing the mushrooming of more niche channels. Here again, emerging technologies such as broadband, Direct-To-Home (DTH), Direct-To-Theatre (DTT), Internet Protocol Television (IPTV) and digitalization will bring about more growth. The Indian Film Industry is expected to grow by 13% over the next years, i.e. to Rs.176 billion in 2012. This projection speaks volumes as regards the potential of the Indian Film Industry. The Indian Film Industry is the largest in the world in terms of number of films produced and the number of movie goers in a year. Approximately around 1000, as part of the films is produced every year in different languages, out of which 70% are produced in the Hindi language. Ironically, the revenue realized from these films is almost negligible compared to other global markets. The investment level in 2007 was in the order of Rs. 10,000 crores and a 19% p.a. growth is projected during the period 2007-2012. One of the major policy initiatives has been the Government of India granting "industry" status to the entertainment sector in India including the film sector in 2001. This allows the sector to access institutional finance and clean credit for new projects. Industrial Development Bank of India (IDBI) was the first to enter with a funding of Rs. 100 million with 16% p.a. interest rate. However, banking and institutional finance has not been forthcoming to the film industry even today. A trend towards increased viewership abroad has been observed in countries like Japan, Malaysia, Singapore and Middle East. In the recent past, as part of the cultural diplomacy, growing presence in prestigious film festivals and markets internationally has been encouraged and continued efforts are required in this direction for the film industry to -readily go global. The movement towards corporatization was inter alia the multiplex revolution, organized funding, foray of corporate, international co-productions, new marketing and revenue techniques. The multiplex revolution changed the entire concept of viewing cinema. PVR Limited was one of the pioneers of this revolution in India in 1997, with the launch of the concept "multiple choice of movies under one roof". This furthered by interior decor of international standard and state-of-the-art sound and technology witnessed new revenues at the box office. Financing, exhibition and distribution were directly affected. It also led to more organized and transparent box-office reporting. It is pertinent to note that even though the number of multiplexes is on the rise, the average number of screens is abysmally low when compared to other mature markets in the West. This segment has seen an influx of major private players like Adlabs, Inox, E-City Entertainment, Wave Cinemas etc. In 2005-06, Shringar Cinemas, PVR Limited and Inox went public and together, a sum of Rs. 4,144.45 million was raised during this period. Adlabs foray into the entire value chain of the film industry was a significant development in the Indian entertainment and media industry. The biggest crisis plaguing the industry is the...
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