15 September 2007

The Indian Film Industry........Unraveling the Potential

'People who see our films feel happy’ .......
Yash Chopra.
[MD Yashraj films.]

Indeed, Bollywood's pulling power of romance, costumes, music, comedy and stories helping to propel Hindi language movies beyond the Indian Diaspora and into mainstream cinemas around the globe as well as reaching the world of marketing and advertising. Bollywood is doing damn good business overseas.

You hear again and again that Bollywood is the biggest film industry in the world, producing 800-1000 films a year. Total turnover of the industry cross 97 000 INR Millions mark in 2006. Actually this isn't strictly correct. It's the Indian film industry that produces that many films; Bollywood defined as commercial Hindi films produced in or around Bombay produces only about 150-200 films a year.

Unlike in the U.S., where the film industry has always been treated by the government as a legitimate business, in India for many years, the film industry was treated as a vice, and taxed egregiously, at rates between 25 and 75 percent. This is so despite the fact that the film industry is the second largest in the country in terms of capital investment, and the fifth largest in terms of people employed.

Moreover, the tax is not just one tax, but a whole series of them, affecting the producers, distributors, and exhibitors of films. States use taxes to protect local language cinemas, and the Indian government waives taxes on films that are deemed to be especially patriotic (recently, films like “Chak De India": were 'tax-free'. So the next time you see some uber-patriotic film and wonder how Bollywood got so patriotic all of a sudden, keep in mind that there's a profit-margin in there.)

The number of prints made for even big films is no more than 500 or so, including prints to be sent abroad. Compare to Hollywood, which releases big films on 3000 or more screens at once in the U.S. alone. One has to keep in mind, of course, that normal (i.e., non-multiplex) movie theaters in India are much larger than in America. A big movie theater in India can seat up to 2500 people.

Bollywood movies are produced and financed in a completely chaotic way. Here are the decentralized, flexible Bollywood system: The industry is neither vertically nor horizontally integrated in the manner of the major Hollywood studios or multinational entertainment conglomerates. 'Studios' within the Indian context are merely shooting spaces and not production and distribution concerns

The Bollywood film industry is big business. the average investment returns Bollywood movies make is between 40 to 50 % as the growth of industry expand , into new terrestrial sectors, the benefits of outsourcing, cross-trading and multi distribution of products and services are all key attributes to greater investment returns. With the higher degree o capital protection, the aim of the fund is to target an investment return of at least 12% p.a. the fund will benefit in the participation of profit sharing, with a view of maximizing the upside returns. The CAGR of Bollywood by 18 %.

The Love Legend : Yash Raj Films:

The second largest film industry of the world has contributed many talents – each brilliant in its own creative field. Very few, however, have enjoyed consistency in their creative endeavors and even fewer have managed to create an organization that has become an integral part of the entertainment business in India. Yash Raj Films (YRF) has merited this unique distinction.

The vision is to live up to the standards expected of the Number One Entertainment Company in India and the biggest brand of Indian Filmed Entertainment. Yash Chopra and Aditya Chopra are both committed to discover and groom talent in various aspects of filmmaking for the future.YRF already has 32 films to its credit and has major growth plans for the future. The enviable catalogue of films continues to yield higher returns for the company and with passing years becomes more and more valuable. It will not be an exaggeration to say that films from this company get the highest values from distributors and exhibitors, satellite & terrestrial channels, licensees and various other users of catalogue film repertoire. Collectively, the last 12 YRF productions have grossed in excess of 200 Million US Dollars worldwide. The 6 highest selling music albums of all times include 4 YRF productions.

In 2004, India’s biggest grosser were YRF Productions – ‘Veer-Zaara’ (worldwide box office gross Rs. 150 crores / US$ 33.33 million), ‘Dhoom’ (worldwide box office gross Rs. 65 crores / US$ 14.44 million) and ‘Hum Tum’ (worldwide box office gross Rs. 51 crores / US$ 11.33 million).

In 2005, India’s biggest grosser worldwide was ‘Bunty aur Babli’ (worldwide box office gross Rs. 84 crores / US$ 18.66 million), while ‘Salaam Namaste’ (worldwide box office gross Rs. 56 crores / US$ 12.44 million) was the highest grosser in the overseas. Two of biggest grosser of the year 2006 were YRF’s ‘Dhoom:2’ (worldwide box office gross 162 crores / US$ 36 million) and ‘Fanaa’ (worldwide box office gross 126 crores / US$ 28 million). ‘Kabul Express’ (2006), was YRF’s first film for an international audience – a new foray into this segment of filmmaking, with many more to come.

The Second Biggest grosser of the year 2007 were YRF’s Chak De….(still Counting the success on box office….on 6th week running successfully)

YRF is fortunate to have carved a niche for itself in Indian Cinema and being called the leading film production house of the country is humbling. The vision extends itself, from speaking to Indians all over the world, to reaching out to a global multicultural audience. The vision for the future is to produce around 7-8 films a year under the Yash Raj Films’ production banner while progressively, as YRF Studios, backing additional films to ensure a sizeable number of releases every year – each belonging to a different genre, each with the YRF stamp of quality and each vying with the other to be the top notch release of the year

Market Gimmicks Adopted By Yash Raj’s Films:

The most advanced audio and video recording and post-production facilities.
To reaching out to a global multicultural audience.
The vision for the future is to produce around 7-8 films a year.
Adopt New Technology and integrate it with forward as well as backward process.
Creating a Brand Awareness among Viewers by delivering quality product.
Hire big star cast and foreign location to attract youth Targeted group.
Focused On Professional approach towards Conception to Completion of whole process of film production.
The Flavors Of Indianisation, Value Ethics and new challenges is the core competencies of yash raj banners.
The Potential Market is Very high out of India, which is very good targeted through technology and quality product by Yash Raj‘s.
The Distribution and Promotional Activity is taking very seriously, that’s the main difference between other production house and yash raj’s.
Distribute the financial Risk among the cast as well as other capital provider.
The Marketing strategy is very focused and penetrated through various channel and which is make the difference between the King Of Romance Yash Raj and other production house

Please Mail Me for Full Article(PDF format).......