‘Film industry to see new business models, revenue streams’

07 Sep,2011

By A Correspondent

Apex business chamber ASSOCHAM has said that the digital revolution is visibly impacting distribution and exhibition of films in India, as the industry marches towards completion of 100 years with a revenue projection of Rs 12,800 crore by 2015, up 56 percent from Rs 8,190 crore last year.

Rising disposable incomes, growing popularity of alternate delivery mediums, digitalisation of film distribution, and value-added services like movie on demand and pay TV are set to open up new revenue streams and business models, according to a recent study by The Associated Chambers of Commerce and Industry of India.

Digital cinema will enable worldwide release of films on the day one like television broadcast and shorten the theatrical window. From the demand side, increasing mobile and internet penetration is significantly changing consumption pattern of viewers within the country as well as in the Indian diaspora overseas, it said.

Over 1,000 films are produced every year in more than 20 languages, with regional cinema  Tamil, Telugu, Malayalam and Kannada  constituting a large chunk. Backed by 12,000 theatre screens, 400 production houses and a huge viewership, the country’s film industry is the world’s largest in terms of number of films produced and ticket size. It employs about 60 lakh workers, and will complete 100 years in 2013.

Nearly 14 million Indians (about 1.4 percent of the population) go to the movies every day.Box office collections currently contribute about 80 per cent of total film revenues. But technological advancements like digitalisation, onset of next generation networks and availability of sophisticated devices to access media are contributing to a growing chunk of ancillary revenues that comprise about 15 percent of film revenues.

Indian cinema is undergoing remarkable changes from where it began. The aggressive expansion of multiplexes, access to organised funding, foray of leading corporate houses into film production and exhibition, and popularity of digital cinema prints have been some remarkable changes seen over the last decade.

The ASSOCHAM study said there is requirement of more than 20,000 screens, and multiplex penetration is expected to improve further with the government allowing 100 per cent foreign direct investments through the automatic approval route.

Though the number of multiplexes is rising, the average number of screens is extremely low in India at 12 screens per million compared to 117 in the United States. The film industry loses Rs 300 crore to 400 crore a year due to piracy and there is a shortage of world-class institutions to provide training in film and media.

With growing viewer expectations in terms of content’s quality and variety, filmmakers need to gear up and leverage global audiences as well, besides making efforts to gain mindshare at international film festivals, said the study.


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