[icernet] Bollywood cash registers lose their ring

[Arul Selvan]

The Indian film industry has lost close to Rs 300 crore on a gross 
revenue of Rs 3,900 crore in 02, recording a negative growth of 12% 
over the previous year, in what is possibly the first definitive measure 
of sputtering cash registers of the movie industry in the country. The 
good news is the forecast that the industry is likely to break-even 
within the next 18-24 months. Despite successes of the opulent Devdas 
and sombre Mr and Mrs Iyer, of very different genres, in 02, it was 
mainstream Hindi cinema that took the biggest blow, losing about Rs 270 
crore on gross revenue of Rs 1,650 crore.

The KPMG-Ficci study forecasts that the upswing and breakeven within 
18-24 months will be driven by consolidation, increased corporatisation 
and eventual integration of various components of the value-chain like 
production, distribution and exhibition. From the current 20%, the share 
of movies produced by large organised houses will grow to around 55% 
over the next five years. This, of course, is still far lower than the 
international ratio of films produced by large studios. Such a 
consolidation is likely to result in a reduction in the number of movies 
produced. every year from the current level of 1,100,-1,200 to less than 
1,000 leading to increase in average revenue per movie. This increase 
will be driven by a sustained increase in overseas viewership and 
growing market for crossover products  the likes of Bend It Like 
Beckham, Monsoon Wedding. According to KPMG-Ficci, the Indian film 
industry is likely to grow at a compounded annual growth rate of about 
19% to reach a gross revenue of Rs 93,00 crore in 2007.

Source:
http://economictimes.indiatimes.com/cms.dll/html/uncomp/articleshow?msid=43401544