India's Bollywood Lures Silicon Valley Investors

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The lavish sets, lush locales and energetic song and dance sequences of
Indian movies are a far cry from the world of hi-tech software and
hard-nosed investing. But for some Silicon Valley entrepreneurs and venture
capitalists looking for options after the bursting of the technology bubble,
Bollywood represents a big opportunity. So far, investors have brought in
only a few million dollars, but experts say more is headed to an industry
which generated revenues of about 39 billion rupees ($856 million) in the
last financial year that ended in March. While that figure is flat against a
year earlier, revenues are forecast to grow at a compounded annual rate of
19 percent over the next four years, thanks in part to a rise in "crossover"
films, or those that appeal to local and overseas audiences. Investors are
being lured by low production costs and the potential to tap the global
market for Indian movies, which have won overseas acclaim in recent years.
The industry's international profile has been boosted by recent films with
Indian themes such as "Bend it Like Beckham" and "Monsoon Wedding," and the
Bollywood hit "Lagaan" which won a 2002 Academy Award nomination. The cost
of producing and marketing the average Indian film ranges from $2 million to
$4 million, a fraction of the average cost of a Hollywood film that ranges
from $70 million to $80 million, industry observers say.

Source:
http://www.reuters.com/newsArticle.jhtml?type=filmNews&storyID=4133472