Indian Media and Entertainment Industry

Indian Media and Entertainment Industry

The Media and Entertainment industry is one of the most booming sectors in India. The global entertainment industry is projected to reach US$ 1.8 trillion by 2015. Asian region expected to play a central role in it, with India poised to contribute about US$ 200 billion i.e. a sizable chunk of the global industry.

Media spend in India as a percent of GDP is 0.41 percent. This ratio is almost half of the world's average of 0.80 percent and is much lower compared to developed countries like US and Japan. This indicates the potential for growth in spends as the industry in India matures. As we move towards a more brand-conscious society, this is likely to get reflected in the future growth rates.

The Indian entertainment industry is growing at a very fast pace, the reason being that it is still at a nascent stage. Some symptoms of this changing reality are growing corporatisation of the Mumbai film industry, the financial muscle of the entertainment TV business, more joint ventures with international players and other ambitious plans by the major producers and exhibitors. After some international success with A.R. Rahman and Resul Pokutty winning Oscars for their commendable work in Slumdog Millionaire, the spotlight has shifted towards India for the immense talent and potential that lies in it.

M&E Industry in 2009

According to KPMG-FICCI Report, overall M&E industry size grew from Rs. 579 billion in 2008 to Rs. 587 billion at a rate of 1.4 percent. The growth rate is likely to increase to 11.2% in 2010, as the industry is expected to witness a recovery.

The Cumulative Annual Growth Rate (CAGR) of last four years i.e. from 2006 to 2009 has remained at 10% and the whole industry is expected to grow at a rate of 13% in next five years.

Television and Print are the largest sectors of the industry contributing for greater than 70 percent of the revenues. Their dominance is expected to continue as we move forward. Emerging sectors like Internet and Gaming have shown highest growth rates due to the small base effect and increasing popularity, this trend is expected to continue as saturation point for these sectors seems too far. The contribution of Television Entertainment to the overall revenues of the M&E industry has gone up considerably in 2009 as compared to 2006. On the other hand, contribution from sectors like Films, Print, Music and OOH has come down in 2009. The reason for this is that these markets are becoming mature and hence, only big players are able to sustain themselves in these markets. e.g.

  • In case of production in films, most of the successful films are being made by big producers. Last year, all the four blockbusters were by top producers, like Yash raj films (Love Aaj Kal, New York), vinod chopra films (3 Idiots) and A B Corp (Paa).
  • Similarly, even in case of film exhibitors, multiplexes are spreading so fast and they even have advantage over single screen cinemas as they get exemption in entertainment tax. In multiplex industry also there is a large entry for barrier as it is a very capital intensive industry.
  • Considering print industry, there are no new players expected to enter. The reason for this being that almost all the newspapers are going online and the penetration of television and internet has increased which has created new sources for people to get access to news.

Going forward, it is expected that the contribution of Films and Print to total revenue from M&E industry may come down further in 2014, as the overall size of the industry continues to grow. Growth of Television is expected at the rate of 15 percent over next five years which is much higher as compared to almost 9% growth in both the Films and Print sectors. Hence, television industry is expected to contribute almost 48 percent of the total revenues of M&E Industry in 2014.

Indian Film Industry

The Indian Film Industry enjoys mass appeal in India and it also acts as one of the most important content feeder systems in the Music, Radio and Television segments.

The Indian Film industry is way beyond Hollywood both in terms of number of films that are produced and theatrical admissions. The total number of annual theatrical admissions in all Indian cinemas is around 3 billion, as compared to 1.5 billion tickets sold annually in the US, which is half of the scale of Indian Industry.

Despite these staggering numbers, Indian cinemas trail Hollywood in terms of overall revenues generated. The two main reasons that might be able to explain this gap between number of entries and the revenue generated are

  • Cheaper admission tickets (the average theatre ticket price in the US is nearly 7-8 times of that in India)
  • Relatively low penetration of multiplexes

Some other reasons that have resulted in suboptimal revenue are

  • Poor monetisation of various revenue streams
  • Inefficiencies across the value chain

(No data available - found this in KPMG Report)

Value Chain

There are three types of players in Indian Film Industry:

  • Producers
  • Distributors
  • Exhibitors

The different players add value at different stages:

  • Producer - Content Creation
  • Distributor - Content Distribution
  • Exhibitor - Viewing of Content

The other sources of revenue for the producer can be divided into various parts. The following figure shows the other sources with their distribution in the revenue of the producer.

The distributors are just a link between the film producers and the exhibitors. The distributors assess the value of the film and negotiate the price and territories where the film will be released with the producers This usually takes place on basis of three models:

  • Minimum Guarantee Model
  • In this model, the distributor is liable to pay a minimum amount for buying the distribution rights of the film initially. If the film performs well above a particular decided limit, then the distributor has to 50% of the income from the overflow amount with the producer.

  • Commission
  • This model usually happens when the producer is very confident about his movie. In this model, distributor only gets commission fee for the distribution. All the income is given to the producer after cutting the 10-15% of commission. Here the whole risk of the film's business is carried by the producer.

  • Outright Sale

In this model, the whole risk is carried by the distributor. In this case, the distributor buys the rights of the movie and then earns all the income generated by the movie.

The Revenue collected from sale of tickets is distributed between the exhibitor and the distributor on the basis of the new agreement that has been signed after the recent strike in 2009. There are four models that are followed by distributors and exhibitors but currently revenue sharing model is followed as decided after the strike.

According to the revenue sharing model, the revenue generated by sale of tickets (net of entertainment tax) is divided between the distributor and the exhibitor as per a pre-determined ratio. In this case, the risk of success of movie at the Box-office is shared between both the distributor and the exhibitor.

Role of Producer

The producer is the one who decides to make a film and then arranges for shooting, editing and dubbing the film and finally, taking the film to the audience.

The above flow chart summarizes the role of producer in a film industry. Producers get a minimum guarantee fee from distributors before a film is released in return of rights for distributing a film in a territory or several territories within the country.

Producers, who feel that their films have the potential to do well in the international market, also sell rights for the international distribution of their films. If the film does well and the distributor recovers his money, any additional inflows usually get divided between the two in accordance with pre-defined arrangements.

Producers finance their films either through internal accruals, bank finance, private financiers, or the equity route. In some cases, the cost of the film is raised by selling the rights upfront to distributors. Producers can recover up to 30% of the cost of the film by pre-selling it to distributors.

Role of Distributor

Film distributors buy the theatrical distribution rights from a producer for distributing the films in a territory or several territories. Thereafter they sell the rights for screening the film to the exhibitor. The distribution rights are normally purchased for a period of 3 years. In return, they offer a minimum guarantee fee to the producer; in some cases, they purchase the distribution rights well in advance of the release of the film.

Backward Integration

Players like PVR cinemas are going for backward integration.

PVR Limited ventured into the business of film distribution and set up PVR Pictures. Presently, PVR Limited holds 60% shareholding in the company with the balance 40% stake held by JP Morgan Mauritius Holding Ltd and ICICI Venture in equal proportion (20% each)


  • De-risking the business model
  • Better Margin
  • Become a one-stop solution
  • Control over content and quality

Big Companies involved in Film Exhibition

The main big listed companies that are involved in film exhibition industry are:

  • BIG Cinemas
  • INOX Leisure
  • PVR Cinemas
  • Fame Cinemas
  • Cineplex

Comparison on the basis of number of screens

Above data gives an idea of number of screens each of the listed exhibitor has. Reliance leads the count with 207 seats, but the problem in case of Big Cinemas is that their Revenue per screen is far too low when compared to other cinema exhibitors. This shows that being a leader and a largest multiplex in the country doesn't make it successful.

Recently, INOX has acquired 66% share in fame cinemas which takes its screen count to 171 (97+74) and makes it the second largest operator in country. INOX's revenue per screen is better than reliance.

PVR is also planning to open around 60 screens this year which will help it to take its tally to around 168. Also, considering that their revenues per screen are highest among all listed exhibitors, it will become one of the largest exhibitors in terms of revenue. Recent failure of its deal with DT cinemas, a cinema chain owned by DLF, has been a setback. Had that deal taken place, PVR would be enjoying more than 70% market share in NCR leaving behind all major players.

Comparison of film exhibitors on the basis of revenue generation model

The Revenue Model of Exhibitors consists basically of 4 sources:

  • Sale of Tickets
  • Food and Beverages
  • Advertisement
  • Other Income from other facilities like parking, gaming etc. at the multiplex

The above figure shows how the revenues are distributed for the firm. PVR has lowest contribution of income from sale of tickets in its total revenue, which implies that when people go to PVR they not only go and watch a movie but also grab snacks and enjoy other facilities.

Another thing to note about PVR is its revenues from advertising, which are highest when compared to other chains. The share of income from food and beverages in total revenue is highest for fame cinemas whereas that of income from other sources like parking and other facilities provided at the cinema hall is maximum for Big Cinemas.

Cinemax, inspite of having a gaming facility at their multiplexes, has not been able to generate revenues through other sources. The revenues from sources other than sales of tickets are important as the company needs to improve its efficiency by increasing the average spending done by each person at the multiplex.

Comparison of film exhibitors on basis of Revenue Generated per screen

As can be seen in the figure above PVR is one of the best in generating revenues per screen when compared to its competitors. This can be attributed to

  • The locations at which PVR Cinemas is present are mostly metropolitan cities or areas around these cities. Also, most of their screens are in malls where the per capita income of customers is quite high and hence, the revenue generated per screen is high for them. This, when compared with Big Cinemas who have maximum number of screens among all the major players in the industry, shows that not only having screens matters but there location is also very important.
  • The service model of PVR is much more superior when compared to other multiplexes. As mentioned in PVR's annual report 2008-2009, "At PVR candy bar, patrons were offered greater value combos that actually increased the spend per head. F&B communication was designed in such a way, that the strike rate per show actually went up even in the face of lower footfall. Different value packages were continually re-devised to keep the public imagination refreshed and engaged." As seen earlier the contribution of F&B in total revenue of PVR was maximum when compared to other cinema exhibitors.

Trends across last 5 years

As we analyse the trends of last 5 years, the above picture summarizes how the exhibitors have been bullish in last 5 years taking total number of screens from 150 to 560 between them, which shows an increase of more than 375%. Players like Reliance have been bullish to such an extent that their screen count has become 5 times and it has emerged as the largest Cineplex with maximum screens in India.

Total number of multiplex screens has increased to 850 screens, whereas the same number for single screens is at 11000. But as Ram Vidhani, President of Cinema Owners and Exhibitors association, puts it, "Single screen theatre owners are battling a high tax regime and need timely governmental intervention without which their survival is difficult". Multiplexes get exemption from Entertainment cost etc. in some cities giving them an incentive to expand, but single screen owners have no incentive and have to compete with these multiplexes.

Above Table presents the data for e-tax exemption that is received by multiplex owners. States like Punjab have even offered the same incentive to single screen players of they convert their halls to multiplexes.

Recent IPOs

Many Film Exhibitors and Producers have gone for IPOs so as to raise money from public. Some of them are:

  • Exhibitors: Big Cinemas, PVR Cinemas, Cinemax India, Fame (earlier shringar) Cinemas, INOX
  • Producers: K Sera Sera, Prime Focus Ltd., Eros International, Sri Ashtavinayak Films etc.

It has been an easy way of raising money for some institutions as raising money through IPO does not apply any restrictions on you, whereas taking a loan from bank might constraint the resources available.

For exhibitors, raising money for expansion is very necessary. If they depend totally on debt, then it might affect their position in market and affect their credit rating, making it difficult for them to get more loans. IPO offers a way to raise money and maintaining Debt-Equity Ratio to a decent level.

Some New Financing Models

  • During 2008, India's first film fund was created in India by Vistaar Religare Film Fund and Manmohan Shetty's Walkwater Media. Vistaar Religare Film Fund invested over $1 million (Rs 5 crores) - in Walkwater Media's film 'Victory' - and shared the upside of this deal.
  • Nomad Film Fund is another new fund formed with a corpus of Rs 250 crore ($50 million), 10% of which will come from the promoters and $25-$30 million from foreign institutional investors and $15-$20 million from the retail investors. The fund plans to rope in a top actor and fortis management team and it will have a life of around five years and is currently in the process of getting a SEBI approval.

Consortium Finance

Consortium finance, a well-established concept in the corporate world, has now entered the world of films. In a first of its kind deal, Exim Bank and Indian Overseas Bank (IOB) have come together to co-finance the Akshay Kumar-Katrina Kaif starrer De Dhana Dhan.The rate of interest is reported to be around 12.5 to 13% with the period being till the film's release, the only collateral being the negative of the film. Produced by Venus Records and directed by Priyadarshan, the film released in the third quarter of 2009. The film has been a hit at the box office (According to

Exim Bank forayed into the film finance four years ago and has, so far, disbursed close to Rs 33 crore. It has seen a good ratio of success with movies like Dhoom and Veer Zaara.

IOB has earlier financed a few films of AVM Productions in the South, such as the Rajnikanth starrer, Sivaji.

Office Collections

The data of box office collections in last 4 years (domestic + international) is quite insightful. From 2006-2008, there was growth in revenues at a CAGR of 15%. In 2009 despite of increase in number of films released the revenue fell by 16%.

The reason can be attributed to the 2 months strike, cannibalization of revenue due a large number of films releasing after the producer-exhibitor stand-off. Another reason is the content. The content of the films has not been good in 2009. In 2007, there were 6 blockbuster movies, In 2008, there were 7 blockbusters. This figure went down in 2009 reducing to just 4 blockbuster releases. So, the content released in 2009 is also week.

It has been found that consumer is willing to pay premium price if the content is good, like in case of '3 Idiots' whose average ticket price was 30 rupees higher than that of other movies, the people still went to watch that movie and the results are known by everyone.

Indian companies going international

Impact of Slumdog Millionaire

'Slumdog Millionaire', a rags-to-riches story of a young slum-dweller in India, received global recognition and accolades after its release. The film ultimately went on to win eight of the 10 Academy Awards it was nominated for.

While Slumdog Millionaire was not an "Indian" film in the sense that it was internationally produced, directed and distributed, it has had a significant impact on the Indian film industry.

  • Recognition of Indian talent: The movie won multiple Oscars including best original score (A.R Rahman), best original track (A.R Rahman and Gulzar), and Best Sound Mixing (Resul Pookutty) thereby shining the spotlight on Indian creative and technical talent.
  • Mainstream acceptance of India-themed content: The film reached such a level of popularity that words such as "Jai Ho" were catapulted into the international lexicon. Wall Street Journal critic Joe Morgenstern referred to Slumdog Millionaire as, "the film world's first globalised masterpiece." The implication that a market for crossover films exists in the Western world was noted by Indian filmmakers.
  • Increased acceptance of Hollywood dubbed versions: The dubbed version of the movie was one of the top grosser in India last year and strengthened the acceptance of dubbed Hollywood movies
  • Innovative distribution: The film became one of the first movies to be released on DTH just a few days after its India release, monetising a fast growing distribution platform.

The global acceptance of Indian talent is encouraging and may usher in a new era where collaborations with international productions, increased acceptance of Indian themes and subjects may drive greater audience reach and profitability for Indian films.

  • Percept Pictures is negotiating a deal with Shoaib Mansoor, the Pakistani director, producer and writer behind Khuda Ke Liye, to make a movie starring both Indian and Pakistani actors for simultaneous release in both countries. It is also set to co-finance 'Racing the Monsoon', a sequel to Michael Douglas' 1984 film 'Romancing the Stone'.
  • Vidhu Vinod Chopra is set tp direct a Hollywood project 'Broken Horses'.
  • Sanraa Media signed a MoU with US-based WSG Films to form a joint venture company. The joint venture company may front end the Indian Studio in Hollywood and USA to work on global co-production deals for animation and VFX projects.
  • Reliance MediaWorks partnered with In-Three for 2D to stereo 3D conversion.
  • Reliance Big Pictures' forayed into Hollywood through a joint venture with director Steven Spielberg with an initial funding of USD 825 million.

Evolution of Film Industry - from 'DDLJ' to '3 Idiots'

Over the last decade, scale of Indian films has changed dramatically and new revenue benchmarks are being set each and every year. When we compare the till date revenues of 'Dilwale Dulhaniya Le Jayenge' (one of India's longest running films) to that of '3 Idiots' in its opening week, it is found that the first wek collection of 3 Idiots is 12.20 cr. which is 13 lakhs more than that of 'Dilwale Dulhaniya Le Jayenge'. It is illustrated by the figure below.

(Inflation adjusted figures can't be considered as figures of DDLJ are spread across 14 years)

Of late, it has been noticed that viewers are willing to pay a premium for top quality content, For instance, there was an increase in average ticket price of '3 Idiots' by about Rs.30 in multiplexes. Willingness to pay higher for the audience for quality content should act as a lever for the industry to focus more on content. Film producers should concentrate more on quality and not on quantity as its only the quality that works.

Additionally, considering the high potential of international markets, Indian filmmakers are aiming for a bigger release of their films across various countries. For instance, '3 Idiots' was released overseas with nearly 400 prints worldwide of which 210 were in the US alone. Indian exhibitors like Big Cinemas who are expanding internationally are helping this cause by making it easier for release. e.g. in case of '3 Idiots' which released 210 prints in US, most of them were in collaboration with Big Cinemas. Big Cinemas, with around 165 screens across US, accounts for 30-35% of Hindi Box office collection and 70% of Tamil Box-office collection from US.

Even, cable and satellite rights have shown above average returns for films that have performed well at the domestic box office. However, physical and online piracy continues to be a challenge and has impacted both theatrical and home video revenues.

Indian Film Industry - 2009-10

Overall, 2009 was a difficult year for the film industry. While the multiplex - producer stalemate left the industry with significant losses, the general elections and the swine flu scare also kept audiences away in early 2009. Moreover, lack of good sustainable content affected the success ratio and fortunes of the industry.

The strike launched by Hindi film producers and backed by United Producers Forum lasted for two months and stalled several movie releases in multiplexes. As collections from multiplexes contribute a considerable percentage of a film's gross domestic theatrical collections, the lack of major films released during this period resulted in significant losses for the industry.

However, the last quarter of 2009 brought some cheer to the industry. The success of films like 'Ajab Prem Ki Ghazab Kahani', 'Aadhavan', 'Vettaikaran' and '3 Idiots' boosted the industry's fortunes. Hollywood films like '2012' and 'Avatar' also did well at the box office.

There were 242 Hindi films (nearly 140 mainstream Hindi movies) released in 2009 as against 229 released in the previous year. Although the number of films released in India in 2009 was higher than the previous year, the number of films that were successful at the box office has been far less. The year 2009 had only four blockbusters as compared to the seven blockbusters in 2008 and six in 20073. Industry sources estimate that the percentage of successful films that were profitable to many of the stakeholders in 2009 was nearly half of that in 2008. (According to KPMG-FICCI Report, 2010)

Further, poor profitability of films on account of mediocre content and high talent cost is expected to force the industry to be more cognisant of such issues and follow a more efficient approach in maintaining cost discipline while producing films. Continued interest by global studios in India, investments in technology such as 3D and digitisation, introduction of miniplexes, coupled with strong government support against piracy is likely to help the Indian film industry strengthen its position in the years to come.

DTH - 'Video on Demand/Pay per view' - offering a new revenue stream?

Bollywood has so far followed a very traditional distribution model, with limited focus on alternative platforms. The DTH platform offers a new revenue stream for producers to monetise their filmed content. Progressive producers view the direct-to-home (DTH) platform as a means of supplementing their overall revenues, rather than as a threat to theatrical revenues, as the perception is that the big screen viewing experience cannot be compared with that of the small screen.

A number of films such as 'Slumdog Millionaire', 'Aa Dekhen Zara', 'Main Aur Mrs.Khanna' and 'Ajab Prem Ki Ghajab Kahani' were released on DTH this year within weeks of their domestic theatrical release.

Although revenues from DTH releases currently comprise a small portion of overall revenues, the industry is optimistic about its future potential.

Emergence of digital production

The increasing number of films that are being shot in the digital format is likely to pave the way for digital production, digital post-production, and digital release (DDD) structure. For instance, in 2009 Sathyam Cinemas and Real Image Media announced their first Tamil film production "Thiru Thiru Thiru Thiru". The film was reportedly India's first end-to-end digital movie that was shot, color-graded, and released entirely in the digital format.

Globally, digital production has progressed in leaps and bounds in 2009 with 'Slumdog Millionaire' becoming the first movie shot mainly in a digital format to be awarded an Academy Award for Best Cinematography, and 'Avatar', the highest grossing film of all time, receiving accolades for its visuals that were shot and displayed using digital technologies.

The rising number of digital screens also provides the film industry with a larger number of release centres. While earlier an average film released in approximately 250 centers, increased penetration of digital screens is enabling filmmakers to release their films in 700 to 800 centers on an average due to lower costs and ease of logistics.

Few leading digital technology providers in India such as UFO Moviez and Real Image indicate that the total number of digital screens in the country is currently over 3,000.

The number of digital screens is expected to increase significantly in the future as producers and distributors start to utilise more number of digital screens to ensure a wider release of their films, reduce print costs and piracy.

The numerous advantages offered by digital cinema that have contributed to its increased penetration are illustrated below:

  • Savings in Print Costs
  • Wide Release of Film
  • Durability of Media
  • Curb on Piracy
  • Lower Break-even point
  • Promotes Regional Films and Niche Cinema

Trends of Box Office Collection in 2009

Trends of Box Office Collection in 2009

The above figure shows month-wise data for the box office collections for last year. Various events impacted the revenues last year. During April-May, when revenues were lowest, the reason was stand-off between producers and exhibitors regarding the revenue sharing model and also IPL2 was also a reason. So, there were not many releases and the movies that released did not get any response due to IPL2. During August again revenues fell due to the swine flu scare. Then, again in this year in March'2010, the revenues can be seen falling due to launch of IPL3.

We can also see a sudden upward trend during Septenber;2009-December'2009, the reason for this being some good content movie releases like 'Ajab Prem Ki Gazab Kahani', '3 Idiots' etc. which gave a relief to the industry.

Exhibitors v/s Producers - Strike - Impact

The strike launched by Hindi film producers and backed by United Producers Forum lasted for two months and stalled several movie releases in multiplexes. As collections from multiplexes contribute a considerable percentage of a film's gross domestic theatrical collections, the lack of major films released during this period resulted in significant losses for the industry.

Although the multiplex strike temporarily derailed the industry, it sowed the seeds of an open constructive dialogue between these two important stakeholders. This augurs well for the industry as it is expected to lead to a more collaborative approach towards business in the future.

With multiplexes playing such a critical role, understandably the producer-multiplex impasse had a deep impact on the entire industry. The key reason for the standoff was the revenue sharing norms between multiplexes and film producers with multiplex owners demanding a higher share of the revenues. As per the final settlement, producers are likely to retain the rights of distribution of the films whilst exhibitors are to control the showcasing rights. The revenue share between multiplex exhibitors and producers is likely to be as follows:

The above table shows a percentage-wise collection for movies having different results. This is not specific as there are many exceptions like Slumdog Millionaire which received good collections later due to publicity received by its Oscar nominations.

This revenue sharing model gives more incentive to producer to produce a movie with good content. A movie with good content will fetch higher movie collection giving producer a better share in the collection and hence, improving his income.

Launch of IPL3 in Cinemas - Flop Show

This year, in order to tackle the low occupancy rates during the IPL season, IPL3 was launched in cinema halls. This is the first time that live matches of IPL are being screened at cinema halls. But, the response received was so low, that during the first week the occupancy rates were less than 30%, This is not because IPL fever is dying as the league's cumulative reach on television surpassed season 2 by 13% and season 1 by 40%, according to TAM Media Research Pvt. Ltd., a TV audience measurement company.

Digital Satellite Cinemanetwork UFO Moviez India Ltd., the technology and marketing service provider for the screening of IPL matches in movie halls, blamed poor marketing for occupancy rates. It says that occupancy was low because nobody knew about it, which was due to lack of publicity done by multiplexes.

Due to IPL, there are no big releases, which make matters worse for multiplexes as they almost have no business during these months.

Indian Film Industry - Outlook

Entry of foreign players


  • Fox Star Studios produced the experimental 'Quick Gun Murugan'. Karan Johar's Dharma Productions and Shah Rukh Khan's Red Chillies Entertainment also finalised an arrangement with the Murdoch-owned Fox studios mid last year for 'My Name Is Khan'.
  • Fox STAR Studios, a joint venture between Twentieth Century Fox and the Star Entertainment and Media Group, owned by Rupert Murdoch's News Corp, announced its entry into India with multiple deals with various Indian producers for worldwide distribution. It tied up with Vipul Amrutlal Shah for a multiple-film exclusive deal.
  • Warner Brothers continued its tryst with Bollywood by producing the Akshay Kumar starrer 'Chandni Chowk to China'. The studio is expected to release more Indian films in 2010.
  • Walt Disney announced its independent plans to produce four live action films as well as three in a joint venture with Yash Raj
  • Carey Fitzgerald's High Point Media Group is collaborating with Pritish Nandy Communications for the latter's first horror film 'The Accident'.
  • Malaysia and India are exploring ways to cooperate in producing films in the near future, said the Director-General of The National Film Development Corporation Malaysia (Finas). He said the venture was being explored by Finas with the Federation of Indian Chambers of Commerce and Industry (FICCI) via the visit of famous Tamil film star Kamal Haasan.


Cinepolis plans to open 500 screens by 2016. It has already till date signed 160 screens in 10 cities with more than 10 developers. The company plans to open at least 40 screens in 2010 across the country. Apart from creating a compelling movie going experience, Cinpolis popular services would also include advanced technology enabled mobile & internet ticketing with 'Cineticket', gourmet food and beverage offerings with 'Coffee Tree', and its internet portal that has won numerous awards as being the industry's best. The Cinepolis experience will be available at an affordable price spectrum from Rs.80-160

Regulations - Cinematograph Bill, 2010

The draft cinematograph Bill, 2010 - that will replace the 60-year-old Cinematograph Act, 1952 - is expected to introduce a slew of measures that will bring cheer to both makers and viewers of films in the country.

Keeping in mind the changed film viewing habits, the information and broadcasting ministry has decided to introduce two more categories of film certification. Now, the films will carry certificates making them eligible for viewing for 12-plus and 15-plus age categories. This has been done keeping in mind the sensibilities of the viewers to different levels of language, content, nudity and violence. This will come as a big relief for film directors and producers who often found their films labelled under the adult category. Viewers, too, will be able to make an informed choice.

There will also be stringent penalties to check piracy, while obsolete provisions in the law hampering the growth of films will be done away with. Under the new provisions, anyone copying films illegally or making pirated copies using any technology will be liable to cough up a fine of up to Rs 25 lakh with a minimum of Rs 5 lakh. The punishment could be extended from one to three years.

The draft Bill will also ensure that onethird members of the 25-member Central Board of Film Certification Board will be women. Even the advisory boards will have one-third women members. This is to help address the sensibilities of women in films.

The Bill has been put up for scrutiny and has invited suggestions after which it is likely to be introduced in the current session of Parliament.

Curbing Piracy

The Indian film industry lost $959 million (Rs 4,411 crore) in revenue and around 5,71,896 jobs in 2008 thanks to piracy, according to a report released on Thursday by the US India Business Council and Ernst & Young. The report, 'The effects of counterfeiting and piracy on India's entertainment industry', estimates the piracy rate at 60%.

According to filmmaker Mukesh Bhatt, online copyright theft in India is growing rapidly. Two separate reports last year placed India on the top ten countries worldwide for P-2-P infringements.

* New piracy laws in Maharashtra & Karnataka

The Maharashtra Prevention of Dangerous Activities (MPDA) act was amended and enforced from in 2009. Similarly in Karnataka, the Karnataka Prevention of Dangerous Activities of Bootleggers, Drug- Offenders, Gamblers, Goondas, Immoral Traffic Offenders and Slum-Grabbers (Amendment) Bill, popularly known as the Goonda act bought film and video piracy under its purview in July 2009. The industry expects the legislations to help curb revenue losses due to audio and video piracy in the two states. Maharashtra and Karnataka are not the first states to pass such an act to tackle piracy; a similar law termed as the 'Goonda' act, was passed in Tamil Nadu in 2005, which has met with some success in curbing piracy in the state.

Digital Cinema

Digital Cinema is also a step towards curbing piracy. Digital Cinema helps producers to release a film on a large scale, due to which the time for piracy reduces. Till the time copy of the movie is available on the internet, the movie has been released all around the globe and collected revenues. Also, it is difficult to copy from digital source. The source from where pirated copy has been made can be easily identified and hence, the person who has leaked the data can be caught.

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