The Indian Bollywood Industry

Paw Jeppesen

Description

Bollywood is the most well-known film producer in India, and therefore the name is often used to describe the whole film industry in India even though the industry is divided into many regional areas.

Sujets

• Bollywood
• Cinema
• India
• Indian cinematographers

Informations

• Publié par: Fil_Divertissement
• Publié le: 09 janvier 2013
• Nombre de lectures: 126
• Langue: English

Extrait

Ejvind Vøgg–Own Man in India

The Indian Bollywood Industry

DIBD–OMII Own Man In India May 2012

Indian Bollywood Industry

Introduction to the Indian Bollywood Industry •Current market situation •Revenue distribution •Product placement in Bollywood movies •Celebrity endorsement, management and brand ambassadors

Current market situation •Bollywood is the most wellknown film producer in India, and therefore the name is often used to describe the whole film industry in India even though the industry is divided into many regional areas. The Bollywood production takes place in Mumbai earlier referred to as Bombay, hence the name Bollywood. The name also reflects the American counterpart– Hollywood. •Bollywood is the largest film producer in the world. They produce roughly 1000 movies a year. Hollywood only produces 500 and Japan produces 400 movies a year. •The Bollywood industry had a revenue of US$ 3bn. in 2011, and has been growing at approx. 10,1% a year. The revenue is expected to reach US$ 4.5 bn. by 2016.

Indian Bollywood Industry

Indian Bollywood Industry

Current market situation •Bollywood films are not only watched by people in India, also neighboring countries like Pakistan, Bangladesh, Nepal, Pakistan, Sri Lanka watch the movies. Moreover, countries with large groups of Hindi and Urdu speaking nationalities like Australia, UK, Africa and the US have many Bollywood fans. And lastly old trading partners like Russia and Japan are also buyers of Bollywood productions. •The top five male actors receive between US$ 6 to 16 million a movie vs. female actresses that only receives about US$ 1 to 1.5 million a movie. •Revenue generated from the ticket sales is only a small part of the industry. Celebrity endorsement and management have long been the major profit base for the industry as well as product placement that is becoming far more popular to integrate into the movies.

Revenue growth

Revenue in US$ bn

4

3,5

3

2,5

2

1,5

1

0,5

0

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

Indian Bollywood Industry

2010-11

2011-12

Sources of revenue

Film Industry Domestic Theatrical Overseas Theatrical Home Video Cable and Satellite Rights Ancillary Revenue Streams Total Industry Size

Indian Bollywood Industry

Revenue measured in percent 74 % 7 % 3 % 11 % 5 % 100 %

Key drivers

•Growing middle class income  300 million out of a population of 1,1 billion, •High return on investment •Low costs of production •Many Indians living abroad •Increased importance of regional cinema •Increased demand for multiplex theaters •Indirect profits from product placements, celebrity endorsement etc •Favorable demographic changes •Higher quality and awareness of the films produced: • ‘SlumdogMillionaire’; an International production has created a synergy to Bollywood • ‘Ra.One’ released in 2011; Price USD$ 30 million most expensive Bollywood production • ‘PeepliLive’; nominated Sundance Film festival 2010 andat the nominated for the 2011 Oscar nomination in the category of ‘Best Foreign Language Film’

Indian Bollywood Industry

Indian Bollywood Industry

Bollywood actors & actresses in Hollywood and viceversa

•Bollywoodand it’s Alist actors have the same status in India as royalties, presidents, film and rock stars have in the West •Bollywood and Hollywood are opening up to each other •Bollywood to Hollywood • Anil Kapoor in ‘Slum Dog Millionaire’ and later in ’24’ • Aishwarya Rai Bachchan in ’Pink Panther 2’ with Steve Martin and ‘The Last Legion’ with Colin Firth •Hollywood to Bollywood •Ben Kingsley in Teen Patti (Three Cards) • Sylvester Stallone in ‘Kambakht Ishq’ • Jennifer Chambers directed ‘Hiss’

Indian Bollywood Industry

Bollywood company tieups/collaborations •Reliance Big Entertainment signed a deal worth US$ 1.2 billion with Steven Spielberg’s ‘Dream Works SKG’ to produce 36 films for the next 6 years •Reliance also acquired around 200 theatres in 28 locations in North America to screen Bollywood and other regional movies from India. •Walt Disney has invested around US$ 324 million in a deal with Yash Raj Films. •Ramesh Sippy Entertainment has collaborated with Warner Bros. •Warner Bros has also signed a three movie deal with People Tree Films and a one film tie up with Tandav Films

Indian Bollywood Industry

Product placement in the bollywood movies •Within the last ten years Bollywood has become more international and begun to focus much more on targeting the global audience and environment. •Bollywood has realized the necessity to create an ambience and environment in the movies, so the movies are able to target both the Indian culture as well as a more international culture overseas. •Many younger Indians in India and elsewhere are very aware of the Western culture, therefore Bollywood tries to catch this attention with product placement of Western products in the movies.

Indian Bollywood Industry

Product placement in the Bollywood movies

• ‘Audi Q7’ was placed in the major box office “Bodyguard (2011)”. The goal was to create awareness of the newly introduced car brand in the Indian market • The prominence of ‘Starbucks’ in ‘Kabhi Alvida Na Kehna(2006)’ where the target of the placement was the audience outside India • The box office ‘OmShanti Om (2007) included many different brands like Exide, Tag Heuer, Maybeline and MTV •Even real life matrimonial wedding sites gets mentioned. In the movie ‘NamasteyLondon’ (2007) the website of the Bharatmatrimony.com is mentioned as having the highest reliability in finding your new partner •Other brands being product placed: Coca Cola, Pepsi, Pizza Hut, Toyota, Mercedes, ESPN, Sony Vaio, Sony Handycam, Nikon, Kawasaki, Nokia, Sony Erickson, Calvin Klein, Goodyear, Castrol and many more