Corporates get a bigger role in bollywood

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Thursday , April 10, 2008 at 2004 hrs now coming from corporates but we need to concentrate more on content, invest more in marketing and distribution. As I keep saying, if content is king, distribution is God.”

One of the biggest changes that has happened is the way movies are being made, according to Siddharth Roy Kapur, director, UTV Motion Pictures. “Now, filmmakers and producers are making movies much more efficiently and in a much shorter span.” Sandeep Bhargava, chief adviser of the AIM-listed The Indian Film Company, says, “Three to four corporates are ruling the industry. There’s no balance between revenues and cost of production, which includes cost of talent. I see a correction coming.”

Key drivers

Bollywood is getting to be a more professional industry, but is it on course to touch $5 billion by 2011 as some estimates suggest? “Yes, very much,” says Shailendra Singh, joint MD, Percept Holdings, “The opening of the film industry to foreign investment coupled with the granting of industry status to this segment has had a favourable impact, leading to many global production units entering the country, including Walt Disney, Warner Group, Viacom and Sony Pictures Entertainment.” Other factors driving the industry, according to experts, are the rise of consumer spend on entertainment, the boom of multiplexes, now beginning to impact tier-II and III cities as well, digitisation, increase in Hollywood film releases in India and improved models of financing. Production houses are being forced to embrace corporatisation, says Singh, thanks to systematic and continuous growth.

Challenges remain

While the method of working has changed, certain factors key to corporatisation haven’t in many cases. Experts point at the lack of discipline and accountability. “You can’t be a family-run company masquerading as a corporate,” says an insider. “It’s a totally relationship-driven industry,” admits Kishore Lulla, chairman & CEO, Eros International. “The mindset hasn’t changed. If we have been successful, it’s because we have a 30-year experience in the business. We are a corporate but we have a relationship with everyone in India.”

There are other challenges to conquer, points out Singh of Percept. “Original concepts, an ever increasing talent fee, transparency in box-office revenues, IP regulation and piracy are all issues that still need to be addressed on a consistent basis.”

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