How do you view films as a business?
Certainly, film business is riskier compared to other businesses. There is no clear formula for commercial success in this industry. However, the industry could be made viable through corporatisation. Such a corporatisation exercise can instill greater discipline in production methods and managing costs, have strict contracts with artistes and create a reasonable base of films. Such a basket of films can help tackle the inherent risks much better than individual film-centric projects. Current attempts to corporatise film production and distribution could bring in more stability to the film business.

Why have Indian companies stayed away from the film business so far?
The business of film production, distribution and exhibition has grown over the years as proprietary businesses. Corporate entities have stayed away from the film industry because in the past corporate governance was not possible. Today, the approach to film making is far more professional. Hence, corporates are looking at the film business more seriously.

Why are music players such as Tips and Venus diversifying into film production?
It makes eminent sense for a music company, which is a major player in the film music market, to diversify into films. There are two fundamental factors for this trend. One, cost of music acquisition has been steadily going up. In many cases, music acquisition accounts for as much as 40 to 50 per cent of the total cost of producing a film. With a little additional investment, it is possible to balance the risk between music and film distribution.

How lucrative is the music business? What is the size of the music market today? How do you see it growing?
The Indian music market is about Rs 1,300 to Rs 1,400 crore, of which about Rs 400 to Rs 500 crore would be accounted for by pirated products. The music market has been growing at six to eight per cent. I see individual companies growing because of the consolidation process. Such a process will help them acquire labels, invest more in new products and whittle down marketshares of competitors. Eventually, there would be five to six major players in the music market.

There is a certain synergy between the music and film businesses. Do players such as GCI intend to leverage that?
There certainly is synergy between the music and film businesses. For, film music accounts for more than 75 per cent of the music market. We are conscious of the need to be in the film market and a strategy to this effect will be reworked. The vehicle for doing such a business will be determined in due course.

Overseas, large players have presence across the entire value chain. Why is this not the case in India?
It is true that Indian film industry players are not into production, distribution and exhibition. However, Sony is making a beginning. Polygram (Universal) has produced a few films. Though we can expect greater presence from such corporates in the years to come, the possibility of these players having a dominant role in the Indian film industry is some way off.