Ask James Nicholas Gianopulos, chairman & CEO, Fox Filmed Entertainment, why India is still such a small percentage of Fox?s global revenues, and he quips that it has the potential to be much larger. And then he gives two examples to show why Fox is taking India very seriously. He tells us that 12 years ago, China was a market very difficult to penetrate. Cut to 2009 and James Cameron?s Avatar, which has grossed $2 billion and counting at the global box office, has done business worth $170 million in China alone. When Cameron?s earlier global hit Titanic was released in 1997, it did limited business in an emerging market like Russia. Today, says Gianopulos or Jim, as he is better known, Russia is one of Fox?s top ten markets. Jim, who is in Mumbai for FICCI-Frames 2010, tells Sudipta Datta what the Hindi film industry needs to do to get there, on the risks Fox took with Avatar and why Fox is interested in partnering with Indian film-makers like it did with Karan Johar for My Name is Khan. Excerpts:
In a recession year, what has Avatar done to Fox and the global film industry?
It has given us an extraordinary year and this tremendous achievement has set a high bar for the industry. There has been a lot of discussion on 3D cinema, but this is the first massive breakthrough in 3D technology and will change the way film studios view the potential.
Avatar has been many years in the making. Were you always sure it would succeed phenomenally?
It was an enormous risk for Fox. The risk was to make an investment in a film that was original, unique, visionary and one that was using technology that hadn?t been tried or tested. But after a 15-year relationship with Cameron, we knew we needed to work with him. Anytime when you go beyond the boundary of convention, it?s a great adventure and with Avatar it was an extraordinary journey.
How badly has the US market been hit by recession?
Oh! Hollywood didn?t have a recession. People went to the theatres instead of dining out or taking a holiday because going to the movies is still a wonderful time to spend their time and it?s much cheaper too. But we have been affected by the decline in the DVD market, which contributes 50% to our revenues. People, at least in the West, went from purchasing videos to purchasing fewer videos and opting to rent movies.
The DVD market in India is still very small?
Yes, and that?s one of the challenges for the Indian film industry. Can it create an ancillary market other than satellite rights? The home video market is an important source of revenue for film producers.
India is small in the Fox scheme of things. Do you see that changing?
India is not a very important market for Hollywood movies, but over time as audiences become more globalised, this will change. India is the largest local movie-making industry in the world. We want to expand the appeal of Hollywood here. We also want to partner with great filmmakers like we did with Karan Johar for My Name is Khan. The film has a powerful message and has resonated with audiences worldwide.
The Indian film industry is tiny compared to Hollywood. What must it do to get a wider global audience?
The challenge for India is that you have the talent, resources, studio, technicians, but thematically most movies still speak to a local audience. Hollywood has dominated the movie industry because it appeals to a wide variety of cultures and, rooted as it is in immigrant experience, it?s much easier for the movies to travel. A film must have the ability to be marketed. Hollywood movies are designed to travel around the world.