The document is a project report on the role of the film and TV industry in India's economy. It provides background on the film and TV industries in India, including their size, reach, and history. It then discusses the objectives of the study, which are to evaluate the importance, performance, and problems of the industries. Finally, it analyzes the industries' contributions to GDP, employment, and other economic metrics. The film and TV industries play a major role in India's economy through direct and indirect impacts, though piracy poses a significant challenge.

1. PROJECT REPORT
ON
ROLE OF FILM AND TV INDUSTRY IN OUR
ECONOMY
Submitted to: - Submitted By:-
Dr. Tapan Kumar Nayak Gaurav Rastogi (076)
Associate Chairperson Gaurav Sharma (077)
PGDM (General) Harshit Suri (078)
IMS C-238, Lal quan Hemant Trivedi(079)
GT road, Ghaziabad- 201009 Hina Gupta (080)
Section – B, PGDM IIIrd
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2. DECLARATION
We hereby declare that the Project entitled “Role of Film and TV Industry
in our Economy” submitted to Dr. Tapan Kumar Naik (Faculty Member)
Business and Economic Policies, IMS Ghaziabad in partial fulfillment for
the award of the degree of PGDM and the project has not previously
formed the basis for the award of any other degree, diploma, associate
ship, fellowship or other title.
Gaurav Rastogi Gaurav Sharma Harshit Suri
(BM-011076) (BM-011077) (BM-011078)
Hemant Trivedi Hina Gupta
(BM-011079) (BM-011080)
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3. ACKNOWLEDGEMENT
With our sincere regards, we wish to acknowledge our indebtness and
gratitude to the contributions of people who helped us at every stage of the
project.
We are very much like to express our gratitude and profoundest
thanks to our project guide Dr. Tapan Kumar Nayak (Associate
Chairperson PGDM IMS, Ghaziabad) for their sustained guidance,
invaluable suggestions and constant encouragement without which it would
not have been possible for us to complete this project.
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4. TABLE OF CONTENT
1. Introduction
(a) Film industry in India
(b) Regional Films in India
(c) Brief history of Film industry in India
(d) TV Industry in India
2. Objective of the study
3. Literature review
4. Role or Importance of Film industry in India
5. Prospects of Indian film Industry
6. Major problem of Indian film industry
4

5. INTRODUCTION
The film and industry consists of the technological and commercial
institutions of filmmaking: i.e. film production companies, film
studios, cinematography, film production, screenwriting, pre-
production, post production, film festivals, distribution; and actors, film
directors and other film crew personnel.
Though the expense involved in making movies almost immediately led film
production to concentrate under the auspices of standing production
companies, advances in affordable film making equipment, and expansion
of opportunities to acquire investment capital from outside the film industry
itself, have allowed independent film production to evolve.
Film Industry in India
India is the largest producer of films in the world.
In 2009, India produced a total of 2961 films on celluloid that include
a staggering figure of 1288 feature films.
Films are made in different 20 languages.
With 3.3 billion tickets sold annually, India also has the highest
number of theater admissions
Indian film industry is multi-lingual and the largest in the world in
terms of ticket sales and number of films produced.
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6. The industry is supported mainly by a vast film-going Indian public,
and Indian films have been gaining increasing popularity in the rest
of the world—notably in countries with large numbers of expatriate
Indians.
Largest film industry in India is the Hindi film industry mostly
concentrated in Mumbai (Bombay), and is commonly referred to as
"Bollywood", an amalgamation of Bombay and Hollywood.
The other largest film industries are Tamil cinema and Telugu
cinema which are located in Chennai and Hyderabad and are
commonly referred to as "Kollywood" and "Tollywood".
The remaining majority portion is spread across northern, western,
and southern India
(with Punjabi, Bengali, Marathi, Oriya, Malayalam, and Kannada).
However, there are several smaller centers of Indian film industries
in regional languages centered in the states those languages are
spoken. Indian films are made filled with musicals, action, romance,
comedy, and an increasing number of special effects.
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7. Regional Flims in India
Mainstream Cinema in India is dominated by Hindi language film which
typically makes up a significant portion of total box office collections.
However, over the past few years, regional films have been growing
popularity with releases in a great number of theaters both within and
outside the Indian Territory.
Within regional languages, south Indian segment is an important market in
terms of number of film releases with the four southern states comprising
Andhra Pradesh, Tamil Nadu, Karnataka and Kerala together accounting
for a majority of the total number of film releases in India. Other regional
language markets in India include films made in Bengali, Bhojpuri, Marathi,
Punjabi etc. The total domestic box-office collections from regional
language films in India are estimated to be about Rs. 1,508 crores.
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8. Brief History of Film Industry in India
1896: First moving picture showed in India
1913: - first Indian-made feature film (3700 feet long) released
1931: India's first talkie, Alam Ara released dubbed into Hindi and
Urdu
1930s and 1940s:
i) Talkies addressing social differences of caste, class and the
relations between the sexes were released
ii) Radical cultural organizations led to the formation of All India
Progressive Writers Association and the Indian People's
Theatre Association (IPTA)
1950: Calcutta becomes the vanguard of the art cinema
1951: industry became the object of considerable moral scrutiny and
criticism, and was subject to severe taxation
1960s:
i) popular cinema had shifted its social concerns towards more
romantic genres
ii) The period is also notable for a more assertive Indian
nationalism.
1970s: By the beginning of the year there existed above150 film
societies all over India.
1980s: the films took a stronger stance on the social issues with an
outpouring of the social conscience, and flowing of new images.
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9. 1990s: In the 1990s, video, national and satellite/cable television have
resulted in the development of a prolonged crisis in India’s movie
industry, where commercial and art films are equally at risk of failing
at the box office.
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10. TV Industry in India
Television is one of the major mass media of India.
India is the second-largest pay-TV market in the world, with 108
million subscribers and a reach of 48% of Indian households
It is a huge industry which has thousands of programmes across
Indian states ranging from national language to regional ones.
The small screen has produced numerous celebrities of their own
kind some even attaining national fame.
Approximately half of all Indian households own a television.
As of 2010, the country has a collection of free and subscription
services over a variety of distribution media, through which there are
over 515 channels and 150 are pay channels.
According to Pioneer Invest corp, the Indian cable industry is
worth 270 billion (US$ 5.94 billion) and is the third largest in the
world after China and the US.
The number of TV homes in India grew from 120 million in 2007 to
148 million in 2011.
Cable reaches 94 million homes with 88 million analog connections
and 6 million digital ones, while DTH has commanded 41 million
subscribers.
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11. Objective of the Study
The main objectives of the study will be:
1. To know importance of Film and TV Industry with respect to Indian
Economy.
2. To evaluate performance of Film and TV Industry.
3. To figure out the problems and issues related with Film and TV
Industry.
4. How this industry is helping other Sectors of the Economy?
11

12. Role or Importance of Film and TV Industry in our
Economy
Film and TV industry is one of the important contributors to the economy
and plays a very important and critical role in economic development due to
the following reasons:
Contribution of Film and TV industry to the GDP was 0.532%
The combined revenues of film and TV industry was around Rs.
50,000 crore (USD 10.00 billion) in the calendar year 2011. It is
expected that it will be around Rs. 54,000 crore (USD 11.00 billion)
in the calendar year 2012.
The film and television industry in India is one of the world's largest
markets in terms of number of consumers and offers significant
growth potential. Over the past few years the industry has
experienced rapid double-digit growth and it is expected that this
trend will continue in future, resulting in increasing contribution to the
Indian economy.
The sector has a total output more than $20 billion (Rs 1,00,000
crore), contributing more to the Gross Domestic Product (GDP) of
India than the advertising industry.
Film and TV industry creates more than 2 million jobs (directly or
indirectly) in the economy.
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13. Prospects of Indian Film Industry
Growth is expected to come from the expansion of multiplexes
in smaller cities, investments by foreign studios in domestic and
Regional productions, the growing popularity of niche movies and
the emergence of digital and ancillary revenue streams.
Rise of multiplexes: Multiplexes continue to gain prominences
across major Indian cities and companies have lined up
investments to accelerate multiplex penetration in smaller towns.
The number of multiplex screens is expected to double in the next
five years, from 900 to 1,775 screens.
Digitization is providing scale and reducing piracy: Digital
prints cost 80% less than conventional film prints, allowing
producers to reach five times the number of screens at the same
cost. This has significantly improved realization, as 60% of box-
office collections are now earned within the first week of a movie’s
release. Digital cinema allows companies to control exactly where
movies are showing and how many times they are shown. It also
expands the reach of releases, from large cities to remote towns
and villages across India.
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14. Emergence of new sources of revenue: In the last few years, the
window available to monetize a film’s revenues at the box office has
shortened considerably. This is driving film studios to exploit ancillary
streams of revenue such as pay-per-view, mobile, online gaming, and
licensing and merchandising. The revenue from these ancillary
streams and cable and satellite (C&S) rights are projected to grow at
a CAGR of 16% from 2009 to 2014.79 The pre-sale of satellite and
home video rights has also gained momentum.
Regional-language cinema forms an integral part of India’s film
industry: 60% of all movies produced in India are in the four South
Indian languages of Telugu, Tamil, Kannada and Malayalam.80 This
market is witnessing rising investments from Indian and foreign
studios, with a gradual shift in favor of regional films as compared to
Hindi films. Studios are also releasing dubbed versions of popular
Hollywood films, while multiplexes are increasing their Screenings of
regional movies.
Outsourcing of film services: Services such as postproduction,
animation, visual effects, and 2D to 3D conversion are being
increasingly outsourced to India, driven by the availability of a skilled
workforce and the low cost of services.
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15. Small-budget films go mainstream: Small-budget niche films with
high-quality scripts have recently gained acceptability among
mainstream audiences. Strong content and word-of-mouth marketing
have helped studios to generate high returns from these films,
thereby diversifying their risk from big-budget movies.
Globalization of the Indian film industry: Indian producers are
improving the international marketability of large budget Indian
movies by building partnerships with international screenwriters,
composers and technicians. International fi lm studios are also
producing and distributing Hindi and regional movies. Of the top six
international movie studios, four are involved in distributing or
producing Indian movies. A number of Indian film studios and M&E
companies are also expanding their international footprint by
acquiring international theater chains and production studios.
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16. Prospects of Indian Television Industry
Increased fragmentation in viewership: Viewership, especially in
the Hindi general entertainment genre, is increasingly getting
fragmented as a result of a large number of such channels being
broadcast in India. However, a few players continue to dominate the
market, commanding a significant share of the industry segment
revenues.
Increased competition amongst broadcasters: With new channels
being introduced at regular intervals, there is increased competition
amongst broadcasters, for viewership and advertising revenue. This
coupled with high content and marketing costs is expected to impact
the profitability of broadcasters in the medium and long term.
Increasing penetration of DTH (Direct-to-Home): There has been
rapid growth of DTH subscribers in the last few years. This trend is
expected to continue over the next few years. However, operating
profits are still negative for the industry, due to high customer
acquisition costs, and is expected to remain this way untill a critical
mass of subscribers is reached. Major DTH service provider in India
are : Dish TV, Airtel Digital, Reliance Digital, Videocon, Sun TV,
Tata Sky.
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17. Major Problem of Indian Film Industry
Piracy is the Major or main problem of Indian Film Industry.
India is becoming as one of the biggest hub of film piracy.
India is ranked fourth in the world when it comes to Illegal
downloads, behind US, UK and Canada.
Indian film industry is losing nearly $1000 million (Rs 5000 Crore) in
revenue on a yearly basis
Indian film industry is losing nearly 6,00,000 jobs due to piracy
Piracy of cinematographic works takes two principal forms, namely
`video piracy' and `cable piracy’.
Video piracy takes place when a film is produced in the form of video
cassette without taking proper authorization from the right holder i.e.
producer.
Many times producers of films sell video rights to another party
(generally after six weeks or more of release in theatres) who makes
video cassettes for selling or lending.
The video cassettes kept for sale are meant for home viewing only.
Any commercial use of such cassettes like in video parlours or in
cable networks amounts to copyright violation.
Cable piracy is unauthorized transmission of films through cable
network. As mentioned above, showing a film in a cable network
requires acquisition of proper authorization from the right holder.
But many a time, films , especially the new releases, are shown
through cables without such authorization, which tantamount to
piracy.
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18. ANALYSIS
Contribution of Film Industry to the Economy
Direct Contribution to the Economy:
Gross Output Gross Value Net Indirect Employment
Added (GVA) Tax
Rs. USD Rs. USD Rs. USD Lakh
Crores Million Crores Million Crores Million
Indian 12,312 2,709 2,132 469 800 176 1.4
Film
Industry
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19. Total Contribution to the Economy:
Gross Output Contribution Employment
(GVA+NIT)
Rs. USD Rs. USD Lakhs
Crores Million Crores Million
Direct 12,312 2,709 2,932 645 1.4
Impact
Indirect 8,154 1,794 3,914 861 2.8
Impact
Total 20,467 4,503 6,846 1,506 4.2
Impact
GVA= Gross Value added, NIT= Net Indirect Tax
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20. Contribution of Television Industry to the Economy
Direct Contribution to the Economy
Gross output EBITDA Wages Gross Value
added(GVA) =
EBITDA+Wages
Rs. USD Rs. USD Rs. USD Rs. USD
Crore million Crore million Crore million Crore million
TV 1,500 330 120 26 60 13 180 40
Production
TV 15,283 3,363 3,057 673 1,375 303 4,432 975
Broadcasting
TV 26,763 5,668 (149) -33 2,033 447 1,885 415
Distribution
Total 42,545 9,361 3,028 666 3,469 763 6,497 1,429
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21. Total Contribution to the Economy
Gross Output Contribution Employment
(GVA+NIT)
Rs. Crore USD Rs. Crore USD Lakh
million million
Direct 42,545 9,361 7,348 1,617 4.24
Impact
Indirect 28,178 6,200 13,525 2,976 9.62
Impact
Total 70,723 15,561 20,873 4,592 13.86
Impact
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22. Revenues of Film and TV Industry
(Rs in Crore)
Year Film Industry TV Industry Total
2008 24,470 10,700 35,170
2009 26,750 11,800 38,550
2010 29,800 13,200 43,000
2011 33,200 14,700 47,900
2012* 37,200 15,900 53,100
2013* 42,000 18,500 60,500
* =Expected
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23. Revenues of Film and TV Industry (in Rs. Crores)
70000
60000
50000
40000
TV Industry
Film Industry
30000
20000
10000
0
2008 2009 2010 2011 2012E 2013E
23

24. Revenue Breakdown of Indian Film Industry
Revenue Breakdown
9%
8%
Domestic Box Office
6%
Ad Revenue
2%
Cable and Satellite rights
Home Video
Overseas box office
75%
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25. Indian Film Industry
Domestic Box office Collections
14000
12000
10000
8000
13233
6000
11550
10890
9825
8775
4000 8125
2000
0
2008 2009 2010 2011 2012 2013
Domestic Box Office (Rs. Crore) Column1 Column2
Domestic box office collections are projected to increase to Rs. 13,000
crores (USD 2.8 billion) by the year 2013, growing at a CAGR of 10%. This
growth is primarily attributable to the growth in average ticket prices,
projected to increase from Rs. 25 (USD 55 cents) in 2008 to Rs. 40 (USD
88 cents) by 2013.
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26. Indian Television Industry Revenue
45000
40000
35000
30000
25000
20000 42000
37200
33200
15000 29800
26750
24470
10000
5000
0
2008 2009 2010 2011 2012E 2013E
Column2
As per estimates, it is expected that revenue will be around 42,000 crore by
2013.
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27. FINDINGS
Lakhs of people are getting employment from both the Industries
(directly or indirectly)
Digitalization has helped a lot the industry in getting revenue from
new sources.
Piracy is a major or main problem of the film industry.
People are losing lakhs of jobs due the piracy of movies.
Penetration of Television in household is increasing day by day.
Local cable operators are dominating the market.
Direct to home service has helped a lot the Television industry.
Foreign entertainment companies such as Fox, Disney etc. are also
interested in Indian film industry. These companies are also investing
crores of rupees in India.
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28. CONCLUSIONS
On the basis of study, we can conclude that Film and TV
industry is one the major important sector of the economy.
Lakhs of people of different background getting employment in
different fields of the Industry.
Digitalization has helped a lot the Industry.
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29. APPENDIX
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30. GLOSSARY
Gross Output: This represents the total value of goods and supplied
by the entities in the industry. This is measured by the aggregate
revenues of all companies in the industry.
Note: Gross Output as a measure, is different from the total
consumer spend in the industry, and may vary based on the industry
structure. However, the measures of "Gross Value Added", "Net
Indirect Taxes" and "Employment" would remain the same,
irrespective of industry structure. This has been further explained in
the methodology section of this report.
Gross Value Added ("GVA"): This factor measures the returns to
labour and capital, i.e. the value of output generated by the entity's
factors of production. This measure, along with the Net Indirect Taxes
indicates the industry's contribution to the economy.
Net Indirect Taxes ("NIT"): Indirect taxes (net of subsidies) paid by
the industry.
Employment: This measures the number of workers that are
employed in the industry.
30

31. BIBLIOGRAPHY
1. "Economic Contribution of Indian film and Television industry",
prepared by PricewaterhouseCoopers, March 2010.
2. "Spotlight on India's Entertainment economy", prepared by Ernst &
Young, October 2011.
3. http://www.indiaglitz.com/channels/hindi/article/55508.html
4.http://ibnlive.in.com/news/media-sector-added-6-bn-to-indian-
economy/111750-7.html
5. http://www.financialexpress.com/news/piracy-a-serious-threat-to-indian-
film-industry/592752/
6.
http://copyright.gov.in/Documents/STUDY%20ON%20COPYRIGHT%20PI
RACY%20IN%20INDIA.pdf
7. http://en.wikipedia.org/wiki/Film_industry
8. http://en.wikipedia.org/wiki/Television_in_India
9. http://www.wipo.int/ip-development/en/creative_industry/pdf/ecostudy-
canada.pdf
31