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Bollywood business model
1. ANKIT SHARMA
ROLL NO. D – 49
BATCH 2012-14
SIMS , PUNE
2. Business Model in Bollywood
SCRIPT
PRODUCER/STUDIO CD/DVD
SHOOTING RIGHTS OF
BROADCASTING
DIGITAL PRINT
LICENSING AGREEMENT
WITH DISTRIBUTION
COMPANY
SCREENING (THEATERS)
DISTRIBUTORS
MOVIE SHOW
THEATERS TICKETS SOLD
3. Business/Industry Metrics for Bollywood
1. There are about 15,000 Screens in the cities = 8,000 in
Southern India +7,000 in the North India. out of 15000
approximately 1000 screens are multiplex.
2. Size of film industry = 1.8 billion (2010)
Growth = 9% p.a.
3. Fourteen million Indians go to the movies on a daily basis
(about 1.4% of the population of 1 billion).
4. Industry Status granted : 100% FDI approved. Entry of banks
and institutional funds in film-making. So, funds available at
low rate. Producers still prefer private finance.
5. Digital Revolutution : Digital print duplication costs about
one-twelfth (nearly Rs. 5000) as compared to the celluloid
prints at Rs. 60,000.
4. 6. No. of Screens per million population : 12
7. Average Ticket price range from Rs. 90-140. Price of tickets
are increasing due to emergence of multiplexes.
8. Net Collection of Distributor : 32.5 % of Ticket Price
Net Collection of Producer : 29% of Ticket Price
6. Increasing disposable income, growing popularity of
alternate delivery mediums, digitalization of film distribution
and value added services like movie on demand through pay
television are set to open up new revenue streams and
business models for the film industry.
10.
5. Comparative Analysis
GANGS Vs. SUPERCOP
CRITERIA Gangs of Wasseypur (1&2) Dabangg
BUDGET Rs. 18.40 (production) + 6 Rs. 30 (production)
(marketing) Crores +12(marketing) Crores
Revenue Rs. 48 Crores *still counting Rs. 215 Crores
satellite and Rs. 12 crore. Rs. 19.5 Crores
music rights
Screens 1000 1800
Marketing Election Banners (innovative), Starcast,
strategy Word of Mouth
Merchandise Not Undertaken Dabangg merchandise
across India
6. Criteria Gangs of Wasseypur (1&2) Dabangg
Market New Market Segment created Masala movie segment, Cashing
Segment from Small Town India on Starcast
Production, Actors , Producer, Distributor all Actors , Producer, Distributor all
Distribution not related by family related by family
Theme Realistic, Content oriented, more Comic book like, Peppered with
connected to mafia the mandatory desi tadka of
songs and dances with star
charisma
Region Most Sales in Mumbai and Delhi Most Sales in Metros, also in
Tier 2-3 towns
Distributor 12 crore ( for GOW – 1) 77 crore— the second highest
share ever in Bollywood