Bollywood business model

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Bollywood business model

  1. 1. ANKIT SHARMA ROLL NO. D – 49 BATCH 2012-14 SIMS , PUNE
  2. 2. Business Model in BollywoodSCRIPT PRODUCER/STUDIO CD/DVD SHOOTING RIGHTS OF BROADCASTING DIGITAL PRINT LICENSING AGREEMENT WITH DISTRIBUTION COMPANY SCREENING (THEATERS) DISTRIBUTORS MOVIE SHOW THEATERS TICKETS SOLD
  3. 3. Business/Industry Metrics for Bollywood1. 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. 4. 6. No. of Screens per million population : 127. 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 Price6. 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. 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 Croressatellite and Rs. 12 crore. Rs. 19.5 Croresmusic rights Screens 1000 1800 Marketing Election Banners (innovative), Starcast, strategy Word of MouthMerchandise Not Undertaken Dabangg merchandise across India
  6. 6. Criteria Gangs of Wasseypur (1&2) Dabangg Market New Market Segment created Masala movie segment, Cashing Segment from Small Town India on StarcastProduction, Actors , Producer, Distributor all Actors , Producer, Distributor allDistribution 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 townsDistributor 12 crore ( for GOW – 1) 77 crore— the second highest share ever in Bollywood

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