A presentation on UTV motion pictures

2. Company Profile
• UTV Software Communications Ltd. is an Indian media
and entertainment company. It is owned by The Walt
Disney Company India Pvt. Ltd., a subsidiary of The
Walt Disney Company.
• It started out as UTV Software Communications Pvt.
Ltd. in 1990 as a producer of television content and ad
films for Doordarshan, before becoming public in 1995
and renaming itself as UTV Software Communications
Ltd. With the advent of Satellite television in India it
started producing content for Zee Television. After
venturing into in-flight entertainment programming,
television post-production, special effects & animation,
television broadcasting, it went into movie production
and distribution business under the name UTV Motion
Pictures.

3. • Although the subsidiary was launched in 1996 and the
first film was produced in 1997 (“Dil Ke Jharoke Mein”),
the company actively started producing and
distributing films only 2000 onwards.
• In 2011, The Walt Disney Company bought out stakes
held by public shareholders and other promoters of the
company in a deal valued around Rs 2,000 crore
making UTV a wholly owned subsidiary of the group.
• Today, the UTV Group looks into 5 verticals namely –
• Television Content
• Motion Pictures
• Games Content
• Broadcasting
• Interactive

4. Introduction
• The UTV Group has pioneered the studio model in
India. A studio model is a system where one enters
with a script, and once it is approved, everything from
availing of production resources to final sales and
distribution of the movie is taken care of by the
creative personnel of the company.
• They have always supported novel story ideas and
backed movies without a big start cast which led to the
development of a new breed of film making in the
country. Some of these films are – ‘Dev D’, ‘Oye Lucky
Lucky Oye’, ‘A Wednesday’ and ‘Khosla Ka Ghosla’.
These movies not only got critical acclaim but also did
well commercially by sheer strength of content.

5. • In 2008, a special sub-division of the company- UTV
Spotboy was launched to make movies which are low
on budget and star cast, but high on content. Movies
like ‘Aamir’, ‘Welcome to Sajjanpur’ and ‘Paan Singh
Tomar’ are some of the movies produced by this sub-
group. The success of these movies led other leading
production houses in the country to adopt a similar
model.
• Their business spans the integrated model of creative
development, production, marketing, distribution,
merchandising and syndication worldwide. UTV’s
portfolio includes Hindi Movies, Regional Movies,
Animation Films, International productions and co
productions, besides an exclusive distribution
arrangement for India with The Walt Disney Company.

6. • One of the first Indian companies to produce and
distribute movies abroad, UTV has co-production
agreements with several international production
houses like Overbrook Entertainment and Sony
Pictures Entertainment.
• In 2008-2009, UTV Motion Pictures became the first
Indian Studio to co-produce a mainstream Hollywood
movie - M. Night Shyamalan's “The Happening”. Not
only this, UTV also distributed Disney's productions –
“Confessions of a Shopaholic” and “Bedtime Stories” in
India. This coupled with innovative marketing
initiatives and a concentrated campaign to leverage
value across existing and new media platforms, further
reinforced their stature as not only the leading motion
picture producers in India, but also the most
innovative.

7. • Along with production, UTV successfully
distributes its movies in more than 45
countries around the world on the same day
as their theatrical release in India. UTV Motion
Pictures accomplished the feat of being
among the Top 20 Distributors in North
America and is the first Indian film studio ever
to have crossed the US $5 million revenue
mark in the first half of a year, thus redefining
the scope of overseas distribution of Indian
films.

8. Total Market Size of Indian Movie Industry
• The size of the Indian film industry is estimated
at Rs 13000 crores growing at a CAGR of 11.5 per
cent. Out of Rs 13000 crores, the domestic box-
office collections account for Rs 9877 crores with
overseas box-office, ancillary rights and home
video making up the balance.
This growth is primarily attributable to the
growth in average ticket prices, increasing from
Rs 25 (USD 55 cents) in 2008 to Rs 40 (USD 88
cents) in 2012.

9. THE INDIAN FILM INDUSTRY
Domestic Box-
office
Overseas Box-office

10. Market Share of UTV
• If we consider the entire Indian market then
UTV would have a market share of around 5%.
A country which makes over 900 films in a
year with Independent Producers still forming
a large chunk, this is an adorable market
presence.

11. COMPETITORS ANALYSIS
– Yash Raj Films
– Dharma Productions
– Viacom 18
– Mukta Arts Ltd.
– Excel Entertainment
– Aamir Khan Productions
– Red Chilies Entertainment
– Tips
– Venus
– PVR
– Reliance Entertainment
– Balaji Telefilms
– Eros Entertainment

12. In the regional film domain
• Prasad Art Pictures
• Padmalaya Studios
• Geetha Arts
• Sri Venkateswara Creations
• Madras Talkies
• Bharat Bala Productions
• Gemini Studios

14. • However, unlike its counterparts in Hindi Film
industry UTV has been one of the first production
houses to realize the importance of regional film
market and has already started making films in
South Indian and Marathi languages. Some of the
regional films produced by UTV in the recent past
are Harishchandrachi Factory (Marathi), Vettai,
Kanaamochi Yenada (both Tamil) and Eanadu
(Telugu)
• UTV has also realized the importance of
collaboration in creative business and
continuously ties-up with major production
houses in making and distributing movies. Some
of the companies it has frequently collaborated
with are Dharma Productions, Aamir Khan
Productions and Excel Entertainment.

15. Market Profitability
• The total profits before tax (PBT) generated by
UTV motion pictures in a single year is over
Rs. 500 crores (it was Rs. 524 crores in 2010).
The following profit comes through total
revenue generated through theatrical release,
satellite distribution, music, home video sales,
film merchandise and internet downloads.

16. Industry Cost Structures
• The total cost of production of a film, including its
publicity cost, can vary from 5 crores to 50 crores
depending on the content and star cast. UTV
follows the Hollywood model of production and
reserves as much as 40% of the film budget for
publicity alone.
• An experimental film like ‘Paan Singh Tomar’
based on the true life story of an athlete-turned-
dacoit may cost only Rs. 6 crore while a film like
‘Guzaarish’ having an A-list star cast (Hrithik
Roshan and Aishwarya Rai) may cost up to Rs. 70
crore.

17. • Films like ‘A Wednesday’, ‘Dev D’ which was
produced by UTV with minimalistic budget
ended up generating over 100% profit on
their budget.
• While UTV distributes its own films and later
on releases it on its own broadcasting
network, it is difficult to gauge how it goes
about generating revenues when it comes to
distribution and satellite rights of films
produced by other production houses.

18. Market Trends
• With the advent of Satellite television, the
viewers were becoming increasingly aware of
the quality of movies abroad. Success of films
likes ‘Hyderabad Blues’ and ‘Satya’ (1998)
paved the way for similar movies in times to
come.

19. • The success of ‘Dil Chahta Hai’ (2001) started a
new wave of cinema in Bollywood which catered
to urban milieu.
• UTV was quick to foresee the change and backed
anybody who had a different story to tell. It knew
that if they kept the budget low, the revenue
generated from multiplex would help them break
even.
• The results were unprecedented. These movies
started giving them over 100% profit. The size of
the niche market was not limited to multiplex
going audience alone, but rubbed its effect in
interiors of the country as well.

20. Future Growth
• The industry is growing at a CAGR of 11.5 %.
Around 70% of the revenue still comes from
theatre viewership. DVD, VHS, cable, satellite and
pay-per-view make up for the rest of the revenue.
The theatrical revenues continue to grow at 17 %
while the satellite revenues are growing at 22%.
With improved digital technology and stringent
laws to curb piracy and additional 600 crores INR
may get added to the revenue.
• The estimated market size is expected to be
Rs.17000 crores by the end of 2014 with
Rs.12400 crores coming from domestic Box-office
collections alone. The Overseas box-office is
supposed to grow up to 1450 crores INR.

21. Conclusion
• UTV has always been a frontrunner when it
comes to innovation in movie business. It
pioneered a specific kind of films in India, started
a new trend in movie production and distribution
and most importantly brought discipline in an
otherwise disorganized industry. Hopefully, with
the world waking up to the talent that lies in India
and potential of India as a market for movie
business, we will be seeing UTV spearheading the
movement in putting India on the world map in
the film business through more international
collaborations in the future.