The Indian film industry is one of the largest in the world with over 1000 movies released annually. It has grown at a 9% compound annual growth rate and contributed 0.6% to India's GDP. Major foreign film studios like Sony, Warner Bros, and Disney have entered partnerships and joint ventures with Indian producers for financing and distribution. This allows Indian filmmakers access to global markets while foreign producers gain exposure to India's large audience. However, the industry remains fragmented and faces issues like piracy, lack of modernization, and uneven wealth distribution.

1. …. a presentation

2. …. a presentation Written, Directed & Narratedby: Aviral Pundir 10810015 Piyush Jain 10810043 VaibhavAggarwal 10810066

3. Why to talk about Bollywood?

4. Indian Film Industry is one of the world's largest with more than 1000 movie releases and over 3 million movie goers annually. Indian film industry stood at ` 90 billion in 2009.The industry is projected to grow at a CAGR of 9 per cent and reach ` 150 billion by 2014. The Indian Media and Entertainment (M&E) industry contribute 0.6% to GDP. Eleventh five-year plan allocates ` 2.25 billion to the development of film project.

5. CAGR 9%

6. Film business – through the years

7. Before 1960’s: Limited number of production houses. Actors were employees of the production houses. Part financing from the distributor.

8. 1960’s to 2000’s Star system evolved. By 1970’s, Mumbai’s underworld had grown in size and influence. Black money demanded sure shot success of the films.

9. 1960’s to 2000’s By the end of 1970’s some creative directors started a new line of low budget movies called “art movies.” During this period, very few ‘big stars’ started their own production. The risk was too high and the return was too low.

10. 2000 onwards: In 1997 PVR had started its chain of multiplexes. ‘Multiple choice of movies under one roof’ encouraged even low budget movies to do good business.

11. 2000 onwards: Entrance of foreign production houses. Rise in number of corporations interested in film business. Journey towards being a recognized sector.

12. Foreign Associations in Hindi film Industry

13. Foreign collaborations started with NalaDamyati in 1920 with an Italian production. Currently Sony Pictures, Warner Bothers, Fox Entertainment and Disney are working in India. Many of these are in joint ventures with local producers and distributors for their home country productions. 100% FDI is allowed in movie production.

16. What Bollywood gains from foreign associations

17. Global platform for local filmmakers Abundant funds reduce dependence on underworld’s black money Synergy between local and foreign talent

18. My Name is Khan

19. What foreign producers gain from these associations

20. Visibility in the huge and till now untouched market. Distribution framework for their home productions. Support to Hollywood during recession.

21. Corporatization of Hindi film industry

22. Profit earned by Zee TeleFilms with Gadar in 2000 started the trend of corporate entering into film business. ADAG’s Reliance Big Pictures acquired Adlabs films, now reliance media works in 2005. Reliance Big Pictures also has 50% stake in DreamWorks.

23. What Corporate adds to the Film industry Vertical Integration. Structured financing at cheaper rates. Availability of insurance. Reduced influence of Mumbai Underworld.

24. Issues facing the film industry Fragmented market. Illicit finance. Differential entertainment tax. No will for technological advances. Uneven distribution of wealth in film industry. Piracy. Low revenue compared to Hollywood.

25. SWOT Analysis of Bollywood Strength:Weakness: Large customer base Film production sector highly Low cost of production and high fragmented. Revenue. Lack of distribution infrastructure Growing upper middle class so Lack of penetration in lower socio- Great future. economic class Opportunities: Threats: Rapid de-regulation in industry. Piracy, violation of intellectual property rights pose a major threat to the film making companies Global persepective are brighten. Lack of quality content

26. PestlAnanlysis Political: The treaties with other countries concentrate on sharing of costs by partner nations and also the dispersion of technical know-how amongst the partner nations.

27. Economic: Presence of an English-speaking workforce, high-quality software engineers, a large pool of creative talent, good studios and low costs is encouraging animation industry in India.

28. Social: Almost 35 per cent of India’s over 1 billion population is illiterate. There is great demand from this segment of Indian population for an innovative medium that facilitate communication and information sharing, while at the same time.

29. Technology: There are not many academic institutes which provide technical training for film production. Only National School of Drama and National Film and Television Institution produce world class technicians.

30. Legal: With foreign production houses coming up in India the legal issues are becoming consequential. Legal industry is booming for film industry

31. Piracy The Indian film industry lost Rs.43000 million and 571,896 jobs due to piracy. Rs.16,000 crores are lost due to piracy in total. Motion Pictures Association (MPA), has been unofficially operational in India for the last 15 years. In 2010 MPA announced its first India office to be set up in Mumbai, called the Motion Picture Distributor's Association India (Pvt.) Limited (MPDA), under the directorship of Rajiv Dalal. United Producers and Distributors Forum trying to enforce anti-piracy laws by conducting raids across the country.

32. Reasons:- Deferring of movie release dates. Technological development. Low per capita income.