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ANKIT SHARMA
  ROLL NO. D – 49
   BATCH 2012-14
    SIMS , PUNE
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
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.
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.
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
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
Bollywood business model
Bollywood business model

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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