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Bollywood Business Model Explained
1. Business Model - Bollywood
Writer - Movie
Script,
Dialogues and
song writing
Producers,
Studio
Houses,
Independent
Investors
Film Shooting
Director Shooting ,
Sound
Locations
finalizing , Movie
Actors
Recordings Music,
Promotion
Distributors
Beginning of supply Chain
Distributors
Subsidies
Depending on factors like state
etc.
Theatrical Television Digital
Multiplex , Single screens Satellite, cable, terrestrial DVD, online, IPTV, mobile
Customers
Urban , rural, U, U/A,, A
Success/
Failure
Revenues
3. Business Metrics - Bollywood
Production Cost •Above the Line- Creative talent, Below the Line – Direct costs
•Post Production – Editing, visuals etc., Others – Insurance, bonds
•Age – Kids, youth, adults
Target Audience •Genre – Comedy, drama, action, thriller, sci-fi, romantic etc.
•Region – Urban and rural
Marketing Expenses •Advertisements, hoardings, promotional campaigns, merchandizing etc.
• Number of screens movie released in India and abroad
Screening (single screen & multiplex)
Viewership • Number of tickets sold on the 1st day of release
4. Business Metrics - Bollywood
• Box- office collection on the 1st day of release
Opening (revenue)
• Given by various newspapers, magazines , film critics etc.
Rating
Success Run • The running period of the movie in theaters.
(weeks)
Total revenue • Total box – office collection of the film
Verdict • Hit or Flop based on the collections and reviews generated
5. Metric Dabangg Gangs of Wasseypur
(Part 1 & 2)
Production Cost Rs 45 Cr Rs 18.40 Cr
Target Audience Family Entertainment Adult
Marketing Expenses Rs 14 Cr Rs 23 Cr
Screening India – 1850 1200
Abroad - 250
Viewership Metros – 80-85% Metros-15-20 %
Semi – urban - Houseful Delhi - 70-80%
Semi-urban - Houseful