South Cinema - Overview & Opportunities

The ABCs of
South Cinema
THE MARKET IN NUMBERS
BEYOND THE NUMBERS
BRAND PARTNERSHIPS IN AND OUT OF FILMS
THE FACES OF SOUTH CINEMA
TARGETS AND RECOMMENDED ACTION
THE TEAM
Intellectual Property of South Republik

THE MARKET
IN NUMBERS

MarketSizeMedia&EntertainmentIndustry
 The Media & Entertainment industry in South India was estimated at INR 23,900
Crore in FY 2013.
 According to Deloitte, the market is expected to grow at a CAGR of 16% to
reach INR 43,600 Crore by FY 2017.
2013* 2014E 2015E 2016E 2017E
CAGR
(2013–2017)
Total 23,900 27,800 32,700 38,100 43,600 16%
Television 13,470 16,540 20,180 24,090 27,960 20%
Print 6,680 6,950 7,540 8,260 9,020 8%
Film 2,680 3,010 3,370 3,780 4,220 12%
Radio 420 460 560 690 830 19%
New Media 690 850 1,050 1,290 1,600 23%

TheSouthby4inFilm
Andhra Pradesh (aka Tollywood)
2013 Revenues: 1,150 cr.
Number of Releases: 256
Number of Theatres: 1,400
43%
Karnataka (aka Sandlewood)
2013 Revenues: 150 cr.
Number of Theatres: XXX
7%
Kerala (aka Mollywood)
Number of Theatres: XXX
6%
Tamil Nadu (aka Kollywood)
Number of Theatres: 900
44%
TV comprises 56% of the Media and Entertainment
(M&E) in the South
BUT
the films and film stars are the heart of the industry in
the South creating and driving the best M&E content –
AND it is BIG
 The south account for 50% of total number of
certified releases with 831
 There are over 3000 number of theatres
 In 2013 total revenue was 2,689cr.
 Deloitte has estimated the market grow at a CAGR
of 12% through 2017 to reach 4,220cr.

Bollywood
RACE GURRAM
*ing Allu Arjun, Shruti Haasan
April 11th 2014
40 Crores
98 Crores Worldwide (Net Rev)
2 STATES
*ing Arjun Kapoor, Alia Bhat
April 18th 2014
35 Crores
NAAN SIGAPPU MANITHAN
*ing Vishal, Lakshmi Rai
April 11th 2014
28 Crores
Tollywood Kollywood
v/s v/s
Three“Woods”–SimilarNumbers–Tier1

Bollywood
Venkatadri Express
*ing Sundeep Kishan, Rakul Preet
29th November 2013
10 Crores
Hasee Toh Phasee
*ing Siddharth Malhotra, Parineeti
Feb 7th 2014
25 Crores
Maan Karate
*ing Shiva Karthikeyan, Hansika
April 4th 2014
16 Crores
Tollywood Kollywood
v/s v/s
Three“Woods”–SimilarNumbers–Tier2

BEYOND THE
NUMBERS

TrendsinSouthCinema
 Going Digital: Almost all films are being shot in digital which is allowing quick distribution across various
media.
 Big + Small: 40% of films are big budget films but smaller films with innovative subjects are gaining
popularity
 Straight to TV: Due to the high cost of marketing, films are going straight to TV and making money on
C&S rights. Hindi film industry has taken cognizance of the high entertainment value of South Indian films
and has been remaking several successful Tamil and Telugu films
 Cheaper C&S: rights for a well produced Hindi film are usually double the cost of a Telugu or Tamil
film. So these films are dubbed into Hindi and other regional languages broadcasting all over India
 Production Houses: Slowly productions houses are making films in the South but most are made by
single producers.
 South Indian Diaspora: The huge South Indian population abroad is constantly demanding South
Cinema. NRIs tend to be more affluent and willing to spend during visits or on family in India as well as
consume international products that are available at home and abroad

ImpactofSocialMedia
Vijay’s Kaththi
amassed over
10 million hits
Allu Arjun’s
Race Gurram
18 million hits
Kajal Aggarwal
14.5 million followers
Rana
Daggubati (tier
2 hero)
7 lakh followers
Yenni Arindhaal
official teaser 3.6 million
views and counting…
Arya & Nayantara’s
song from Raja Rani
2.5 million hits
When fans can’t see their stars on the screen the turn to
social media for everything they can get.
NTR Jr.
Shruti Haasan

BRAND
PARTNERSHIPS
IN AND OUT OF
THE FILM

In-FilmMarketing–whereitstands
Visual Background Placement – it happens
 Brand appears in background or is used, without highlight of logo
 This is the most common form of in-film branding in the South
 Common examples – Product Hoardings, Malls, Shops, Hospitals, Banks. For Instance: Lalithaa
Jewellery in Lingaa
Challenges –
 Weak associate with hero which decreases
impact
 Not always placed properly
 Lack of consistent use of brand (Maruti in one
scene and Tata in the next)
Advantages –
 Production houses are familiar with this
method

Visual Hero-Character Association – it seldom happens
 The brand is highlighted around and with the hero
 This is not done very often in southern market but is familiar to production houses
 Common Examples – Close shots of Mobile phones, cars, bikes used by the main lead.
For instance, Yamaha Integration in Siddharth’s NH4
Challenges –
 Ensuring the placing and using of the product is done properly
during shoot and in post-production
 Calls for association before the shoot is commenced to have
placement through out the film and across the star cast
Advantages –
 Plenty of opportunities to well-place brands in
coordination with production house
 Hero does not personally have to endorse the product

Audio Reference by Hero-Character – it never happens
 When the hero references the product without it being present
 This is most often an indirect reference but can be a direct endorsement
 Example – Product jingles as part of script – mobile operator jingle every time a mobile phone rings in
the film.
Challenges –
 Some actors will be hesitant in making direct
endorsement but many okay if just a reference
 Collaboration with director to make sure the
lines and delivery are effective
Advantages –
 Can be introduced into the script at any
stage
 Almost no limits in what product can be
endorsed
 Can create a great impact when done in
a clever or funny way

Visual/Audio Hero-Character Endorsement – good luck to you
 When a the hero mentions the product and shows the product at the same time
 This is almost always an endorsement
 Example – Shahrukh Khan in Chennai Express for Nokia
Challenges –
 A list heroes & heroines will hesitate to do this
especially when not paid extra
 Expensive (should be done in conjunction with
other marketing to get maximum effect
Advantages –
 Undeniably has the greatest impact on
the audience

Co-BrandedMarketing
Leveraging an existing star-value to promote your product via advertisements across all media
 Only three or four cases in all of South Cinema where this has been done
 Due to high cost of film promotion/marketing, the market is ready for this type of partnerships
Challenges –
 Producers not familiar with this type of
promotion and expect money instead
Advantages –
 Out of film partnership – not dependence
on script or schedule of film
 Easy integration with any film regardless
of subject
 A-List film associations available every
month with little lead time

THE FACES
OF SOUTH CINEMA

BoxOfficeAppeal
 Heroes are the key to box office success in South cinema
 Fans are fanatical about their heroes
 Movie watcher pack the halls to see their heroes over
and over again
 Directors are your second biggest box office draw
 A films style and action keeps people coming back for
more
 Heroines, with very few exceptions, have much less impact
on box office success
 Less screen time than in Hindi films
 It is common that there is more than one female lead

HeroesofTollywood
Ram Charan
3 Film Avg. Gross: 55 – 60 Crores
Top 3 Films: Magadheera,
Rachcha, Naayak
• Torch Bearer of Mega Family,
‘Mega Powerstar’
Allu Arjun
3 Film Avg. Gross: 50 Crores
Top 3 Films: Race Gurram, Julayi, Arya
Qualities: Style, Good Dancer.
• Known as “Stylish Star”
Mahesh Babu
Top 3 Films: Dookudu, Businessman, SVSC
Qualities: On-Screen Magic. Face of the
South
 Endorses 16 brands
NTR
Top 3 Films: Baadshah, Brindavanam, Simhadri
Qualities: Good Dancing, Dialogue Delivery
 “Young Tiger” Scion of the NTR family
A+
Prabhas
Top 3 Films: Mirchi, Mr. Perfect,
Darling
Qualities: Shy, the “Rebel Star”
 Has more women fans than any
other hero.
A+ A
A+
A+
Pawan Kalyan
Top 3 Films: Atharinitiki Daredi,
Sabbar Singh, Kushi
Qualities: Power Star, Crowd Magnet.
 Unprecedented power at the box office
A+

HeroesofTollywood
Naga Chaitanya
Top 3 Films: Manam, 100%, Yem
Maaya Chesaave
Qualities: boy next door, sweet
 Next in line to carry ANR legacy
Sundeep Kishan
Top 3 Films: Venkatadri Express,
Routine Love Story, Joru
Qualities: Boy next door charm
Rana Daggubati
Top 3 Films: Krishanm Vande Jagaduru,
Leader
Qualities: 3rd Gen in film legacy. Busy across
North & South Cinema
Manchu Manoj
Last Film Gross: 25 Crores
Last Films: Current Theega,
Qualities: Has critical accolades, vibrant &
brings high energy to screen
B+
B+
B+
B+
Ravi Teja
Top 3 Films: Power, Balupu, KIck
Qualities: Hero of the Masses. Crowd puller for B
& C markets.
 Akshay Kumar & Salman Khan have remade
his films into Rowdy Rathore & KICK
A
Sai Dharam Tej
Last Film Gross: 22 Crores
Last Films: Pilla Nuvvu Leni Jeevitam
Qualities:
 Next Gen Mega Family. Fan Following
Comes by Default.
B+

Heroes of Kollywood
Kamal Hassan
Top 3 Films: Vishwaroopam,
Dasavatharam, Vettaiyaadu
Vilaiyaadu
Qualities: intelligent roles
Vikram
Top 3 Films: Anniyan, Kanthaswamy,
Raavan
Qualities: great actor, intense, roll
diversity
Vijay
Top 3 Films: Kaththi, Thupaki, Nanban
Qualities: insane following among the fans.
Assured openings
Dhanush
Top 3 Films: Velaiyilla Pattathari, Aadukalam,
Raanjhanaa
Qualities: good fast dancing, good actor
A+ A
Rajni Kanth
Top 3 Films: Endhiran, Sivaji, Chandramukhi
Qualities: style, charisma,
 God of South Cinema
A+A+
A+
A+
A+
Suriya
Top 3 Films: Singam 2, Mattran, Ayan
Qualities: strong on-screen presence,
style
A+

Heroes of Kollywood
Karthi
Top 3 Films: Saguni, Paiyaaa, Biriyani
Qualities: Younger brother of Suriya
rules the multiplex cinema circuit with
classy scripts. Endorses Bru & Airtel.
Jeeva
Top 3 Films: Ko, Endrendrum Punnagai,
Neethaane En Ponvasantham
Qualities: Fantastic Connect with multiplex
cinema
‘
Siddharth
Top 3 Films: Aayitha Ezhuthu, Udhayam NH4,
Jigarthanda
Qualities: Girls go gaga over him. An intense
actors who can pull a comic role with élan.
Vishal
Top 3 Films: Theeradha Vilaiyattu Pillai,
Sandakozhi, Avan Ivan
Qualities: Action hero. Heavy Appeals to both
B & C markets
A
A
Simbhu
Top 3 Films: Manmadhan, Vallavan
Qualities: Dance, Dialogues & on-screen
attitude. He remains in news both on & off the
screen
A
Aarya
Top 3 Films: Raja Rani, Madrasapattinam,
Naan Kadavul
Qualities: Can fit in any script. Comedy,
Fantasy, Action. Consistent BO deliveries.
A
A
A

DirectorsofTollywood
Tollywood Kollywood
S S Rajamouli
Top Films: Eega, Magadheera, Vikramarkudu
Trivikram
Top Films: Atharintiki Daredi, Julayi, Athadu
Harish Shankar
Top Films: Gabbar Singh, Mirapakaya
Srinu Vaitla
Top Films: Dookudu, Baadshah, Ready
Puri Jaganadh
Top Films: Businessman, Badri, Pokiri
Surender Reddy
Top Films: Race Gurram, Kick
Sukumar
Top Films: Nenokkidine, 100% Love, Arya
A R Murugadoss
Top Films: Kaththi, Thupaki, Ghajini
Gautam Menon
Top Films: Vettaiyaadu Vilaiyaadu, Yennai
Arindhaal, Ek Deewana Tha
Lingusamy
Top Films: Anjaan, RUN, Aanandham
K S Ravikumar
Top Films: Lingaa, Dasavataram, Aadhavan
Vishnu Vardhan
Top Films: Aarambham, Billa, Arinthum
Ariyamalum
Hari
Top Films: Poojai, Singham 2, Singham
Selva Raghavan
Top Films: Irandam Ulagam, Aayirathil
Oruvan, Mayakkam Enna,

HeroinesofTollywood&Kollywood
They do still matter…
Kajal Aggarwal
Rakul Preet Singh
Shruti Haasan Anushka Shetty
Tamannah
Nayanthara
Samantha
Nithya Menen
Regina Cassandra
Hansika

TARGETS AND
RECOMMENDED
ACTION

Types of Films
Hero: A+
Director: A+/A
Budget: 60-90 cr.
Number of Screens: 1,800
Days in the Theatre: +75
A+
Hero: A
Director: A+/A
Budget: 40-60 cr.
Number of Screens: 1200
A
Hero: B+
Director: A/B+
Budget: 15-25 cr.
Number of Screens: 400-600
B+
In South Cinema, regardless of the monetary or critical success,
you can be assured of exposure 95% based on only a few
variable

PrimaryTargets In-Film Branding –
Fewer opportunities and significant negotiations
to find mutually beneficial deals
 Visual Background Placement 1
 Visual Hero-Character Association 2
 Audio Reference by Hero-Character 3
 Visual/Audio Hero-Character Endorsement 3
Co-Branding Marketing – 2
Producers expect money but can be
persuaded to accept promotion only
A
B+
In-Film Branding –
Lot of opportunities where producers are
always interested
All forms of media possible as well as in-
person hero/heroine on-ground promotions
 Working with A and B+ movies
gives your more flexibility and
options for types of in-film and co-
branding opportunities
 You get better return on
investment associated with more
A and B+ films than with just a few
A+ films.
1 – Easy
2 – Possible
3 – Difficult But Possible
4 – Extremely Difficult
5 – Not Possible Without
Significant Investment

WhenOpportunityPresents…
A+ films are still great opportunities to associate with brands but
the conditions need to be right –
 If the hero or heroine is already associated with the brand
 Brand is willing to pay significant amount of money for in-
film branding and good budgets for co-branded
marketing
A+
In-Film Branding –
Less flexibility in how brands are portrayed in
films as compared to expectation of brands
Fairly easy to develop but producers expect
money beyond marketing expenses.
1 – Easy
2 – Possible
3 – Difficult But Possible
4 – Extremely Difficult
5 – Not Possible Without
Significant Investment

THE TEAM

People&Services
‘MEDIA & MARKET RESEARCH’
‘CO-BRANDING & BRAND PARTNERSHIP STRATEGY’
‘PRODUCT PLACEMENT’
‘ANIMATION & MULTIMEDIA’
‘SOCIAL MEDIA’
‘MEDIA STRATEGY & PLANNING’
‘ENDORSEMENTS’
‘BRANDED CONTENT’
‘CREATIVE OOH SOLUTIONS’
20 years of advertising experience. Decade in planning
and buying and decade in creating content for brands
Jainardhan Sathyan
16 years experience in Media Strategy and Sales.
Specialisation in South Indian markets
Monika Sathyan
15 years experience in TV Commercials, Multimedia &
Animation
Vikas Sethi
10 years experience in Marketing. 8 years of specialisation in
Entertainment, Digital Content Publishing & Social Media
Sameer Choudhary

Reach Us
sameer.choudhary@southrepublik.com
+919885566617

South Cinema - Overview & Opportunities

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