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Sunday, December 31, 2006

Bollywood Made a Substantial amount of Revenue in 2006

The year 2006 was very successful for Bollywood as many hit moves have released this year and some emerging new stars were appeared in various movies. Moreover, the year is also very successful in terms of earning revenue. Actually getting hit movies and earning good revenue are not same either. Now-a-days earning there are many sources of earning revenues. I am quoting some lines regarding the sources of earning revenues from a financial express report:

“The compound annual growth rate of the Hindi film industry is expected to be 25% in 2007,” says Mahesh Ramanathan, CEO, Percept Picture Company.

Films (big or small) no longer depend only on one avenue for revenues — film producers have found several ways to recoup their investment — from satellite rights, in-flight entertainment rights, music and overseas rights to home video and merchandising. Most filmmakers can actually make their money before the release.

Says Ramanathan: “Non-traditional sources of revenues will contribute to a significant amount: given that films have earned as much as Rs 1 crore from wireless rights. Airborne rights are also gaining in importance and there is a lot of revenue there. Overseas box-office will grow as more prints of films will be released globally, and might contribute to 40% of a film’s revenue. Internet-based rights (movie/music downloads) are big sources of revenue.”

As this year producers could make a good amount of money then the next year they can invest more and with feeling comfort. Seeing the financial success new producers may come to the industry which is also good news for Bollywood. In addition, the investment in the movie or film based business will definitely be increased in the next year. The report says:

“Music downloads/ mobile downloads have given the Hindi film music industry a much-needed boost in 2005-6. Production houses are venturing into the home video/movie downloads sector themselves for more revenue. Five years ago we had 40 million satellite homes, today we are hoping to touch 70 million, so satellite rights are crucial and going to fetch us big revenues. In the overseas sector about 20% growth could be expected by 2007. Another thing that will drive the growth of revenues is the growth of multiplexes,” says Ravi Gupta, CEO, Mukta Arts.

“There will be 40% more multiplexes in 2007. Most big production houses will have three/four releases that are expected to earn big money. Net downloads of films, video-on-demand, home video, satellite rights add to the numbers. It will be a big year, hopefully, for the Hindi film industry,” feels Aasish Saksena, COO, Film Cell, PVR Cinemas.

However, comparing with Hollywood this revenue is much less and Bolywood has to do a lot to be compared with Hollywood in terms of revenue. The report shows:

“But Bollywood still has miles to go. In 2005, Hollywood’s US box office collections alone were $8.99 billion. In comparison, the Indian box office took in $1.14 billion. Unlike India’s buoyant software industry or its booming real estate market, which has attracted an estimated $6.3 billion in foreign investment, the Hindi film industry has not made it easy for Hollywood studios to gain access or finance their films. It is another matter that a company like Infosys did almost as much in sales in 2005 as all of Bollywood.”

However, this year Bollywood got an extra pace and if this continues in the coming years then who knows, one day Bollywood can surpass Hollywood.


2 comments:

wtvr said...

wtf....just give us a freaking #....not a whole essay

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