Bollywood Reaps Benefits of Tranformation
Until recently, Bollywood had few legitimate sources of film finance; money came from underground sources with the heavy strings attached. Piracy was rampant. The star system created a financially precarious situation. And marketing was nonexistent.
According to the "FICCI-KPMG Indian Media and Entertainment Industry Report 2011," Bollywood is finally seeing the fruits of corporatization.
"Corporatization has helped build scale and [give] sustainability to the business," Anil Arjun, CEO of Anil Ambani Group company Reliance Mediaworks, told Indian business daily The Economic Times.
Following the Hollywood's franchise method, Bollywood has opened up box-office sales for revenue with ancillary revenue streams such as in-cinema advertising, sale of cable and satellite rights, licensing and merchandising.
With the deregularization of film production, exhibition and distribution, most of the major Hollywood studios are in the country in one form or another. The number of requests from foreign crews for shooting films in India has gone up greatly. As a result, Indian firms are making significant investments in infrastructure facilities.
Download the complete 182 page report prepared by FICCI & KPMG titled "Hitting the High Notes" here.