Study: Indian film industry to $5 bil by 2011
EmptyNEW DELHI -- The Indian film industry is expected to reach $4.5 billion to $5.1 billion by 2011, rising 25% per year, according to a new study jointly commissioned by industry body Confederation of Indian Industry and global management consultants A.T. Kearney.
The study, "The New Economics of the Indian Film Industry: Creativity and Transformation," was released Thursday at the two-day CII film industry conference in Goa, "India -- The Big Picture."
The conference falls on the eve of the 38th International Film Festival of India, which opens Friday and runs until Dec. 3.
The study predicts that international boxoffice revenues will contribute 15% of total revenues for Indian films by 2010, up from 8% in 2006. Seven out of 14 foreign-language films that grossed over $2 million at the U.S. boxoffice in 2006 were Hindi films.
"The Indian film industry is on the threshold of a transformation driven by digitization and changing customer preferences which will have a significant impact on business models," said Saurine Doshi, partner at Mumbai-based A.T. Kearney India.
The study predicts that boxoffice revenue will decline as part of overall revenue, decreasing from 84% in 2006 to 77% by 2010 and 60% by 2020.
"This is due to the emergence of new channels and increasing touch points to access film content, penetration of home video, Internet media and mobile," explained Doshi, pointing out that the share of revenue from home video, IPTV and Internet will grow from 8% in 2006 to 30% in 2020.
The study also offers new business models where entertainment majors would span content creation, aggregation and distribution, a trend already reflected by existing players such as Mumbai-based Adlabs Films.
Once large prestigious Indian production houses start corporatizing, "they will attract companies like Time Warner, Walt Disney and Viacom who are aggressively looking to enter film production in India as partners," according to the study.