1. THE INDIAN FILM INDUSTRY
Films are the most popular form of entertainment. India is now the largest producer of films in the world.
Since 1931, the film industry has produced more than 67,000 films in more than 30 different languages and
dialects.
The film industry recorded a loss of Rs. 3 billion and gross revenues of Rs 39 billion have been recorded in
2002. But, it is expected to grow annually by 19 per cent to reach Rs. 93 billion by 2007. The industry
produced 1200 films in 2002, and 1,013 films in 2001, up from 855 films in 2000. While Hindi films
continued to be the largest segment in 2001 (23 per cent share), south Indian language films (Telegu, Tamil
and Malayalam) have seen a considerable growth.
Last year’s actual revenue was only Rs. 39 billion. High- profile movies from 2002 such as Devdas and Mr.
And Mrs. Iyer did not bring in as much cash as expected. The number of films made annually is expected to
fall, leading to an increase in the average revenue per movie.
Problems faced:
Shortage of cinema halls
India has around 12900 cinema screens (a UN Study). This leads to a serious shortage of screening facilities
in India. Even the existing screens aren’t technically upto the standards required. Many of them are being
shutdown or sold off. The economics for a multiplex works better. The success rate for movies has gone down
drastically since the last year. States like Rajasthan, Maharashtra, Haryana, Uttar Pradesh and Madhya
Pradesh have been given tax breaks for multiplexes. Halls with smaller capacities also are better for niche
films.
The government has in recognition of this fact, given tax breaks to multiplexes built in the rural areas and
non-metros.
1

2. Tax structure
India has a very lop sided entertainment tax structure. Though SIMCON has recommended a maximum of
60% in each state, in states like Gujarat, it is as high as 100%.
Improvement of existing movie theatres
The cinema halls need to be renovated so that more viewers are attracted to watch films there. As per the
current market trend most hall owners don’t earn enough to be able to upgrade their theatres. The solution to
this could be flexible ticket pricing. Black marketing of tickets is a common feature in India. A system could
perhaps be introduced whereby the film industry, or the theatre owners derive this advantage. This can
possibly be achieved by introducing the concept of flexible pricing of tickets. Theatres should be allowed to
collect higher revenues for more popular movies by temporarily increasing or decreasing the ticket prices, as
the case maybe. This would generate higher revenues for the industry, which in turn would encourage them to
spend more to upgrade the standards.
Lack of adequate infrastructure for movie production
There is a serious dearth of movie production facilities in India. Most of the movies are produced at shoestring
budget. Though there are adequate creative ideas, implementation is poor. The primary cause is lack of
facilities. Examples like Ramoji Rao City Studio in Hyderabad, Whistling Woods from the house of Mukta
Arts are recent examples of where the country is headed.
Financing
In terms of volume, India produces the largest number of movies in the world. But the Film industry structure
has been highly non-corporatised till date. It has generally been family run companies with no access to
institutional finance. Finance is tapped from family friends and other sources with high rate of interest (upto
40%) being charged.
2

3. With the Film industry being granted the official ‘industry status’, it has propelled companies like
Mukta Arts to go in for institutional sources. Still not many Film companies have availed finance
from these sources. This is because corporate structure in place is a pre requisite for such a
venture. This means that the company has to clearly define the following:
Documented scripts in place
• Legally enforceable contracts with the artists and technicians
• The entire time schedule documented
• The producer has to make sure the filming activity is completed in time and there are no time and cost
overruns.
Companies like Hinduja TMT, which has earmarked Rs 20 crores for Film financing this year, and UTV
which made Fiza, are entering this arena while the emerging finance sources encourage corporates to invest:
These sources of finance are available only to companies and not to individuals, thus the need for
corporatisation.
CII & CRISIL are also working at developing a financing model that would enable the banks to weigh the
risks in this industry.
Gloabalisation:
Globalization of the industry can be achieved in the following ways:
• Production: India has a large resource pool of talent, esp. for animation. Another area where India stands at
an advantage is providing locations for shooting. The cost advantage and the technical expertise for offer can
act as comparative advantages for India.
• Market: Indian films have always found market in Singapore, Malaysia, Indonesia and Europe. Success of
films like Monsoon Wedding and international recognition of Lagaan is just some examples.
• Technology: while the technological capabilities and expertise are improving, the costs are decreasing. India
can act as a hub for postproduction development of films.
3

4. The requirements to achieve them would be to improve infrastructure for institutional funding and improve
the infrastructural set up in the country. Government’s help would be required in improving the facilities in
the form of better policies and improved access to funding. Right now a bank would approve a loan for a
film in six months’ time during which a movie may be complete.
Piracy:
Indian film industry loses about Rs.300 crores annually to piracy. While efforts are on to curb the menace, the
technological evolution is making it increasingly difficult to keep pace with the anti piracy measures.
Indian Film CDs (pirated) reach India just on or even before the official release of the movie in India. These
originate outside India, mainly in Dubai where they are sent a week before the release for the Censorship
Board’s approval. This is the point of leak and one master copy is enough for supply all across the country.
The industry is worried that while the avenues of piracy are increasing at an alarming rate and the laws are
either inadequate and where they aren’t, the problem is enforcement. The fines paid when caught are
inadequate and so is the punishment. They also cite the non-cooperation of cable operators as a major
handicap in their efforts to curb piracy.
The cable industry on the other hand finds it difficult to check it on its own. The nature of piracy in the
Entertainment industry is such that since the consumer demands the pirated product, the administration finds
it difficult to check it. The cable operators cite this reason among others as to why it is difficult for them to
control it. If one operator does not showcase a pirated movie, the consumer switches to the other. And since
there isn’t strict enforcement of the laws, there is not disincentive for anyone to stop showing such movies.
The operators claim that even the film industry is not clear as to which rights are to be given to the cable
operators and how to distinguish them from satellite rights of movies.
The need of the hour is thus a single platform where the stakeholders, policy makers and consumers’
representatives can sit across a table and discuss solutions. The enforcement of laws has to be made stricter
and where the laws are inadequate, they need to be put in place. Public campaign condemning piracy needs to
be carried out. And piracy has to be made a prohibitive activity to carry out in terms of punishment.
4

5. The Movie Industry
Movie studios makes movies. The movie studio then relies on a third party for distribution, for most of
the marketing and, in some cases, for finance and investment. The first step from studio to market is
bridged by international sales companies. They buy the rights for a film and license it to domestic
distributors, who then oversee the final step to cinema or TV screen.
The Challenge
The range of choices made available by technology and market diversity present sales companies with
limitless opportunities for licensing. A full return on an investment is only achieved if this licensing
process is as flexible as it is thorough. A sales company cannot afford to return from a film market
only to find that a third of its library of 150 films was underexploited because the administrative task
of issuing multiple licenses was overwhelming.With this administrative hurdle cleared, the respite
from paperwork is all too brief, as royalty statements from the licensed films start to arrive. Each
statement based on a different contract, with a unique combination of territories, distribution channels
and time frames, with income offset against advances paid by the licensees. Collection societies like
those
who streamline the music industry’s royalty process simply don’t exist in the movie world.
Checking each contract, clause by clause, dollar by dollar is often an impossible task. Many movie
companies are forced to rely on random audits to check license compliancy. Domestic distributors
undertake the lion’s share of promotion and marketing – money that has to be offset against receipts –
as well as the manufacture of videos and DVDs. They will also seek out and negotiate sub-licenses to
TV networks. Month by month, receipts stream in and need to be tallied, checked and paid onwards as
royalties. While their counterparts in the record industry enjoy the relative comfort of drawing up
artists contracts on their own familiar and relatively standard terms, a domestic film distributor may be
dealing with tens, even hundreds, of sales companies with very different ideas about how and when
royalties
5

6. are payable. Some may involve advance payments triggered by events scattered
throughout the lifetime of a film’s release. In some cases it only takes the emergence of a new
distribution medium — like DVD — to topple an already complicated structure of contracts and
payables. Finally, all the players must contend with a film’s all-too-frequent changing of hands, as
libraries and companies both domestic and international are split up, rebranded and resold.
23. Operational Risks
a) Reduction in costs of CDs/VCDs.
With fall in prices of CD/VCD players, consumers increasingly prefer to view new films on
CD/VCDs. The illegal screening of new films by cable operators has worsened the matter.
However, recent enactment of Anti-Piracy law by the Tamil Nadu Government, which can
book an offender under Goondas Act,1982 may provide some added protection against piracy
and may bring higher numbers of viewers to the theatre.
b) Competition from other segments of entertainment sector.
In recent years, new types of entertainment like amusement parks, bowling alleys, go-karting,
water sports, resorts etc. have emerged as alternative sources of entertainment and may
threaten viewer ship of films.
c) Piracy
Pirated movies represents more than half of industry off-take since it is a cheaper
alternative to the Company’s original products. This phenomenon is hurting the industry not
only in India but worldwide. Indian Industry is working closely with local law enforcement
agencies and has been successful in organizing many raids and seizures. The Government
Authorities are also increasingly becoming conscious about this menace. Recently, the State
Government of Tamil Nadu has covered such piracy under the Goondas Act, 1982 acting as
effective deterrent to the pirated products. Notwithstanding this, the consumers have become
aware of the hazards using such pirated products.
d) Competition from developer of similar technology for webcasting
Company is dependent on the technology developed and owned by Drushya Entertainment
Broadcast Streams Limited (Drushya) for webcasting of films. Any development adversely
6

7. affecting its technology and its rights may also adversely affect future business of the
Company.
Management would keep its options open for a tie up with a superior technology developer in
such an eventuality
CURRENT SCENARIO OF FILM INDUSTRY.
Film entertainment is the most popular form of entertainment and it is this undiminished passion through
the decades that has driven India to become the largest producer of films in the world. Since 1931, when
talkies were introduced in the country, the film industry has produced more than 67,000 films in more than 30
different languages and dialects.
The film industry grossed a turnover of Rs 3,900 crore (Rs 39 billion) in 2002. The current worth of the
industry is pegged at Rs 4,500 crore. A market survey conducted in march by accounting firm Ernst and
Young has predicted that the film industry is expected to grow at the rate of 18 per cent annually to gross Rs
10,000 crore in the next four years. The Indian film industry is the largest in the world in terms of number of
films produced and also in the number of tickets sold.The industry produced 1200 films in 2002, and 1,013
films in 2001, up from 855 films in 2000. Bollywood’s annual ticket sales world wide are 3.8 billion as
compared to Hollywood 2.8 billion. But Hollywood's revenue is much higher because ticket rates in india are
among the lowest in the world. While Hindi films continued to be the largest segment in 2001 (23 per cent
share), south Indian language films (Telegu, Tamil and Malyalam) have seen growth in their shares. Times of India
India’s movie industry is a great sector for foreign investment by corporatised entertainment companies.
Though risks are high on a per-movie basis, the risk spreads out across a number of films. However, the
domestic film-making industry, despite its profligacy, is yet to acquire the character of professionalism on a
large scale.
7

8. According to the FICCI report on the Indian Entertainment Industry for 2002, the Indian film industry
employs more than 6 million people, most of whom are contract workers as opposed to regular employees.
This statistics cannot however be used to calculate the movie industry’s share in the GDP or employment
generation. This is because a vast proportion of the turnover takes place outside the legal economy.
SIZE OF THE INDUSTRY
A FICCI report 2002 on the Indian Entertainment Industry prepared by Arthur Andersen India Ltd.
states that it is difficult to accurately determine the size of the Indian film industry because unlike in the
developed economies such as the U.S. and U.K., costs and revenues for films in India are not monitored by
any nodal agency. Therefore, the size of the industry has been estimated using two different approaches –
estimation of total costs and estimation of total revenues.
Cost and Revenue figures for the film industry for 2002
Average
Number of
Movies
Total
Gross
Value
INR
Billion
Less: Theatre
Share –
distribution
Commission
INR billion
Revenues
INR
Total
Costs
INR
Hindi
mainstream
75 16.5 6.4 10.1 12.8
Cross-over
Hindi
15 0.9 0.4 0.5 0.4
Foreign
movies
15 0.8 0.4 0.4 NA
Malayalam 93 3.7 1.8 1.9 2.3
Tamil
mainstream
84 5.9 2.8 3.1 3.3
Telegu
mainstream
74 5.9 2.8 3.1 3.3
Bengali 50 0.5 0.2 0.3 0.3
8

9. Other Films 150 0.9 0.4 0.5 0.5
Others 640 3.2 1.5 1.7 1.6
*US $ 1 = INR (Indian Rupees 48)
(Source: KPMG and FICCI Report – Indian Entertainment Sector in the Spotlight.)
COST-BASED APPROACH
This comprises artists’ remuneration, production expenses, technicians expenses, marketing expenses, studio
charges, and other fixed costs.
REVENUES BASED APPROACH
The revenue models of Indian film makers have undergone a fundamental shift in the future with a
higher probability of exploiting alternate revenue streams as opposed to relying on domestic theatre
viewership revenue stream. Some of the new revenue possibilitie are overseas theatre viewership, home video
segment, satellite rights, music rights and in-cinema advertising amongst others.
The Indian films can be sold for fewer territories than a typical US film. While the domestic theatrical
rights can be sold for five to ten different sub-territories, for a fixed time period, the overseas, music, and
C&S TV rights are usually sold to a single distributor respectively. Unlike the U.S. where home video
distribution contributes 32 per cent of the total revenue, an Indian
film generates negligible revenue from this source because of the unorganised rental/ state market and piracy.
Overseas Rights
Overseas rights include overseas theatrical rights as well as overseas video and television rights, which
are presently sold by film producers as a package to overseas distributors. The last few years have seen Indian
movies gain immense popularity overseas. The major export destinations continue to be the U.S.A., Canada,
9

10. and the U.K., countries such as Japan, South Africa, Mauritius, Australia, New Zealand and the Middle East
are fast becoming important export markets for Indian films.
Music Rights
The music industry whose fortunes are closely interlinked with the film industry is likely to grow at
approximately Rs 16.4 billion by 2007. As per industry sources, sale of music rights contributed Rs 1.5 billion
to film industry revenues. Music rights include the domestic and international music rights of a film, which
are sold by the film producer exclusively to music companies. As new film music contributes more than 4 per
cent of the music industry revenues, music companies compete to procure the music rights of new films from
reputed production houses.
Cost of Music rights of some films
Music Company Producer
Cost
(Rs mn)
Films
Sa Re Ga Ma Yash Chopra 15
For 3 films - Saathiyan,
Mere Yaar Ki Shaadi hai,
Mujhse Dosti Karoge
Tips Mukta Arts 85 Yaadein
Sony
Karan Johar
Aamir Khan
Dreamz
Unlimited
120
60
60
Kabhie Khushi Kabhie Gham
Lagaan
Asoka
Universal
Sanjay Leela
Bhansali
120 Devdas
(Source: FICCI Report 2002 - Indian Entertainment Industry)
10

11. Telecasting and video rights
In the near future, the home entertainment segment, broadcast TV, DVD and VCD is expected to
increase its share, even as multiplexes emerge as a strong distribution platform. The share of satellite rights in
the consolidated revenue pie has grown from 4 per cent to 14 per cent between 1999-2002. Even channels
have started a new trend by acquiring and broadcasting new titles at exorbitant prices, within 3 to 4 months of
their release. As telecasting blockbuster films is an effective way of driving up viewership, there is a demand
for these channels to acquire television rights of hit films.
Corporate Sponsorships and Merchandising:
Corporates have also started marketing their products through films. And in exchange film makers get
additional revenue in the form of Corporate Sponsorships. For example, Mukta Arts had earned Rs 35 million
from Coke, Pass Pass and Hero Cycles for product endorsements in Yaadein. Today revenues are also
generated from the sale of Internet rights and merchandising. FICCI Report 2002- Indian Entertainment Industry
Revenue Break up segment wise
(Rs. bn)
Domestic theatrical sales 36.00
Overseas theatrical rights 5.25
Music rights 1.50
Telecasting and video rights 2.00
Corporate Sponsorship/ Merchandising 0.10
TOTAL 44.85
Source: FICCI Report 2002 - Indian Entertainment Industry
11
Domestic
theatrical sales
Overseas
theatrical rights
Music rights
Telecasting and
video rights
Corporate
Sponsorship/
Merchandising

12. Source: FICCI Report 2002 - Indian Entertainment Industry
TYPE OF FILMS.
REGIONAL FILMS
According to the Economic Times Entertainment Report 2001-2002 after Hindi films, the Telegu film
industry is perhaps the biggest, followed by the Tamil film industry in terms of revenue generation, though in
number of films released, Tamil outranks Telegu. Together, they are called the “Tollywood” film industry.
What sets this segment apart from the rest of the industry is its high degree of discipline. The average time for
making these films is 4-9 months.
The producers and directors, along with the artistes do a lot of homework before making a film. The
entire script of the film is usually ready before shooting begins and the artistes know their roles clearly. Since
the artistes are usually involved in filmmaking, they give continuous dates to the producers. As a result, none
of the South-based artistes take up more than 2 films a year, as opposed to many Hindi artistes who make 4-6
films in a year.
One more peculiarity of the Tamil and Telegu films is the increasing proportion of integration in the
industry. Ramoji Rao owns a studio and a post-production facilities in Hyderabad. Many top production
houses in the South are owned by artistes. Thus, unlike the Hindi film industry, in A category films, the
artistes have more clout and are involved in the entire process of film making. These artistes also have a
substantial control on the script. Artistes like Rajnikant also control the theatres, albeit indirectly. The Tamil
and Telegu industry is more integrated than the Hindi industry in many ways, with fewer players and the top
players controlling the industry both in terms of value and volumes. In this respect the Tamil and Telegu film
industry is similar to international film production houses.
12

13. One major difference between the Hindi and South based films is the extent of star worship. Films are
classified under the various categories mainly based on the star cast. For example, in Telegu films in which
famous actors like a Chiranjeevi or Nagarjuna or Venkatesh or Balakrishna or Alu Arvind star would be rated
as A category, irrespective of the director and the film producer. The other top stars are Mohan Babu, Pavan
Kalyal and Mahesh Babu. Then there are a lot of other actors like Jagapati Babu, Srikanth, Prakash Raj and
Naveen, who are not as big and do one to two good films in a year. These may be rated as B films.
Amongst the banners, Suresh Productions, run by D. Rama Naidu and his son Suresh is one of the
most respected. This production house has done more than 100 films for which it has entered the Guiness
Book of World Records. The other main production houses are Usha Kiran Movies of Ramoji Rao, Anjana
Productions of Chiranjeevi, Geeta Art Films of Alu Arvind, Annapurna Studio Private Ltd of Nagarjuna and
his father – the legend and Nageshwar Rao, Padmalaya Production of Mahesh Babu and his father Krishna
and Laxmi Prasanna Productions of Mohan Babu.
In the South based film industry in general and the Telegu film based industry in particular, the
production houses are mainly owned by the top stars, who do at least one to two films for their own
production houses in a year. This trend is slowly entering the Hindi film industry too. There are star directors
like Raghavendra Rao, S.V. Krishan Reddy and B. Gopal, whose films are A class. Finally, there are a
number of independent films producers like C. Ashwin Dutt and Subhiram Reddy who make big budget A
grade movies.
In Tamil films, Rajnikant has a special category of his own. He falls perhaps in the super A category.
Rajnikant produces his own films. He works on the principle of selling a film at areasonable profit so that
everybody involved in the movie makes a winning. His films usually carry the names of 4-5 producers, who
are mainly needy people. His film “Padiaappa” did a business of Rs 320-350 million. The entire film was
made for Rs 60 million and was sold for close to RS 250 million. Of the film profits, he usually reserves 35-
40 per cent for charity. The rest goes towards his fee for the film. With close to Rs 100 million per film, he is
one of the highest paid actors in the country.
The other major banners in Tamil films are Supergood Films, which makes movies under Oscar
Movies Banner, Mani Ratnam who makes movies under Madras Talkies Banner and Kamala Haasan’s home
production. Shankar, who was a director till recently is the most sought after and number one director in
Tamil films.
Another aspect of the Telegu and Tamil films is the large inter-lingual market. Films in either of the
languages usually get dubbed in the other language.
13

14. OTHER REGIONAL LANGUAGE FILM PRODUCTION
The other regional languages have not made a substantial dent in the market, though they collectively
total close to Rs 2 billion to Rs 3 billion. These films are similar to B and C class films in Hindi, Telegu or
Tamil languages, though their subject might be more social and their appeal more universal. The reason for
such low budget films is the low cost of artistes and technicians. These films do not have special effects and
graphics, they usually use stock music, they have very few songs and hardly any outdoor shoots. Moreover,
these films cannot afford to have very high costs as their target audience is only one or two states and they
rarely have an overseas market. However, some Punjabi films like “Shaheed Udham Singh” and “Guru
Gobind Singh” have done reasonably well internationally, but these are exceptions.
In terms of value, among the regional languages, the order is Kannada, Malyalam, Bengali, Gujarati,
Marathi, Punjabi, Oriya and others. Kannaada and Malyalam films have a market in Middle East countries
and the USA where a substantial population from the respective regions resides. Most of these films have
been made at very low budgets and in most cases all these films have one or two artistes, who act in each of
the films. These artistes have a huge public
following and their films usually get a very good reception and make money.
In Bengali films, Devyank Arts owned by Dilip Karkaria is a renowned production house having
produced 8-10 films in the last 4-5 years. All these films have cross-border appeal and have been dubbed in
Bangladeshi Bengali. The biggest actor in Bangla films is Prasenjit, son of Biswajeet, an icon of Hindi films
in the yesteryears. Similarly, in Gujarati, Mahesh and Naresh Kanodia and Upendra Trivedi are popular
artistes, while Govindbhai Patel is a well known producer. Unlike Hindi, Tamil and Telegu films, the regional
film industry is mainly dominated by one or two artistes and production house, who make the bulk of the
films. The Indo-Italian Chamber of Commerce and Industry
14

15. BRIEF HISTORY OF INDIAN FILM INDUSTRY
 The Beginnings
In 1886 the Lumiere Brothers Cinematographe unveiled six soundless short films at Bombay's Watson's
Hotel. Soon after, Hiralal Sen and H.S. Bhatavdekar started making
films in Calcutta and Bombay, respectively. Like Lumiere Brothers
Bhatavdekar made India's first actuality films in 1899. Tough there
were efforts at filming stage plays earlier India's first feature film Raja
Harishchandra was made in 1913 by Dadasaheb Phalke who is known
as the Father of Indian Cinema. This was a silent movie.By 1920 there
was a regular industry bringing out films starting with 27 per year and
reaching 207 films in 1931.
 Advent of Sound
By the time of the First World War, and the phenomenal expansion of Hollywood, 85% of feature films
shown in India were American. But the introduction of sound made an immediate difference. In 1931, India's
first talkie, Alam Ara, was released, dubbed into Hindi and
Urdu. As the talkies emerged over the next decade, so too did a
new series of issues. The most prominent of these, of course,
was language, and language markets; alongside, there are
considerations of regional identity, of the different places
that separately and together make up India. Many films of the
time were produced both in the regional language (Bengali,
Marathi), and in Hindi, so that they could be oriented to the larger Hindi-speaking market. The Indian public
quite naturally preferred to see films made in their own language and the more songs they had the better. In
those days, the films made had upto 40 songs.
15

16.  The 1950s
By the start of the 1950s, Calcutta became the vanguard of the art
cinema, with the emergence of the film society movement at the end of
the 1940s and Satyajit Ray's Pather Panchali/Song of the Road,
produced with West Bengal state government support in 1955.
International recognition came with Satyajit Ray's Pather Panchali
in 1955. Satyajit Ray is considered as one of the greatest directors
of all times. Post-independence, despite a relatively sympathetic government enquiry in 1951, the industry
became the object of considerable moral scrutiny and criticism, and was subject to severe taxation. A covert
consensus emerged between proponents of art cinema and the state, all focussing on the imperative to create a
"better" cinema. The Film and Television Institute of India was established at Pune in 1959 to develop
technical skills for an industry seen to be lacking in this field. However, active support for parallel cinema, as
it came to be called, only really took off at the end of the 1960s, under the aegis of the government's Film
Finance Corporation, set up in 1961 to support new film-makers.
Ironically, this pressure and vocal criticism occurred at a time when arguably some of the most interesting
work in popular cinema was being produced. Radical cultural organizations, loosely associated with the
Indian Communist Party, had organized themselves as the All India Progressive Writers Association and the
Indian People's Theatre Association (IPTA). The latter had produced Dharti ke Lal/Sons of the Soil (KA
Abbas; 1943), and its impact on the industry can be seen in the work of radical writers such as Abbas, lyricists
such as Sahir Ludhianvi, and directors such as Bimal Roy and Zia Sarhady.
In addition, directors such as Raj Kapoor, Guru Dutt and Mehboob Khan, while not directly involved with
IPTA, created films that reflected a passionate concern for questions of social justice. Largely studio-based,
the films of this era nevertheless incorporated vivid stylistic experimentation, influenced by international
currents in film-making. Such effects are evident in Awara/The Vagabond (Raj Kapoor, 1951, script by KA
Abbas), Awaaz/The Call (Zia Sarhady; 1956) and Pyaasa/Craving (Guru Dutt; 1957).
The First International Film Festival, held in Bombay in 1951, showed Italian works for the first time in India.
The influence of Neorealism can be seen in films such as Do Bigha Zamin/Two Measures of Land (Bimal
Roy, 1953), a portrait of father and son eking out a living in Calcutta that strongly echoes the narrative of
16

17. Vittorio de Sica's Bicycle Thief (1948). Mehboob Khan's Andaz/Style (1949), an upperclass love triangle
founded on a tragic misunderstanding, draws on codes of psychological representation - hallucinations and
dreams that feature strongly in 1940s Hollywood melodrama. Mehboob's tendency to make a visual spectacle
of his material, and his involvement with populist themes and issues make him a good example of popular
cinema of the time.
 The Indian Popular Cinema and the Superstars
During the 1960s, popular cinema had shifted its social concerns towards more romantic genres, showcasing
such new stars as Shammi Kapoor - a kind of Indian Elvis - and later, Rajesh Khanna, a soft, romantic hero.
The period is also notable for a more assertive Indian nationalism. Following the Indo-Pakistan wars of 1962
and 1965, the Indian officer came to be a rallying point for the national imagination in films such as
Sangam/Meeting of Hearts (Raj Kapoor, 1964) and Aradhana/Adoration (Shakti Samanta; 1969).
However, the political and economic upheaval of the following decade saw a return to social questions across
the board, in both the art and popular cinemas. The accepted turning point in the popular film was the angry,
violent Zanjeer/The Chain (Prakash Mehra; 1973), which fed into the anxieties and frustrations generated by
the quickening but lopsided pace of industrialization and urbanization. Establishing Amitabh Bachchan as the
biggest star of the next
decade, its policeman hero is ousted from service through a conspiracy, and takes the
law into his own hands to render justice and to avenge his deceased parents.
The considerable political turmoil of the next few years, including the railway strike
of 1974 and the Nav Nirman movement led by JP Narayan in Bihar and Gujarat,
ultimately led to the declaration of Indira Gandhi's Emergency in 1975. It was as if the state and the people
had split apart. As the cities grew, so did the audiences. The popular cinema generated an ambiguous figure to
express this alienation. At the level of images, there was a greater investment in the stresses of everyday life
and, unlike the 1950s, in location shooting. In Zanjeer, the casual killing of a witness on Bombay's commuter
17

18. trains conjures up the perils of life in the metropolis. This is echoed in images of the dockyard, taxi-rank,
railtrack and construction site in Deewar/The Wall (Yash Chopra; 1975), also starring Amitabh Bachchan.
The recurrent narrative of these films, of protagonists uprooted from small town and rural families to the
perils of the city, is shared by the street children researched by professional sociologists in Mira Nair's
Salaam Bombay (1988). The Bombay films' very excesses, their grand gestures, and the priority given to
emotion and excitement may more truly reflect the dominant rhythms of urban life in India. At the level of
plot and character, however, the Bombay films simultaneously simplify and collapse our sense of India,
reducing the enormous variety of identity - social, regional, ethnic and religious - that makes up Indian
society. Where these identities appear, they do so as caricatures and objects of fun.
The Art Cinema of the 80s
To counter this, the art cinema of the 1980s diversified from its Bengali moorings of the earlier period under
the aegis of the Film Finance Corporation. Works by Shyam Benegal, Gautam Ghose, Saeed Mirza, BV
Karanth, Girish Kasaravaili, Mrinal Sen, MS Sathyu, Ray, and Kundan Shah, among
others, actively addressed questions of social injustice: problems of landlord
exploitation, bonded labour, untouchability, urban power, corruption and criminal
extortion, the oppression of women, and political manipulation. Ghatak in particular
had addressed many of these issues earlier, but never had there been such an
outpouring of the social conscience, nor such a flowing of new images - of regional
landscapes, cultures, and social structures. Many of the films may seem didactic and
uncomplex, undercutting the attention to form that had marked the earlier period - but
not all. Benegal's first two films indicate an unusual concern with the psychology of domination and
subordination. Ankur/The Seedling (1974), starring Shabana Azmi, is particularly striking not only for this but
also for the open, fluid way it captures the countryside. Among Kannada directors, working in south India,
Kasaravalli in Ghattashradha (1981) effected an intimate vision of the oppression of widows through the
view of a child. And special mention must be made of Kundan Shah's Jaane Bhi Do Yaaron/Let Sleeping
Dogs Lie (1984), a wonderful exercise in farce and slapstick that is also a brilliant portrait of Bombay.
18

19.  The South
The most notable of the directors who speak specifically about their own cultures, and about the possibilities
of change, are Adoor Gopalakrishnan and Aravindan from Kerala. A key to their productivity was the overall
development of film culture in Kerala, India's most literate state. In his films Gopalakrishnan transformed the
lush countryside, busy towns and animated culture of Kerala into a strange, dissociated place, fraught with
communicative gaps, menacing, inexplicable characters, and an overall sense of the impenetrable. Subjects
range from the mounting tragedies that beset a young couple in the city (Swayamvaram/One's Own Choice;
1972), and the effete authoritarianism of a declining feudal landlord (Elippathayam/The Rat-Trap; 1984), to
the mysterious spiritual decline of a popular communist activist (Mukha Mukham/Face to Face; 1987).
The late Aravindan, sometime cartoonist and employee of the Kerala Rubber Board, had something of the
mystic in him, but went through a range of styles, including a cinemaverite approach, as in Thampu/The
Circus Tent (1978), in which circus performers speak direct to the camera. His episode from the Ramayana,
Kanchana Sita/Golden Sita, places the action against the grain of the high Hindu tradition by situating it
among tribes in the verdant landscape of the Kerala forests. At his best, his narrative style refuses a didactic
approach, generating a whimsical sense of how destinies are shaped.
19

20. Full circle
The 90's saw the
 Indian Cinema come to a full circle with Hum Aapke Hain Kaun turning out to be the biggest grosser ever.
Indian cinema has come a long way from the shaky flickering images and grating noises and sounds to a very
sophisticated state-of-the-art technology for creation and projection of image and sound track. The film
industry has grown multi-dimensionally with unique blend of commerce, art, craft, star glamour, social
communication, literary adjuncts, artistic expression, performing arts, folk forms and above all a wide-ranging
and abiding appeal to the heart, the mind and the conscience. www.meadev.nic.in/earthquake/culture/films/intro.htm
Entertainment
The last decade has seen the Indian entertainment industry grow exponentially. The key drivers for
this have been technology and the government’s recognition of the importance of the sector. The
stage is now set for further evolution with a trend towards convergence, adding a new dimension to
entertainment. The industry is expected to grow at a CAGR of 27 per cent.
• Revenues are projected to increase to US$ 10 billion in 2005 from 3 billion in 2002.
India is one of the most media-exposed countries when compared to its Asian counterparts due to its
size and consequently a large consumer base.
20

21. • The Indian film industry is largest in the world in terms of number of movies produced. India
produces 800-900 movies every year in 52 languages and provides direct and indirect
employment to 5 million people.
• #9; The film Sector is one of the oldest industry in India. The first commercially successful
film was made in 1913. The exports of Indian films in the last few years have seen a dramatic
upward swing with the export earning for the year 2001-02 being in the region of Rs. 9 billion.
• The Government of India has accorded industry status to the film industry and FIs are
formulating funding mechanisms for financing films. Recently some major film projects have
received funding from FIs and banks.
• Many large production houses are embracing a corporate structure and there is a trend
towards adopting a professional approach in producing and marketing films in India and
overseas.
Television
• Television is a leading entertainment medium accounting for the largest slice of the urban
India’s media consumption pie (72% of total media consumption).
• Television software is also expected to grow in India as technology is affordable and
manpower cost is low.
• The Government of India has liberalised the uplinking policy to allow India to develop as a
centre for broadcasting.
• There has been a reduction in the rate of basic custom duties on the import of certain
specified equipment for setting up an earth station for broadcasting.
Opportunities
Opportunities for this sector exist across multiple categories of the entertainment industry.
• Film distribution is turning out to be a lucrative business.
• Television software content development is expected to experience healthy growth in the
coming years.
• The radio industry is witnessing several private FM channels being launched in many Indian
cities.
Indian capital market have rewarded Foreign Institutional Investors (FIIs) with attractive valuations and
increasing returns. Stock Exchange – the Mumbai Stock Exchange continues to be the premier exchange in
the country with an increase in market capitalization from US$ 40 billion in 1990-91 to US$ 203 billion in
21

22. 1999-2000. The stock exchange has about 6,000 listed companies and an average daily volume of about a
billion dollars
Entertainment - The last decade has seen the Indian entertainment industry grow exponentially. The industry
is expected to grow at 27% annually. Revenues are projected to increase to US$ 10 billion in 2005 from 3
billion in 2002. India is one of the most media-exposed countries when compared to its Asian counterparts
due to its size and consequently a large consumer base.
Entertainment Industry
The words that come to our mind when we think of entertainment are Pleasure, Fun and Relaxation.
Entertainment exists from the time man exists. He always found some way or the other to entertain himself.
Though the methods and sources of entertainment differed the essence remained the same that was to get
pleasure. We would say a lot has changed over the years in other words everything is getting more and more
modernized. But, yet the truth is that the basic mode of entertainment yet remains the same. Earlier the scope
of entertainment was narrower unlike today. Now services are available to entertain us in other words it is
commercialized.
All, young & old, rich & poor, man & woman, require entertainment. Every individual needs some
sort of entertainment in his life. Entertainment provides some sort of a change from the normal course of life.
Modern age, man has been found facing a number of problems. They are supposed to follow the busy
schedule to earn more and at the same time also required to be a high performer. Management of a family is
also important. This necessitates entertainment. The changes in the taste and temperament in the masses,
increasing disposable income, the changing lifestyle due to corporate changes has paved the way for the
development of healthy entertainment facilities. Opening of new air-conditioned cinema halls, open-air
theatres, drama centers, music centers, pub, club, art and handicraft and painting centers have been found
gaining popularity. Many entrepreneurs have been seen promoting entertainment services. By doing this, they
not only entertain the masses but also inculcate awareness, promote education, and develop knowledge. The
focus today is on development of entertainment services in a right fashion. In the Indian perspective, where
majority of the population is illiterate, it is the responsibility of the entertainment services to inculcate
awareness even in the rural areas of the country.
22

23. The entertainment industry in India has outperformed the economy and is one of the fastest growing
sectors in India. However, it registered a moderate growth of over 15 per cent in 2003. The FICCI-Ernst and
Young Study titled "The Indian Entertainment Industry: Emerging Trends and Opportunities", scheduled to be
unveiled during FICCI-FRAMES 2004 - the Global Convention on the Business of Entertainment on 15th of
this month at Mumbai, has projected that the industry will grow from Rs.19,200 crores in 2003 to Rs. 42,300
crores in 2008, at a compounded annual growth rate of 17 per cent.
Estimated Turnover of Entertainment Industry
19.200
22.608
26.945
31.634
36.690
42.300
0
10
20
30
40
50
2003 2004 2005 2006 2007 2008
Years
(in crores)
Estimated Turnover
(Source: Ernst and Young Study)
Zee Telefilms has secured top position in Indian entertainment industry with a market cap of Rs 4,739
crore and no one comes anywhere near. Media Matrix Worldwide, at No 2, is way behind with Rs 406 crore.
Top 5 Companies By Market Cap
Sector
Rank
Company
Market Cap
(Rs Crore)
1 Zee Telefilms 4,739
2 MediaMatrix Worldwide 406
3 Sahara India Mass Communications 387
4 Balaji Telefilms 357
5 Pentamedia Graphics
(Source: Economictimes.com)
Top 5 Media Companies By Net Profit
23

24. Sector
Rank
Company
Net Profit (Rs Crore)
1 Zee Telefilms 87
2 Balaji Telefilms 57
3 Padmalaya Telefilms 17
4 Adlabs Films 17
5 ETC Networks 14
(Source: Economictimes.com)
The role of the cinema in image building
The big screen, says Tareque Masud, holds immense possibilities for a nation. He presents his thoughts
on the issue.
Film is the youngest art form, but it is also the most evolved and complex. All art forms are essentially
reflections of life, but cinema reproduces life or reality more directly. It almost creates an illusion of life itself.
Cinema is also distinct at another level from other art forms. The concept of uniqueness and originality is the
core of value in most art forms. But film, by its very nature, is reproduced. It is replicated in great numbers
for a mass audience, so that many people in many different places can view it. This is the most decisive
departure of this new art form. As a matter of fact, film, and the audio-visual media in general, has
revolutionised the whole concept of art. It pervades every aspect of our lives. It is not only limited to cinema
halls, it also comes via satellite into our own living rooms. It is ubiquitous, and the most powerful art form of
today.
With its capacity to mirror life so literally, film reflects the social, political and cultural aspects of life
very powerfully. It also exerts its influence on society more directly. This influence not only has the power to
reveal truth, but also to hide it. It can expose people to harsh realities and truths, but it can also provide an
escape from the harshness of reality into a fantasy world. This is how cinema has come to be exploited as a
major vehicle of entertainment, as well as a full fledged commercial industry for a mass market. Since society
is reflected in cinema, the nature of cinema keeps changing. But cinema also has an impact on society. Proper
use of the medium of film can fight the insidiousness and mindless propaganda of the mass media. On the
24

25. other hand, violence in film can have a demonstrative effect and cause violence in society. Thus it can play a
destructive as well as a constructive social role. The language of cinema can be used for artistic and aesthetic
ends as well as for information and propaganda.
Film can play and has always played a critical role in shaping a national sense of purpose and identity. But
how much of this potential has been harnessed? How much has it been used as a vehicle for nation building
in the most positive sense? Cinema also can be a great vehicle to preserve national memory. This memory
can in turn be projected into the future for generations yet to come. It can build a bridge between past and
future, old and new. It can bridge the divide between the lower strata of society and the upper strata, between
communities and religions. It can serve as a channel for dialogue and greater understanding. It can bring out
the inner beauty and truth of the country. But there is at the same time a danger of idealising and over-using
this medium to the extent that it loses its impact and credibility. For example, you can make a beautiful
viewcard to promote national tourism, but this viewcard will be totally lacking in credibility if it is not
authentic and close to reality. It is important not to fall into the trap of making crude attempts at
beautification, because it can be counterproductive. Film should rather provide a critical insight and
appreciation of our own society through which credible beauty can be born.
Satyajit Ray’s Pather Panchali is a good example of the positive role that authentic
cinema can play in a nation’s history. When Ray’s film got an award at Cannes in the
mid-1950’s, some of the big Bollywood stars dismissed this masterpiece as earning
prestige at the expense of a negative portrayal of India as a poor country. But how
short-sighted they were! And fortunately how unrealistic their concerns also were!
Pather Panchali not only earned India prestige and honour in 1955, but it is
continuing, over half a century later, to earn appreciation of the country and
contributing to its positive image. It is also continuing to bring revenue from all over
the world, as it is being screened and seen almost every month in some part of the
world. After Pather Panchali got an award at Cannes, it did not run well theatrically,
even in its home town Kolkata. In terms of immediate returns, it could be considered
commercially unsuccessful. The most commercially successful film of that same year
possibly ran for months in many halls, but in the long term this film was not more
25

26. commercially successful than Pather Panchali. Rather, it was Pather Panchali that
continued to be shown over the years, and eventually brought more money, as well as
honour, to the nation. Sometimes apparently non-commercial “art” films can be more
commercial than so-called commercial cinema. Since Pather Panchali was completed
with funds received from the West Bengal government in exchange for the ownership
rights, it was eventually the government that was able to appropriate not only the
prestige but the profit of this great film.
In the 21st century, when globalization is threatening to eclipse all local identities
and penetrating into even the remotest regions of the planet, it is more important than
ever that we project our own image of the nation. This should be an image dictated on
our own terms, rooted in our own soil, giving a more complex and in-depth impression
unlike the oversimplified and black and white portrayals seen in the global mass media.
The difficult part is that we cannot counter these over-simplified portrayals by
projecting an equally simplified version of our own in reaction. You must fight lies and
deception with truth and honesty. But we too often are more concerned, even in our
own personal life, with what other people think of us. What we think of our own selves
is more important. Cinema should be used to reassert and reinforce our sense of self-
respect. Therefore, while we think that we are suffering from a negative image
projected from outside, possibly we are ignoring the fact that we suffer most from our
own negative self-image. We have to overcome this problem, and remind ourselves of
the inner beauty and strength of our people. The major problem lies with the urban
middle class intelligentsia, who need to be reminded of the wisdom and beauty that
lies at the heart of our indigenous rural culture. But it is also this same class that
carries the burden of having to transmit the image of ourselves to the outside world.
An example of the way in which cinema can be used effectively to reverse a negative
stereotype of national image is that of Iran. In Iran, the government is actively
supporting the production and distribution of high quality Iranian films, which are
shown and appreciated at film festivals and in cinema halls across the globe. Many of
26

27. these films are critical of contemporary socio-political conditions in Iran, but they are
still promoted because they give a more complex and credible picture of the country.
By promoting these films, the Iranian government has won appreciation for its
liberalism. At the same time, Iranian cinema has proven to be the most powerful and
effective means of countering the negative image of Iran prevailing in the West. The
filmmakers themselves, with the full cooperation of the State, have risen to this
challenge and have projected to the world a different image of the beauty of Iranian
people and their culture.
In our own modest way, from Muktir Gaan to Matir Moina, we have also tried to
contribute to the projection of a more positive image of Bangladesh. We have tried to
hold up a mirror before the society to remind the people of Bangladesh of their
strengths, the richness of their traditions and the resilience of their culture. At the
same time, when these films are shown outside the country, they create a completely
new and fresh perception of our country that breaks the typical stereotypes. Now more
than ever, we need to use the powerful but neglected medium of cinema to create a
new image of our country into the 21st century. Tareque Masud is a film-maker.
Director
The director has the final responsibility for the creative aspects of the film. The producer hires the
Director of the film. Sometimes the director also functions as producer.
Synopsis, Draft
27

28. A synopsis is a summary of the contents of the film. It is a kind of sketch: a paper that reveals the
contents and form of the film or program. The reader can also get an idea of the film's approach and
style. Usually the synopsis is followed by a treatment.
First of all, the purpose of the synopsis is to sum up the series of events, the story. The synopsis of a
drama is a summary of the function of the film. Further, the synopsis can tell about the characters and
the crucial conflict.
The synopsis does not present visual or otherwise detailed solutions. They would only restrict the
following writing process. A synopsis is important to the financier, the producer, the actual work
group and the scriptwriter himself.
A synopsis is a good phase in screenwriting, since the entity is not yet covered up with details. The
crucial idea, the fundamental conflict and the structure can be clearly identified.
Treatment
Intermediate between synopsis (or draft) and screenplay, a rather large summary. Treatment includes
the structure and plot of the film, even though it is not yet broken down into scenes.
The treatment should show the beginning, the middle and the end of the film, as well as the main
turning points
Structure
28

29. A film has to have a beginning, middle and the end. This basic structure can be identified by many
conceptual tools. It is very common to divide a film into three acts. This division comes from the
theater and in its foundation one can see the structure of three-act or five-act play.
Plot
The plot tells the story of the film. The same story can be told through many different plots. The plot is
action, a series of events, taking us from the beginning of the film through the middle to the end.
The scriptwriter must keep the plot in his mind all along. Each sentence should forward the plot. It is
recommended to grasp the plot as soon as possible, already at the start-up sequence. You can scatter
descriptions of the setting and go deeper into the characters along the way.
The plot should not be too easily guessed. The viewer is pleased when the film presents a surprise.
One limiting factor is worth remembering: the inner logic of the story, created by genre, setting and
characters. The events cannot turn into something not fitting to the inner logic of the film.
Scene
From the viewpoints of scriptwriting, directing and producing, a scene is a unit of film narration, as
are shot, take and sequence. A scene is an active entity happening in one setting, dealing with one
event of the script, and having a beginning, middle and the end. Cf. Act.
In a fiction film division into scenes is based on production grounds. According to writer a scene
changes when there is a jump in time or when the location changes. Yet there can be small jumps in
time
within the scene. Practically, a scene is a continuous part of a film, with:
29

30. • the same location, same setting
• the same actors
• the same time of day (lighting)
• the same continuity in the situation
Thus a scene changes into another, when
• the location changes
• the setting changes
• the time of day changes (lighting changes)
• the continuity changes
For the documentary film and the experimental film "scene" is a more wavering concept, and there are
various opinions as to its exact contents. A scene is, however, always a part of a larger sequence, i. e. a
sequence consists of several scenes that fit together functionally. A scene can also mean a series of
shots or even an individual position of a camera. Thus a scene is a series of shots (or a single shot).
Storyboard
Storyboard is a visual or written account of what kind of visual images will be used in the film. The
written form usually includes the ratio, characters in the shot, duration of the shot and a brief account
of what is happening in the shot. In the visual form, or in storyboard, the shots of the film are
presented in a cartoon-like manner so that even the movement happening in the shot is somehow
visualized.
30

31. A storyboard artist is an artist, whose job is to make the storyboard according to the directions from
the script and the director/producer.
Storyboard is based on the screenplay and its basic idea is that already before the shooting the main
lines of the film are planned, the details that will be brought up are decided, and the duration of each
sequence is estimated
CONTENT OF FILMS
Indian producers and directors are increasingly spending more time on the development phase of the
film and have started toying with experimental ideas. The film makers have also started paying attention to
the packaging of the film, which goes a long way in improving the final product.
Some of the changes that the Indian film industry has witnessed recently include shooting in long
schedules for a sense of uniformity and timely and efficient completion ( Lagaan, Dil Chahta Hai), use of
technology through better cameras and synchronous sound ( Lagaan, Dil Chahta Hai), focus on packaging and
marketing ( Kabhi Khushi Kabi Gham, Mujhe Kuch Kehna Hai, Gadar, Ek Prem Katha, Kasoor, Style,
Ajnabee, Pyaar Tune Kya Kiya), production
of small budget niche films ( Bollywood Calling, Monsoon Wedding, Tum Bin) and
experimentation of characters and novel story lines ( Zubeidaa, Dil Chahta Hai, Asoka, Lagaan, Aks, Chandni
Bar and Astitva).
31

32. Indian cinema has also arrived on the global stage with “Lagaan” securing an Oscar nomination,
“Monsoon Wedding” winning the Golden Lion at Venice and Ismail Merchant honoured by the Bafta
Academy.
EXTERNAL ENVIRONMENT OF FILM INDUSTRY
(I) POLITICAL ENVIRONMENT
SUPPORT AND PROMOTION BY DIFFERENT GOVERNMENT BODIES
 Films Division
The Ministry of Information and Broadcasting over the last 47 years through an exclusive Films
Division, set up in 1948, has been securing the active participation of the public in nation building activities,
through the medium of film. The largest agency dedicated to the production, and distribution of
documentaries and news agencies, the Films Division produces news magazines from its headquarters at
Mumbai, films on agriculture, defence and family welfare from Delhi and featurettes from its regional centres
at Calcutta and Bangalore. The Division caters to more than 12,911 cinema theatres allover India and to non -
theatrical circuits like units of the Directorate of Field Publicity, mobile units of the State Governments,
Doordarshan, field units of the Department of Family Welfare, educational institutions and voluntary
organisations. The Division's films are also screened abroad through the Indian embassies, television
networks, Government departments, educational, cultural, and social organisations as well. The Division aims
to foster the growth of the documentary film movement - which is essential to the realms of information,
communication and integration.
The Division has been given the responsibility of organising the Mumbai International Film Festival
for Documentary, Short and Animation films, which is a biennial event.
32

33.  National Film Development Corporation Limited
The National Film Development Corporation Limited set up on 11 April, 1980 aims at bringing an
overall improvement in the quality of Indian cinema and also increasing its access. As films constitute a vital
segment of audio - visual culture, NFDC covers a large gamut of activities - production of films, export of
Indian films, import of foreign films, import and distribution of raw stock, construction of cinema theatres and
development of technology. The Corporation promotes the concept of low - budget yet high quality films,
which is a possible solution to the financial problems faced by the film - makers of the country. The
Corporation imports about 20 to 30 films annually for theatrical release. India exports films to over 100
countries. It participates in various international film markets to promote Indian cinema and also plays host to
a number of buyers from various countries. NFDC's main objective is to expose the Indian audience to a
plethora of fine films from various countries, however due to limited resources the emphasis is on good
quality family entertainers.
To fight video piracy, NFDC, in collaboration with the Indian film industry has set up an anti - piracy
body, Indian Federation Against Copyright Theft (INFACT), which is registered as a company under the
Companies Act. The Theatre Financing Scheme was launched by NFDC to ensure the creation of additional
seating capacity in India and to provide outlets for fine cinema.
 Directorate of Film Festivals
The Directorate of Film Festivals was set up in 1973, under the Ministry of Information and
Broadcasting, to help promote Indian films of aesthetic and technical excellence, both within India and
abroad. Since then, the Directorate has supplied a platform for the best in Indian cinema by holding the
National Film Festival every year. The Directorate has been successfully promoting Indian cinema abroad and
also given a chance for Indians to appreciate some of the finest works of international cinema. Within the
country, it has made the newest trends in international cinema accessible to the general public.
The Directorate was brought under the NFDC in July 1981, and in July 1988, it was again transferred
to the Ministry of Information and Broadcasting.
33

34.  National Film Awards
The National Awards for films, known as state awards till 1966, were set up in 1953, for promoting
the country's film art by acknowledging the outstanding achievements in various fields of film - making.
The Dadasaheb Phalke Award is decided by the Government of India, and the entries for the National
Awards are judged by two national juries, one for the feature films and the other for short films.
 National Film Archive of India
The National Film Archive of India ( NFAI ) was established in February 1964, as a media unit of the
Ministry of Information and Broadcasting. Its objective is to acquire, preserve and restore the rich heritage of
national cinema, and the cream of international cinema. The archive has made significant progress in the
preservation of films, audio and video material, documentation, research and dissemination of film culture in
India.
The archive functions as the main repository for Indian and foreign research workers for viewing film
classics, relating to their research projects.
 National Centre of Films for Children and Young People
The National Centre of Films for Children and Young People ( N'CYP ), earlier known as Children's
Film Society, was established in 1955, as an autonomous unit with an aim to provide children value - based
entertainment through the medium of films, and is engaged in production, acquisition, distribution and
exhibition of children's films. N'CYP conducts ' International Film Festivals for Children and Young People'
every two years. The Centre produces feature films, television serials, short featurettes and short animation
films for children and young people. It also purchases the rights of foreign films and presents them in the
34

35. country after dubbing in Indian languages. The films produced by N'CYP are entered in several National and
International Film Festivals and have won many awards.
 Film and Television Institute of India
The Film and Television Institute of India ( FTII ) located at Pune, imparts technical training in the art
of film - making and also gives in - service training to the personnel of Doordarshan. The FTII conducts 3 -
year specialisation courses in motion picture photography, cinematography, film direction, sound recording
and sound engineering with one - year integrated training.
The TV wing of the Institute primarily caters to the training requirements of various production and
technical staff of Doordarshan. Television training is given in TV programme production, studio technical
operations, TV films and TV graphics and design. The Institute regularly sends its students' films in national
and international film festivals, in order to give exposure to students' work, not only on the national, but the
international level.
 Federation of Film Societies of India
The Federation of Film Societies, an apex body of the film societies in India, is provided grants - in -
aid by the Ministry of Information and Broadcasting to spread film awareness and development of audience
taste in the realm of cinema. These Film Societies aim at nurturing and developing film culture in the country.
www.meadev.nic.in/media/films.htm
FDI POLICY
100% foreign direct investment (“FDI”) is permitted in the film sector.
35

36. (II) ECONOMIC ENVIRONMENT
 Purchasing Power Parity (PPP) in India has increased from $300 in 1992 to $ 1600 in 1997
and from $ 1600 to $ 2660 in 2002-03. So today people have more money to spend on entertainment which
leads to increase in turnover of the industy. http://www.theodora.com/wfb/
 Interest rate: As there is a fall in interest rate in last several years, film producers get funds at
low rate. This encourages people to venture into the business of film production.
(III) SOCIO-CULTURE ENVIRONMENT
Bollywood is perceived to be ‘The Place where Dreams come true’. Every Indian would wish to be
like, look like, see like or talk like a particular actor/ actress from this magic world. Imagine the level of
etching this industry has on the hearts and minds of people.
The Indian film industry has moulded itself very perfectly with the ongoing traditions, values, beliefs
and lifestyle. A flashback into the history of the country and its people would reveal the impact it had on the
industry.
Just after India broke from the shackles of dependency, patriotism was deep down there in the hearts
of the people. To serve the country better, there were thinkers and actors like Manoj Kumar who had come
with films like Kranti, Roti Kapda Makan, Purab Paschim, etc.
Next came in the phase of action and drama where our very own Mr. Amitabh Bachan was aptly called
the Angry Young Man. He worked in the movies like Zanjeer, Sholay, Deewar , etc.
The present era inspired by westernisation with more broader mindsets and a complete shift in
paradigm has resulted in movies like Dil Chahta Hai, Murder, Julie, etc.
From hairstyles to costumes, from beliefs to lifestyle, from house concepts to the toy in the hands of a
kid, every thing which is seen in the daily cores is reflected on the Silver Screen.
36

37. (IV) LEGAL ENVIRONMENT
THE FILM INDUSTRY AND COPYRIGHT LAWS
The Threat
The film industry in India today is facing its biggest threat, that of piracy. This includes, cable piracy,
VCR piracy and its new avatars, VCD piracy. The development of these new forms (VCDs and now DVDs)
are a double edged sword. Whereas, on the one hand they provide for additional sources for commercial
exploitation of the film, on the other hand, the ease with which they can be copied, reproduced and
disseminated to the public, is giving the film industry nightmares. Films appear on cable without any authority
whatsoever, almost as soon as they are released in the theatres, sometimes even prior to their theatrical
release. Overseas rights of Indian films are sold almost simultaneously along with the release in India.
Copyright Laws in India
With the advancement of technology, Copyright laws in India have also been changing to keep pace
with the times. The Copyright Act, 1957 was enacted and came into force on the 21st
of January 1958. In its
Objects and Reasons the legislature recognized that "new and advanced means of communications like
broadcasting, litho-photography, etc." call for certain amendments in the existing laws (Copyright Act, 1911).
The legislature also commented that "adequate provisions have to be made for fulfillment of international
obligations in the field of copyright which India must accept". It is in this year (1957) that cinematograph
films derived separate copyrights apart from its various components, namely, story, music etc.
The laws have thereafter been subjected to certain changes. It was Amending Act 65 of 1984 which
specifically addressed the issue of piracy. The Statement of Objects and Reasons to the amendment
acknowledged piracy as a "global problem due to the rapid advances in technology". Besides addressing the
loss in the form of royalties to the legitimate copyright owners, the legislature also realized the losses to the
37

38. exchequer by way of tax evasion. Certain relevant portions from the Object and Reasons for the amendment
are reproduced below :
"….recorded music and video cassettes of films and TV programmes are reproduced, distributed and sold on a
massive scale in many parts of the world without any remuneration to the authors, artistes, publishers and
producers concerned. The emergence of new techniques of recordings, fixation and reproduction of audio
programmes, combined with the advent of video technology have greatly helped the pirates. It is estimated
that the losses to the film producers and other owners of copyright amount to several crores of rupees. The
loss to Government in terms of tax evasion also amounts to crores of rupees. In addition, because of the recent
video boom in the country, there are reports that uncertified video films are being exhibited on a large scale. A
large number of video parlours have also sprung up all over the country and they exhibit such films recorded
on video tapes by charging admission fees from their clients. In view of these circumstances, it is proposed to
amend the Copyright Act, 1957, suitably to combat effectively the piracy that is prevalent in the country"
In its effort to address the above issues, by way of the amendments, the following changes were incorporated
in the Act, namely: -
i. The punishment provided for the infringement of the copyright was enhanced to a maximum of three years,
with a minimum punishment of imprisonment of six months, and a fine upto to Rs. 2 lakhs, with a minimum
of Rs. 50,000/-.; An enhanced punishment in the case of second and subsequent convictions was also provided
for;
ii. The provisions of the Act were now specifically made applicable to video films and compute programes;
iii. The producers of records and video films were now under a statutory obligation to display certain
information in the records, video films and containers thereof, which included the name of the copyright
owner, year of first publication etc.
India's new copyright law, passed in June 1994, became effective on May 10, 1995 and
establishes an entirely new potential for reducing piracy in India. According to the Statement of Object and
Reasons, the legislature recognized that "effective copyright protection promotes and rewards human
creativity and is, in modern society, an indispensable support for intellectual, cultural and economic activity.
The legislature further recognized that copyright law promotes the creation of literary, artistic, dramatic and
38

39. musical works, cinematograph films and sound recordings by providing certain exclusive rights to their
authors and creators. It was felt that the present Act needs revamping on the following grounds:
• to extend more effective protection to owners of copyright and related rights in the context of technological
developments affecting the reproduction of words by, inter alia, bringing within the scope of copyright the
subsequent hire or sale of copies of cinematograph films, computer programmes and sound recordings.
• to further clarify the law in respect of cable, satellite and other means of simultaneous communication of
works to more than one household or private place of residence, including the residential rooms of a hotel or a
hostel.
• to make provisions for licenses whereby the reproduction of works by reprographic equipment or by means of
devices such as tape recorders and video cassette recorders, where such reproduction would not under the
existing law be infringement of copyright, shall be subject to payment or remuneration to copyright owners by
means of a levy on such equipment.
The law protects cinematograph films as a distinct work, giving the producer of the film the exclusive rights
i. to make a copy of the film, including a photograph of any image forming part thereof;
ii. to sell or give on hire, or offer for sale or hire, any copy of the film regardless of whether such copy has been
sold or given on hire on earlier occasions;
iii. to communicate the film to the public
India, being a member of two of the major copyright conventions of the world (The Berne Convention
and The Universal Copyright Convention), Indian works and works of Indian authors are accorded copyright
protection in all major countries of the world. Likewise, foreign works and works of foreign authors are
accorded the same protection as Indian works.
39

40. In addition to the law bringing India newly into compliance with its substantive TRIPS obligations in
the copyright area, the law provides for new minimum criminal penalties including a mandatory minimum jail
term which, if implemented, will go far to controlling piracy.
The government has initiated some measures for better enforcement of copyright laws. A summary of some of
these measures is given below :
• The Department of Education, Ministry of Human resource Development, Government of India has
constituted a Copyright Enforcement Advisory Council (CEAC). The CEAC is reconstituted from time to
time to review periodically the progress of enforcement of the Copyright Act and to advise the government on
measures for improving the enforcement.
• Creation of separate cells in state police headquarters. Special cells for copyright enforcement have so far
been set up in the following 23 States and Union Territories: These are the States / Union Territories of
Andhra Pradesh, Assam, A &N Islands, Chandigarh, Dadra & Nagar Haveli, Daman & Due, Delhi, Goa,
Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Meghalaya,
Orissa, Pondicherry, Punjab, Sikkim, Tamil Nadu, Tripura and West Bengal. States have also been advised to
designate a nodal officer for copyright enforcement to facilitate easy interaction by copyright industry
organizations and copyright owners.
• Encouraging setting up of collective administration societies and organization of seminars and workshops to
create greater awareness about copyright law among the enforcement personnel and the general public. For
collective administration of copyright, copyright societies are set up for different classes of works. At present
there are three registered copyright societies. These are the Society for Copyright Regulations of Indian
Producers of Films & Television (SCRIPT) for cinematographic films, Indian Performing Rights Society
Limited (IPRS) for musical works and Phonographic Performance Limited (PPL) for sound recordings.
There is now an urgent need for all the constituent parts, i.e. the rights owners, the government, the
enforcement agencies and the judiciary, to work jointly in eradicating the menace of piracy.
www.filmpiracy.com/artic.html#a
FILM CERTIFICATION
40

41. All films meant for public exhibition, irrespective of their length, whether in celluloid or video or CD
or DVD version are subjected to censorship. Programmes produced exclusively for broadcasting through the
Television are excluded.
"Film censorship becomes necessary because a film motivates thought and action and assures a high degree
of attention and retention as compared to the printed word. The combination of act and speech, sight and
sound in semi darkness of the theatre with elimination of all distracting ideas will have a strong impact on the
minds of the viewers and can affect emotions. Therefore, it has as much potential for evil as it has for good
and has an equal potential to instill or cultivate violent or good behaviour. It cannot be equated with other
modes of communication. Censorship by prior restraint is, therefore, not only desirable but also necessary"
SUPREME COURT OF INDIA
 Film Censorship In India
The Cinematograph Act 1952, apart from including provisions relating to constitution and functioning
of the Central Board of Film Certification (then called the Central Board of Film Censors), also lays down the
guidelines to be followed for certifying films. Initially, there were only two categories of certificates "U"
(Universal exhibition) and "A" (restricted to adult audiences), but two other categories were added in June
1983 "UA" for unrestricted public exhibition subject to parental guidance for children below the age of twelve
and "S" films for public exhibition restricted to specialized audiences such as doctors. The 1952 Act has been
amended to bring it up-to-date, and the last amendments were in 1981 and 1984. The present censorship of
films is governed by the 1952 Act, the Cinematograph (Certification) Rules promulgates in 1983 and the
guidelines issued from time to time, The guidelines are issued under section 5(B) of the Act.
 Legislation
The censorship of films is governed by the The Cinematograph Act,1952, the Cinematograph
(Certification) Rules promulgated in 1983 and the guidelines issued on December 6, 1991. The guidelines are
41

42. issued under Section 5B of the Act. This section says that ' a film shall not be certified for public exhibition,
if, in the opinion of the authority competent to grant the certificate, the film or any part of it is against the
interests of the sovereignty and integrity of India, the security of the States, friendly relations with foreign
States, public order, decency or morality or involves defamation or contempt of court or is likely to incite the
commission of any offence.
 Enforcement
a. Introduction
1. The Central Board of Film Certification is responsible mainly for certifying films. The
enforcement of the penal provisions of the Cinematograph Act, 1952 is with the State Governments /Union
Territory Administrations, since exhibition of films is a State subject...
2. The CBFC does not have any enforcement agency or manpower directly under its control. It has
to depend on the local police force for enforcement of laws.
3. There are various forms of violations which often go unchecked because there are no checks and
no complaints from either the law enforcement agencies or members of the public.
b. Violations of Cinematograph act
The following are the major violations that agitate the minds of the public:
(a) exhibition of an 'A' certified film to a non-adult
(b) exhibition of an 'S' certified film to persons other than those for whom it is meant;
42

43. (c) exhibition of a film in a form other than the one in which it was certified. Such violations are known as
interpolations. Interpolations can be described as follows:
(i) re-insertion in prints of a film for exhibition those portions which were deleted by the Board before
certification of the film
(ii) insertion in prints of a film, portions which were never shown to the Board for certification;
(iii) exhibition of 'bits' unconnected with the certified film.
(d) exhibition of a film which was refused a certificate (or 'banned' in common parlance)
(e) exhibition of uncensored films with forged certificates of other films.
(f) exhibition of films without censor certificates.
C. Penalties
1. Offences with regard to violations of censorship provisions are Cognizable. Furthermore, they
are non-bailable.
2. Section 7 of the Cinematograph Act provides penalties for violation of censorship provisions.
Penalty can also be imposed for failure to comply with section 6A which requires that any person delivering a
film to an exhibitor or a distributor will also give to him details of all cuts, certification, title, length and
conditions of certification.
3. A person guilty of violation while exhibiting celluloid films is punishable with imprisonment
for a term which may extend to Three years, or with fine which may extend to Rs.1/-lakh, or with both, and
with a further fine up to Rs.20,000 for each day for a continuing offence. Similarly, Showing of video films
which violate the rules in the manner prescribed in this section will attract imprisonment of not less than three
months but which may extend to three years and a fine of not less than Rs.20,000 but which may extend to
Rs.1/-lakh and a further fine up to Rs.20,000 for each day for a continuing offence.
4. Furthermore, the trial court can direct that the offending film be forfeited to the Government.
Under Section 7A, any police officer can enter a hall where an offending film is being screened, search the
43

44. premises and seize the print. Films can also be seized when they are likely to be exhibited in violation of
Cinematograph Act.
 Film Censorship.
In keeping with this responsibility, the Central Board of Film Certification known till June 1, 1983 as
the Central Board of Film Censors) was set up in Mumbai, with regional offices in some other cities (at
present there are nine such offices in Mumbai, Calcutta, Chennai, Bangalore, Hyderabad,
Thiruvananthapuram, New Delhi, Cuttack, and Guwahati). A Film Certification Appellate Tribunal (FCAT)
has also been constituted under section 5D of the 1952 Act for hearing appeals against any order of the CBFC.
While the work of certification of films is a central subject, the states have to enforce these censorship
provisions and bring any violations to the notice of the CBFC. The organizational structure of the CBFC is
based on the provisions of the 1952 Act and the Cinematograph (Certification) Rules 1983. The Chairman and
members are appointed for a term of three years or till such time as the Government may direct. They
comprise eminent persons from different walks of life such as social sciences, law, education, art, film and so
on, thus representing a cross-section of society.The CBFC is assisted by the Advisory Panel in various
regional offices which are headed by Regional Officers. The members of these panels are also representative
of cross-section of society and interests. These members hold office till such time as the Government may
direct but not exceeding two years. However, the members can be re-appointed. The CBFC has divided itself
into Examining and Revising Committees to provide a two-tier system for certification of films in the event of
the applicant or the Chairman himself not being satisfied with the decision of the Examining Committee. The
certification rules also apply to foreign films imported into India, dubbed films, and video films. In the case of
dubbed films, the Board does not have any fresh censorship for the visuals in general cases. The Certification
44

45. does not apply to films made specifically for Doordarshan, since Doordarshan has its own system of
examining such films.
 The Process of Certification
- Examination
1. The Cinematograph (Certification) Rules, 1983 have laid down the procedure that a producer
must go through to get his celluloid, video, CD or DVD film certified.
2. The film, document specified in rule21, censor fee and cess fee have to be submitted to the
regional officer of the concerned regional centre. The regional officer will form an Examining Committee to
view the film. This Examining Committee, in the case of a short film, will consist of an officer of the CBFC
and one member of advisory panel either of whom shall be a woman, and in the case of a long film/feature
film, one officer of the CBFC and four members of the advisory panel of whom two persons shall be women.
After the film has been previewed, a report indicating the recommendations of EC along with the category of
certificate recommended and deletions / modifications as deemed necessary is prepared and given to the
Chairman of CBFC who may approve the decision of the examination committee and ask the regional officer
to initiate further actions necessary to issue the certificate.
-Appeal
3. However, if the Chairman, on his own motion or on the request of the applicant, so feels, he may refer the
film to a Revising Committee. The Revising Committee will consist of the Chairman, in his absence, a Board
member, and not more than nine members, drawn either from the Board or the advisory panel, provided none
of them was on the Examining Committee. The Revising Committee will view the same film print shown to
the Examining Committee without any changes, and each member will be required to record his verdict before
leaving the theatre. If the Chairman is not in agreement with the majority view, he may direct another
Revising Committee to see the film.
45

46. 4. After the applicant is apprised of the decision of the Board, he will delete or modify any portions (if so
directed) and submit them to the regional officer along with one copy of the film (in video cassette format) as
certified.
5. Before any order prejudicially affecting the applicant of a film is passed by the Board, he is given an
opportunity to represent his views in the matter.
-Appeal in Tribunal
6. An applicant aggrieved by the order of the Board can go on appeal to Film Certification Appellate Tribunal.
7. If the matter goes in appeal to the Film Certification Appellate Tribunal which is headed by a retired judge as
Chairperson and not more than four other members, the FCAT may view the film and hear both the applicant
and the CBFC before coming to its judgement.
8. Certificate is finally issued by the concerned Regional Officer on behalf of the Board.
46

47. AN OVERVIEW OF FILMS CERTIFIED
(From 1.1.2003 to 31.12.2003)
U UA A S TOTAL
INDIAN FEATURE FILMS 479 198 200 - 877
FOREIGN FEATURE FILMS 34 67 181 - 282
INDIAN SHORT FILMS 1056 64 57 - 1177
FOREIGN SHORT FILMS 47 109 72 - 228
INDIAN LONG FILMS OTHER
THAN FEATURE
- - - - -
FOREIGN LONG FILMS OTHER
THAN FEATURE
- - - - -
TOTAL 1616 438 510 - 2564
(Source: Central Board of Film Certification)
ENTERTAINMENT TAX
 Films are a huge source of government receipts on account of the high rate of
entertainment tax which stands at an average of 25 per cent for the country as a whole. In fact, in Maharashtra,
it is as high as 60 per cent. Gujarat has an incidence of 100 per cent, while Madhya Pradesh has a tax rate of
75 percent. Andhra Pradesh has low tax rate of only12 percent.
 Texemption for export earnings raised abroad according to Section 80HHF is 20%.
 Tax benefits to multiplex construction companies :
50% of the profits and gains derived from the business of building, owning and operating multiplex theatres
are allowed as a tax deduction. In order to avail of this deduction, the theatre must have been constructed
during the period between April 1, 2002 and March 31, 2005 and must not be situated in Mumbai, Kolkatta,
Chennai and Delhi. The deduction is available for five (5) consecutive assessment years beginning from the
first assessment year.
(Section 80IB(7A) of the Income-tax Act, 1961). www.incometaxindia.gov.in
47

48. (V) TECHNOLOGY ENVIRONMENT
The Indian film industry is increasingly adopting digital technology in its processes. The cameras that
are being used in India are the same as those used in Hollywood today. Digital breakthroughs and digital
creation of scenes is increasingly becoming part of Indian cinema. There is marked improvement on the
technical side such as dolby sound, computerized editing, special effects etc. It is expected that digital
technology will bring a sea change in the film production.
Areas which need to be addressed are in the Digital Space are:
- Animation: Currently the global outsourcing in the animation space is being done in the Philippines, Taiwan
and Korea. There are more than 50,000 animation specialists working in this space. In India, there are just
four major studios and about 2,000 to 3,000 professionals are available. The scope for providing training in
Animation and creating opportunities for outsourcing from India is untapped and huge. Individuals with basic
drawing and visualization skills can be easily trained in animation.
- Special Effects: It requires very high capital investments. Large IT players have the opportunity to enter this
space and can also provide high-end consultancy.
- Digital Cinema: Infrastructure
FICCI has tied with NASSCOM which can be called as “ e-Entertainment Alliance”.
This Alliance will establish:
1. A forum to create ‘Human Capital’ from India in the creative and performing arts and related technologies,
provide young and budding entrepreneurs opportunities to compete globally in the technology space in
48

49. animation, special effects, digitization etc. and produce winners in the International arena. Training Programs
and workshops are to be organized for both IT as well as entertainment techies.
2. Every possible form of media will be covered in the e-entertainment space be it print, radio, TV,
electronic/internet based, films, sports, … … the opportunity lies in developing the abilities to digitize the
contents.
3. There is a need to Create an ‘Advanced Institute for Digital Arts ‘ (AIDA) in Mumbai.
4. The source of funding in the Hollywood film industry generally comes from Germany through the
“Completion guarantors” and not through the Venture Capital Funds at this point of time. Hence eE@ needs
to research and develop alternate sources of funding.
5. Better interaction with International Bodies like Motion Pictures Association, USA etc.
6. Leveraging the TiE network in bridging the gap between Hollywood & Bollywood and getting marketing
support from the Indian Community abroad.
7. Working closely with the Investor community in India and abroad.
8. Lobbying with the Govt. in technology related issues benefiting the entertainment industry.
PRODUCT
Have you ever had a hand in developing a product that was engineered for efficiency. Tested for performance.
Packaged for shipping. And had it sit on the shelf?
Today’s marketing ‘tude is about design as much as it is about product life cycle. A marketing attitude of
connecting people with people through a product and/or service is at the heart of every decision and process in
business. An attitude of identifying the audience/customers. An attitude of giving them more bang for their
49

50. buck. An attitude of getting their attention in a world of media clutter. An attitude of building value for your
company through smart business negotiations. All those choices and skills are elements of marketing.
A movie product consists of intellectual property than can be ported to a variety of deliverables: theatrical
exhibit, non-theatrical exhibit, video tapes, DVDs, CDs of the soundtrack, collectible editions, television and
cable broadcast, Internet-served, and then there is the split dimensions of domestic, foreign, and niche
markets. Not to mention ancillary products such as clothing, toys, games, posters and even restaurants for
successful franchises. Oh…and then there’s the franchise rights, endorsements, product placements…and a
host of offshoots that are bought and sold, leased and rented.
The digital cinema product is also a service. It’s a product that can be a valued collectible or a gift. It’s also
entertainment opportunities in a theater or in someone’s home. The movie biz is one of the most complex in
the communications industry because of its creativity, its diversity and its continual explosions of
technological delivery options.
Production value is a nice global term in product marketing of movies. Included in this catch-all basket are:
• Strength of the story
• Star power – promotional quality of actor, director and maybe, director of photography
• Visual quality
• Sound and Music quality
• Deliverability: quality, on-budget, on-time and marketing materials
Marketing and Distribution Services
Based on the Test Marketing analysis, a plan is made looking at the sets of audiences whom the film appeals
the most, & accordingly marketing budgets are allocated & publicity campaign is planned and launched, e.g.
according to test data, the film is intended to appeal to Hindi-speaking, college-going groups, then marketing
& publicity campaigns are focused on such segments. The objective is to target the right audience & to derive
maximum mileage from promoting & exploiting the product.
50

51. Methodology
The plan also aims at advising how many prints have to be put in the market at the time of release of the film.
Estimates are given for allocating these prints, circuit-wise.
Further, plans can be drafted for exploitation of any language film simultaneously with the release of the film
in following languages:
• English
• Tamil
• Kannada
• Malayalam
• Telugu
• Sinhalese for Srilanka
• Bengali for Western India & Bangladesh
Out of the total number of prints, one can have at least 50% prints dubbed in the above languages, which
ensures very high reach and acceptability.
The plan also covers cost estimates to various media with publicity budgets. Budgets are separately made for
TV & cable publicity, Newspaper publicity, direct promotions, Outdoors publicity, etc.
Based on the above, hype is created in the market & a well-established distributor line up is ensured for
acquiring rights. In this bargain the rights holder gets better value for the product & sells on his terms.
Pricing & Distribution review is based for each major circuits & appox minimum + maximum pricing
estimate. Further estimates shall be provided on sale of different rights (audio + theatrical + home video +
cable) in the neighboring countries like Pakistan, Srilanka, Bangladesh & estimates for such rights in Indian
territories.
Advantages:
• Ensure that during the first 3-4 weeks, film is highly successful.
• Create a cascading effect & get a better turnout at theatres.
• Film is launched with right marketing appeal.
• Getting better value of product.
51

52. • Planning and implementing an expertly-drafted Promotion & Advertising plan can result in unexpected
profits, as in the case of Ek Chhotisi Love Story.
• Intrinsic returns will increase with more yield on other rights such as satellite, television, etc.
Marketing a film
· What films have you seen recently? What made you want to go and see
them?
Make a list of all the factors that influenced you and put them in order of
priority.
· Make a list of all the different ways in which you might hear about a film. Put
these in order as to which give you the most information. Now re-order them
to show which are the ones that make you really want to see a film. What
does this say about the way you personally make choices about your film
viewing? How does this compare with your friends?
· What cinemas are there in your local area? Are there any differences
between them? How do you find out details of what films are showing and
when? Visit the websites for several cinemas. How do the websites reflect the
different nature of the organisations?
FILM MARKETING STRATEGY
Via the implementation of a professional dedicated production team, the film story line will focus on a highly
targeted demography audience.
Successful independent films made by first and/or second-time producers are predominantly made for
“targeted audiences”. A Hispanic American “targeted film” will assured success in this
market, (please see Hispanic American market research at the end of the presentation). An independent film is
typically a small, character driven movie that plays at selected theaters in urban markets. After their run in
52

53. theaters these movies become widely available for rental or sale at video stores and are seen on national cable
networks such as Showtime or HBO. Examples of this kind of movies are:
My Family, Mi Familia, El Norte, Sugar Hill, Amore Perros, tu, Mama Tambien La, La Puta Vida, Water for
chocolate
Distributors
Companies that buy films and present them in movie theaters are called distributors. Most large distributors
have a sister company or division that deals specifically with independent films.
Fox Searchlight Twentieth Century Fox Corporation
We have already made contact with these distributors and are currently developing relationships with them for
the distribution and purchase of the “Vampira project. Our full intention is to create, produce, and ultimately
sell “Vampira” for a maximized profit. We feel, that while we love our project, ultimately, it is the exposure
and sale of the film that will generate the publicity and profit that we require to continuing making films.
Film Festivals
Known to the public as film festivals, these international movie-industry gatherings are actually open markets
and trade shows where hundreds of distributors look for new films.
Our intention is to enter our film in all the competitive festivals, simultaneously we will attend the major
markets in order to personally promote our film. These Film Festivals include:
The Sundance Film Festival
The American Film Market
The New York International Latino Film Festival
The Los Angeles Latino Film Festival and Market
53

54. The Miami Latino Film Festival
The New York Film Festival Uruguay International
Film Festival
The New Directors/New Film Series presented by the Film Society of Lincoln Center
The Film Festival of Punta del Este, (Uruguay)
As well as several South and central American Film Festivals.
We will put together an aggressive marketing plan of our product to be displayed at these venues. Vampirism
being a successful product in the film industry will guarantee a profit in the Hispanic market and the
international horror film market. We will attract attention to our film by directly approaching foreign and
domestic distributors and by winning awards. We expect our efforts to increase our chances of winning
awards and gain recognition.
ADVERTISING AND PROMOTION
The primary target market is the Hispanic American community.
The marketing communications activity will be focused on the Latino community to transact on the
“Vampira” film Hispanic will be reached through a broad based marketing channels:
Film Festivals
Trade Magazines and Print Publications
Media campaign: Radio and TV Promotion
On Line (Internet) Marketing
The primary target market is the Hispanic American community. The marketing communications activity will
be focused on the Latino community to transact on the “Vampira” film. Hispanics will be reached through a
broad based marketing channels:
Film Festivals
Trade Magazines and Print Publications
Media campaign: Radio and TV Promotion
54