UTV Motion Pictures is a leading Indian film studio owned by The Walt Disney Company. It pioneered the studio model in India and backed novel story ideas without big stars. The total Indian film market is estimated at Rs. 13,000 crores and is growing at 11.5% annually, with UTV holding around 5% market share. UTV faces competition from other major Indian studios. Key success factors include understanding the target audience, smart budgeting, and effective promotion. The document provides an overview of the Indian film industry and UTV's position within it.

1. UTV Motion Pictures
A market analysis
Submitted to Prof. Rajeev Roy
Abhishek Chatterjee
Roll No. : U112002
PGDM (BM) 2012-14

2. Table of Contents
Company Profile ............................................................................................................................. 3
Introduction ..................................................................................................................................... 4
Total Market Size of Indian Movie Industry .................................................................................. 6
Future Growth ................................................................................................................................. 7
Market Share of UTV ..................................................................................................................... 8
Competitors ..................................................................................................................................... 8
Market Profitability....................................................................................................................... 10
Industry Cost Structures ................................................................................................................ 10
Distribution Channels ................................................................................................................... 11
Market Trends ............................................................................................................................... 12
Key Success Factors ..................................................................................................................... 13
Conclusion .................................................................................................................................... 14
References ..................................................................................................................................... 14

3. Company Profile
UTV Software Communications Ltd. is an Indian media and entertainment company. It is
owned by The Walt Disney Company India Pvt. Ltd., a subsidiary of The Walt Disney
Company.
It started out as UTV Software Communications Pvt. Ltd. in 1990 as a producer of television
content and ad films for Doordarshan, before becoming public in 1995 and renaming itself as
UTV Software Communications Ltd. With the advent of Satellite television in India it started
producing content for Zee Television. After venturing into in-flight entertainment programming,
television post-production, special effects & animation, television broadcasting, it went into
movie production and distribution business under the name UTV Motion Pictures.
Although the subsidiary was launched in 1996 and the first film was produced in 1997 (“Dil Ke
Jharoke Mein”), the company actively started producing and distributing films only 2000
onwards.
In 2011, The Walt Disney Company bought out stakes held by public shareholders and other
promoters of the company in a deal valued around Rs 2,000 crore making UTV a wholly owned
subsidiary of the group.
Today, the UTV Group looks into 5 verticals namely –
Television Content
Motion Pictures
Games Content
Broadcasting
Interactive
In the following market analysis we would be focusing only on the Motion Pictures vertical in
India which contributes to over 50% of the company‟s total revenue.

4. Introduction
The UTV Group has pioneered the studio model in India. A studio model is a system where one
enters with a script, and once it is approved, everything from availing of production resources to
final sales and distribution of the movie is taken care of by the creative personnel of the
company.
They have always supported novel story ideas and backed movies without a big start cast
which led to the development of a new breed of film making in the country. Some of these films
are – „Dev D‟, „Oye Lucky Lucky Oye‟, „A Wednesday‟ and „Khosla Ka Ghosla‟. These
movies not only got critical acclaim but also did well commercially by sheer strength of content.
In 2008, a special sub-division of the company- UTV Spotboy was launched to make movies
which are low on budget and star cast, but high on content. Movies like „Aamir‟, „Welcome to
Sajjanpur‟ and „Paan Singh Tomar‟ are some of the movies produced by this sub-group. The
success of these movies led other leading production houses in the country to adopt a similar
model.
Their business spans the integrated model of creative development, production, marketing,
distribution, merchandising and syndication worldwide. UTV‟s portfolio includes Hindi Movies,
Regional Movies, Animation Films, International productions and co productions, besides an
exclusive distribution arrangement for India with The Walt Disney Company.
One of the first Indian companies to produce and distribute movies abroad, UTV has co-
production agreements with several international production houses like Overbrook
Entertainment and Sony Pictures Entertainment.
In 2008-2009, UTV Motion Pictures became the first Indian Studio to co-produce a
mainstream Hollywood movie - M. Night Shyamalan's “The Happening”. Not only this, UTV
also distributed Disney's productions – “Confessions of a Shopaholic” and “Bedtime Stories” in
India. This coupled with innovative marketing initiatives and a concentrated campaign to
leverage value across existing and new media platforms, further reinforced their stature as not
only the leading motion picture producers in India, but also the most innovative.

5. Along with production, UTV successfully distributes its movies in more than 45 countries
around the world on the same day as their theatrical release in India. UTV Motion Pictures
accomplished the feat of being among the Top 20 Distributors in North America and is the
first Indian film studio ever to have crossed the US $5 million revenue mark in the first half of a
year, thus redefining the scope of overseas distribution of Indian films.

6. Total Market Size of Indian Movie Industry
The size of the Indian film industry is estimated at Rs 13000 crores growing at a CAGR of 11.5
per cent. Out of Rs 13000 crores, the domestic box-office collections account for Rs 9877 crores
with overseas box-office, ancillary rights and home video making up the balance.
This growth is primarily attributable to the growth in average ticket prices, increasing from Rs 25
(USD 55 cents) in 2008 to Rs 40 (USD 88 cents) in 2012.
The Indian Film Industry
Domestic Box-office
Overseas Box-office
Factors leading to growth in the Industry:
1. The growth in India‟s per captia income has led to a large part of the population
willing to spend on discretionary items.
2. India produces the largest number of movies in the world. Growing International
market and their interest in India has also led to a variety of content available to
people over here.
3. Hollywood and other international players have been trying to consolidate their
position in India through joint productions. Some of the major companies in this
race are the Warner Brothers, Sony Motion Pictures and Twentieth Century Fox.
4. Improved exhibition facilities through the advent of multiplexes in the country.

7. Future Growth
The industry is growing at a CAGR of 11.5 %. Around 70% of the revenue still comes from
theatre viewership. DVD, VHS, cable, satellite and pay-per-view make up for the rest of the
revenue. The theatrical revenues continue to grow at 17 % while the satellite revenues are
growing at 22%. With improved digital technology and stringent laws to curb piracy and
additional 600 crores INR may get added to the revenue.
The estimated market size is expected to be Rs.17000 crores by the end of 2014 with Rs.12400
crores coming from domestic Box-office collections alone. The Overseas box-office is supposed
to grow up to 1450 crores INR.
One look at the growth rate of the Hindi Film Industry (Bollywood) alone over the past few
years show that such figures are well within reach.

8. Market Share of UTV
If we consider the entire Indian market then UTV would have a market share of around 5%. A
country which makes over 900 films in a year with Independent Producers still forming a large
chunk, this is an adorable market presence.
Competitors
The major competitors for the company in Hindi Film Segment are
1. Yash Raj Films
2. Dharma Productions
3. Viacom 18
4. Mukta Arts Ltd.
5. Excel Entertainment
6. Aamir Khan Productions
7. Red Chilies Entertainment
8. Tips
9. Venus
10. PVR
11. Reliance Entertainment
12. Balaji Telefilms
13. Eros Entertainment
In the regional film domain the major competitors are
1. Prasad Art Pictures
2. Padmalaya Studios
3. Geetha Arts
4. Sri Venkateswara Creations
5. Madras Talkies
6. Bharat Bala Productions

9. 7. Gemini Studios
If we look at the language wise distribution of the number of films made in India we will realize
that the regional film production houses (especially the ones in Southern part of India) are as
much a competition to them as the ones in Hindi film segment.
However, unlike its counterparts in Hindi Film industry UTV has been one of the first production
houses to realize the importance of regional film market and has already started making films in
South Indian and Marathi languages. Some of the regional films produced by UTV in the recent
past are Harishchandrachi Factory (Marathi), Vettai, Kanaamochi Yenada (both Tamil) and
Eanadu (Telugu)
UTV has also realized the importance of collaboration in creative business and continuously ties-
up with major production houses in making and distributing movies. Some of the companies it
has frequently collaborated with are Dharma Productions, Aamir Khan Productions and Excel
Entertainment.

10. Market Profitability
The total profits before tax (PBT) generated by UTV motion pictures in a single year is over Rs.
500 crores (it was Rs. 524 crores in 2010). The following profit comes through total revenue
generated through theatrical release, satellite distribution, music, home video sales, film
merchandise and internet downloads.
Industry Cost Structures
The total cost of production of a film, including its publicity cost, can vary from 5 crores to 50
crores depending on the content and star cast. UTV follows the Hollywood model of production
and reserves as much as 40% of the film budget for publicity alone.
An experimental film like „Paan Singh Tomar‟ based on the true life story of an athlete-turned-
dacoit may cost only Rs. 6 crore while a film like „Guzaarish‟ having an A-list star cast
(Hrithik Roshan and Aishwarya Rai) may cost up to Rs. 70 crore.
Usually if the content is not mass friendly, the production houses try to curtail the production
costs of the film and spend as much as possible on the publicity campaign of the film. Usually
such films turn out to be greater revenue generators than the usual run-of-the-mill stuff.
Films like „A Wednesday‟, „Dev D‟ which was produced by UTV with minimalistic budget
ended up generating over 100% profit on their budget.
While UTV distributes its own films and later on releases it on its own broadcasting network, it
is difficult to gauge how it goes about generating revenues when it comes to distribution and
satellite rights of films produced by other production houses.
Such reports are kept confidential. However it is known that a big budget film sells at 1.5 to 2
crore INR on an average in each territory as far as theatrical distribution is concerned.
Similarly the satellite rights are priced can be anything between 10 crores to 30 crores INR
depending upon the performance at the box office. The music and home video rights are sold at
a combined value of 10 crores INR on an average.

11. Distribution Channels
Once the film is made, it is bought by distributors who take it to various territories in India such
as Central India (M.P., Chattisgarh), Nizam Region (Hyderabad and areas in South india where
Hindi is prevalent), Northern Belt, Southern India etc. The distributors in turn sell it to
exhibitors (single screen and multiplex) who give them a cut in the share only when the film
generates profit for them. The revenue generated from parking of vehicles and food items are
kept by exhibitors.
The overseas theatrical distribution is usually done by the same distribution company that does it
in India. However certain movies cater to niche market. So they are distributed accordingly in
select art house theatres. Such distributors usually come on board when the film is taken to
International Film Festivals.
The film premiers on television after a considerable run at the theatres. It can be viewed on
direct-to-home television service also on a pay-per-view basis.
People with broadband connection can also watch the movies online on channels such as
Youtube who buy the rights of most of the films.

12. Market Trends
Movie making is a very unpredictable business. While the content in the 80s was primarily
towards pleasing the masses, there started a gradual change in the content towards the late 90s.
With the advent of Satellite television, the viewers were becoming increasingly aware of the
quality of movies abroad. Success of films likes „Hyderabad Blues‟ and „Satya‟ (1998) paved
the way for similar movies in times to come.
The multiplex theatres which brought along with them neat and clean viewing space, good food
service and air-conditioned movie hall, became a regular place for family outing for the urban
audience. They were willing to pay more for greater comfort and variety in content.
The success of „Dil Chahta Hai‟ (2001) started a new wave of cinema in Bollywood which
catered to urban milieu.
UTV was quick to foresee the change and backed anybody who had a different story to tell. It
knew that if they kept the budget low, the revenue generated from multiplex would help them
break even.
The results were unprecedented. These movies started giving them over 100% profit. The size of
the niche market was not limited to multiplex going audience alone, but rubbed its effect in
interiors of the country as well.
However, since the last few years, the success of mass-friendly films like „Wanted‟ and
„Bodyguard‟, most of which are remakes of South Indian films has shifted the market trend back
to the kind of films that were being made in the 80s.

13. Key Success Factors
As we saw the movie business is unpredictable and no one can judge which film might work.
However, the following factors may help in earning profits for a film:-
1. Knowing your audience well: Each film has a target audience. Hence the
distribution and marketing of film needs to be done accordingly. A Hollywood
exhibited in India needs to be dubbed in regional language if it‟s shown in Tier B
and Tier C cities.
2. Budgeting the film smartly: If the content of the film is something which will
alienate the masses then it needs to be kept low on costs. However if a film
requires lavish production values and it is guaranteed that it will enhance the
viewing quality of the film then the producers must not compromise on the
budget.
3. Good promotional campaign: The first look and songs of the film help create a
great impression in the minds of the people who have too many films to choose
from these days. Apart from that generating visibility through social networking
sites also adds to awareness about the film.

14. Conclusion
UTV has always been a frontrunner when it comes to innovation in movie business. It pioneered
a specific kind of films in India, started a new trend in movie production and distribution and
most importantly brought discipline in an otherwise disorganized industry. Hopefully, with the
world waking up to the talent that lies in India and potential of India as a market for movie
business, we will be seeing UTV spearheading the movement in putting India on the world map
in the film business through more international collaborations in the future.
References
Sources: http://en.wikipedia.org/wiki/UTV_Software_Communications
http://en.wikipedia.org/wiki/UTV_Motion_Pictures
http://www.boxofficeindia.co.in/size-and-contribution-of-the-indian-film-industry/
http://www.scribd.com/doc/2438171/Indian-Entertainment-Industry-Focus-2010
http://www.utvgroup.com/investors/pdf/utv-earnings-release-2q-fy-2010.pdf
http://www.slideshare.net/arveen/indian-film-industry