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Movies
1.
2. Breakthroughs (1/3)
⢠1902:The Electric Theatre, the first movie theatre built, by Thomas Lincoln Tally in downtown
Los Angeles. Admission was 10 cents for a one-reel movie.
⢠1906:The first feature film ever made was The Story Of the Kelly Gang , an Australian film
based on the infamous Ned Kelly
⢠1914: Charlie Chaplin makes his first movie, âMaking a Living,â filmed on 35 mm in Los
Angeles
⢠1927: Synchronized dialogue-The Jazz Singer
⢠1928: Mickey Mouse debuted in the first synchronized sound cartoon âSteamboat Willieâ by
the Disney Brothers Production Company.
⢠1933:The Writers Guild of America is formed from the Screen Writers Guild, formerly a social
club, when the film industry tried to institute a pay cut.
3. Breakthroughs (2/3)
⢠1941:The first commercial (aka. sponsored) television broadcast is held by ten
stations who received licenses from the FCC.
⢠1950:The Supreme Court ruled that movie studios could not own theatres and play
only the movies of their studio and movie stars .
⢠1951:First commercial colour TV program airs. Hollywood responds to decreasing
film sales with colour and wide-screen presentations.
⢠1952: Polarization 3-D System('Bwana Devilâ)
⢠1961:Regular in-flight movies begin with a TWA flight between NY and LA who showed âLove
Possessed,â starring Lana Turner.
⢠1967 Clint Eastwood becomes the Man With No Name, one of the first anti-heroes, in âA
Fistfull of Dollars.â
4. Breakthroughs (3/3)
⢠1973:George Lucas makes history by signing a deal with Fox for 40% of the merchandising
rights on a little picture known as âStar Wars.â In 1977, Star Wars debuts to gross 200 million
dollars and invents the blockbuster season.
⢠1991: Computer-Generated Imagery (âTerminator 2: Judgment Dayâ )
⢠1995: Computer Animation(âToy Storyâ )
⢠2002: Digital Cinematography -'Star Wars Episode II: Attack of the Clones'
⢠Live Animation-Tintin
5. Breakthroughs India
Roadside Romeo
Raja Harishchandra PVR
Sheila Theatre First Indian 3D
First Indian Feature First Modern Multiplex,
First 70mm Theatre, Delhi Animation by YRF
Film Delhi
& Walt Disney
1913 1961 1997 2008
1931 1974 1998
Alam Ara Ek Anek Aur Anek
Chota Chetan
First indian Sound Animation movie on DD
First Indian 3D
Film for edu prurpose
8. Stakeholder Analysis: Users
⢠Morning Show (Weekdays): School and College Students
⢠Morning Show (Weekends): Middle class families; Movie
enthusiast; friend groups
⢠Animation and superhero films: Kids & Teenagers
⢠English/ Hinglish Films: Big Metros and Tier 1 cities
⢠Family Movies: 40+ or families together on weekends
9.
10.
11.
12. Certified films by Language
Source: Central Board of Film Certification.
13. Stakeholder Analysis: Genre
⢠Pan-India Films These are the kind of films that are accepted by all the
classes. Be it the big metropolitan city or the most rustic region of the
country, people from both the places easily relate to such films.
⢠Masses The films falling into this category sell well among the masses.
They have elements of all emotions drama, comedy, actions etc. and
hence these films are popularly known as Masala films. This is mainly
escapist cinema and therefore is popular among the masses as it takes the
audiences in a completely different world altogether.
⢠Urban This is one category that has come up in recent times. These days
many films are coming up that are based highly on the urban culture in
the most advanced cities in the country.
14. ⢠Film Festivals oriented This is a new category of films that has come up in
the Indian cinema recently. Some of the films from this category are 15th
Park Avenue, 13th Floor, Quest, Water, The Last Monk and Hope And A Little
Sugar.
⢠Low grade Sleazy films The low grade, soft porn films has always had a
small but religious segment of target audiences. These films are mainly low
budget, with hardly any focus of creativity as the basic aim is to just sell sex.
But though they have low production value, these movies do make profits
from smaller sectors and a select few theatres in urban areas, which are
devoted to play only sleazy films.
20. EROS INTERNATIONAL PYRAMID SIAMIRA
UTV SOFTWARE COMMUNICATION YASH RAJ FILMS
PVR Ltd. INOX LEISURE
MUKTA ARTS FAME INDIA
CINEMAX PRITISH NANDY COMMUNICATIONS
1%
3% 3%
5% 23%
7%
8%
9%
21%
20%
Source: The Indian Media Business 2011 Edition
21. At a glance
2010 2015 CAGR
Market Size 1.94 3 9.3%
Domestic box Office 1.36 2.2 10.1%
Overseas Box Office 0.17 0.28 10.2%
Figures in USD billion
Average Ticket price(ATP) & Admissions
Country ATP(USD) Admissions(millions)
USA 7.89 1345
Canada 8.19 120
UK 8.96 166
China 4.34 345
India 0.69 2000
Source: PWC Global Entertainment & media outlook 2011-2015
25. Strategy Canvas 1/2
10
9
EROS INTERNATIONAL
8
UTV
7 COMMUNICATION
YASH RAJ FILMS
6
PVR Ltd.
5
MUKTA ARTS
4
PRITISH NANDY
3 COMMUNICATIONS
RELIANCE BIG
2 ENTERTAINMENT
RED CHILLIES
1 ENTERTAINMENT
SHRI ASHTIVINAYAK
0
VIACOM 18
26. Strategy canvas 2/2
10
9
EROS INTERNATIONAL
8
UTV COMMUNICATION
7
YASH RAJ FILMS
6
PVR Ltd.
5
MUKTA ARTS
4
PRITISH NANDY
3 COMMUNICATIONS
2 RELIANCE BIG
ENTERTAINMENT
1 RED CHILLIES
ENTERTAINMENT
0 SHRI ASHTIVINAYAK
VIACOM 18
29. Movie Distribution Process
⢠The film upon its completion is sent to the studio. Producers can recover up to 30 per cent of the
cost of the film by pre-selling it to distributors.
⢠The studio makes a licensing agreement with a distribution company.
⢠The distribution company determines how many copies (prints) of the film to make.
⢠The distribution company shows the movie (screening) to prospective buyers representing the
theatres and multiplexes. After the screening the prospective buyers estimate the commercial
possibilities of the film and decide whether they will distribute the film or not.
⢠The buyers negotiate with the distribution company on which movies they wish to lease and the
terms of the lease agreement.
⢠The prints are sent to the theatres and multiplexes a few days before the opening day.
⢠The theatre and multiplexes shows the movie for a specified number of weeks (engagement).
⢠The end user i.e. Viewers pay for a ticket and watch the movie. At the end of the engagement, the
theatre and multiplexes send the print back to the distribution company and make payment on the
lease agreement.
32. Movie Distribution
⢠Given the levels of risk and contingency film distribution is in many ways a highly complex
process .
⢠India is divided into 11 distribution territories many of which are further divided into sub-
territories.
1. Mumbai- Mumbai city, Gujarat, parts of Maharashtra, parts of Karnataka and Goa.
2. Delhi-U.P.: Delhi city, Uttar Pradesh, and Uttaranchal.
3. East Punjab: Punjab, Haryana, Chandigarh, Himachal Pradesh, and Jammu and Kashmir.
4. Eastern Circuit: West Bengal, Bihar, Jharkhand, Orissa, Assam and North eastern
States, Andaman and Nicobar Island, and Nepal.
5. Central Province : Eastern Maharashtra, southern and western Madhya
Pradesh, Chhattisgarh.
6. Central India: The rest of Madhya Pradesh.
7. Rajasthan
8. Nizam: Hyderabad city, parts of Andhra Pradesh, parts of Maharashtra.
9. Mysore: Bangalore city, parts of Karnataka.
10. Tamil Nadu: Tamil Nadu, Kerala.
11. Andhra: Parts of Andhra Pradesh.
34. Andhra Pradesh
21%
Tamil nadu
24%
Kerela
Karnataka
8%
19%
Maharashtra
9%
Uttar Pradesh
9% 10%
Other
Source: Cinema owners & Exhibitors Association of India
36. Hindi Marathi
16% 17%
8% Telegu Bengali
9%
11% Tamil Kannada
14%
16% 9% Malayallam Others
Source: Film and Television Producers Guild of India
37. ⢠In terms of revenue generated, south Indian movies dominate Bollywood. Films made in
Tamil, Telugu, Kannada and Malayalam are said to generate about Rs 1700 crore. This amount
is about three-fourth of the total Indian film revenue. In addition to that, Telugu film industry
alone churns more number of movies than Bollywood. Last year about 230 films were
released in Telugu.
⢠Income generated: South Indian Movies Vs. Bollywood
38. Revenue sharing
⢠June 6 2009-film producers are to get half of the revenue for the first week
of releases and a smaller share for each subsequent week: 42 percent for
the second week, 37 for the third and 32 for the fourth. Distributors and
producers will earn bonuses for films that do exceptionally well but will
have to pay rebates for movies that do very poorly.
⢠Under the previous movie-by-movie negotiation system, producers and
distributors said that they often got less than 50 percent of revenue and
that theatre owners would collectively dictate terms to distributors. The
theatre owners denied that they had colluded and said producers and
distributors often received the majority of revenue from successful
movies.
39. Ways of Movie Distribution
⢠Standard release:
This routine for a movie is regulated by a business model called "release windows". The release
windows system was first conceived in the early '80s, on the brink of the home entertainment
market, as a strategy to keep different instances of a movie from competing with each
other, allowing the movie to take advantage of different markets at different times.
In the standard drill, a movie is first released through movie theatres âtheatrical
windowâ, then, after approximately few weeks, it is released to DVD âvideo windowâ. After an
additional number of months it is released to Pay TV and VOD services and approximately a year
after its theatrical release date, it is made available for free-to-air TV.
I. Wide release is a term used for a motion picture that is playing nationally. Specifically, a movie is
considered to be in wide release when it is on 600 screens or more in the United States and other
countries.
Source: FICCI KPMG Report 2011
40. II. Roadshow theatrical release is when a film is opened in a limited number of theatres in large
cities for a specific period of time before the nationwide general release. Such releases were
shown only once or twice a day. Although variants of roadshow releases occasionally still
exist, the practice mostly ended in the early 1970s.
III.Limited release is played in a select few theatres across the country. It is often used to gauge the
appeal of specialty films (documentaries, independent films and art films). A common practice by
major film studios is to give highly anticipated and critically acclaimed films a limited release.
⢠Simultaneous release:
It takes place when a movie is made available on many media at the same time or with very little
difference in timing. Simultaneous releases bear great advantages to both consumers, who can
chose the medium that most suits their needs, and production studios that only have to run one
marketing campaign for all releases. The flip side, though, is that such distribution efforts are
often regarded as experimental and thus, do not receive substantial investment or promotion.
⢠Straight to video:
Such release occurs when a movie is released on home video formats (such as VHS, DVD, etc.)
without being released in theatres first, thereby not taking into consideration the "theatrical
window".
As a result of strong DVD sales, STV releases also achieved higher success and have become a
profitable market lately, especially for independent moviemakers and companies in mature
markets.
43. Classification Of Distributors
Yash raj P.P. Associates, Bobby Arts
Distributors handling more than 6-8 films per
International , Mukta Shakti Combines , Ginni
year.
Arts
Eurasia Visuals , Honey Enterprises, Jyoti
Distributors handling 2-3 films per year. Films, Competent Films, Magnum Films, Ekta
Films
Pooja Enterprises (films by Vishnu
Bhagnani), Eagle Films Pvt. Ltd. (F.C. Mehra), Ajit
Distributors handling films for particular
Films (Gulshan Rai) Shivangi/ Sunny Film
producers
Network (Deol Family) Rajshri Films (Barjatya
Family)
Distributors handling mainly older repeat run
Chand Pictures, Charu Films, VIP Film
films (rights for the film usually bought from
Distributors, Deepak Arts, Sultan Pictures
the above three categories of distributors)
Distributors handling mainly B Grade Pankaj Raj Movies, Saraswati Pictures, Devi
Foreign/Soft Porn Films Shakti Films, Raj Karan Movies
44. Financial sources for distribution
⢠Distribution of film needs huge amount of funds. Most distributors invest money
from their own funds, which circulates in the distribution business. Distributors
also borrow money from different private financiers (including black money from
the underworld).
⢠Reputed distribution companies like Yash Raj productions and UTV borrows money
from Banks on the strength of their balance sheet. They also collect funds from
IPOs like PNC or go to individual high net worth individuals or companies to put in
money as equity.
⢠Distributors also get financial support from theatre owners who are eager to
exhibit a particular film at their theatre. The lack of institutional finance is the
biggest problem for regional film industry.
45. Major problems confronted by
Distributers
⢠Financial : The cost of distribution is very high in India. Cost of making one print
works out to be about $1200, the cost of its releasing more than 500 prints can be
almost $ 600 thousand (close to 30% of the average cost of making movie)
⢠Problems with theatres : Sometimes distributors face problem in fixing up terms
of agreement with the exhibitors. The holdover figures are often fixed too high
and it is inflated quite often. after a few weeks, even if the film has not reached
the holdover limit, they play tricks to show the holdover has reached on a
particular day and stop screening the film before it has completely exploited the
market. In areas where the number of theatres is few, there is a problem of getting
theatres on time for films. Another complaint is that the theatres do not reveal the
correct accounts of collections to the distributor.
⢠Piracy : Piracy is one of the major problems affecting trade in this segment. At
present, there is no uniform method of estimating the contribution of core
copyright industry to the GDP and the potential loss of revenue due to piracy.
According to the Film Federation of India, the film industry is loosing
approximately US$ 76 million per annum in revenue due to piracy.
46. International Distribution
⢠Historically Indian films are very popular in Asian countries, Arab countries, Russia
and African countries.
⢠Bollywood films have huge fans in Iran, Pakistan, Bangladesh, Sri Lanka and Nepal.
⢠Bollywood also has a strong hold in South East Asia in countries such as China,
Indonesia and Malaysia. The fascination of Bollywood came to light in China during
the Dilip Kumar era.
⢠Bollywood is hugely popular in Africa with over 60% of African Nations becoming a
commercial success for Bollywood.
⢠After liberalization some of the domestic film production giants started to explore
the possibilities of international market.
⢠Film exports have grown from more than US$ 48.4 million in1998 (198 titles) to
around US$ 111 million in 2001. Presently Indian films are exported to around 95
countries world wide. Among them the US and Canada accounted for 30% of the
total exports (by volume of prints0 in the year 2000, followed by the UK (25%)
⢠According to FICCI FRAMES Conference annual growth rate (CAGR) of 18% which is
higher than the CAGR of the domestic box office at 16%.
Source: Audio-visual Policies and International Trade: The Case of India, HWWA-
Report, Hamburg Institute of International Economics
47. Entertainment Tax
⢠Exhibition of cinema films by cinema halls or theatres having valid licence for
exhibition under the Cinematograph Act, 1952 (Central Act 37 of 1952) and under
the Goa, Daman and Diu Cinematograph Rules, 1965:
⢠(a) On payment for admission not exceeding Rs. 50/-.
Nil.
(b)On payment for admission exceeding Rs. 50/- 25 %of the amount paid for
admission
Note: For tickets exceeding denomination of Rs. 50/-, the entertainment tax should be
charged separately in the ticket.
48. More on New distribution
⢠Tele Booking
⢠Mobile Apps
⢠Book my show & likes
⢠Pre book
⢠Corporate Booking
⢠Partnering with Banks + cards
⢠SMS Booking
⢠Ng pay
⢠YouTube