Retail in the Indian Entertainment IndustryEssay Preview: Retail in the Indian Entertainment IndustryReport this essayABSTRACTThe Indian entertainment and media (E&M) industry has out-performed the Indian economy and is one of the fastest growing sectors in India. The E&M industry generally tends to grow faster when the economy is expanding. The Indian economy has been growing at a fast clip over the last few years, and the income levels too have been experiencing a high growth rate. India is the worlds largest producer of films and other sectors of media and entertainment are coming rapidly as well. In 2009, India produced a total of 2961 films on celluloid that include a staggering figure of 1288 feature films. The provision of 100% foreign direct investment has made the Indian film market attractive for foreign enterprises such as 20th Century Fox, Sony Pictures, Walt Disney Pictures and Warner Bros. Indian enterprises such as Zee, UTV, Suresh Productions, Adlabs and Sun Networks Sun Pictures also participated in producing and distributing films. Tax incentives to multiplexes have aided the multiplex boom in India. By 2003 as many as 30 film production companies had been listed in the National Stock Exchange of India, making the commercial presence of the medium felt.
This paper attempts to discuss the current and anticipated future scenario of Indian film industry and other industries related to media and entertainment so as to realize their hidden potential and their growth. This is done by studying the FDI trends as well as the marketing strategies adapted by the media houses/production houses before and after releasing of their films. The cases of working of largest retail chains of multiplexes like Adlabs and PVR have also been analysed in the present context. The objective of this study is also to understand the process of building brand in Entertainment sector, to study the barriers to investment in Indian Media Industry and freedom of expression in Indian media vis a vis the western media.
Key Words – Retail chain, Brand Building, Film Marketing, FDI, Barrier to Investment, Expressing Freedom.1.1 ObjectivesWe wrote this paper because we thought we are being unfair by not having many talks on the performance of Indian films. We wrote this paper to know where Indian Film Industry stands and the scope of it in coming future. With proper marketing tricks, Indian films can perform good business. We even aimed at discussing ongoing comparisons between single screen cinemas and multiplexes.
1.2 Research ProblemsThis paper discusses the problems Indian Films face in the market. We have discussed fault in marketing tactics. We have discussed Problems faced by Indian films in getting investment even though 100% F.D.I. is granted. We have even discussed the problem off retail unit – single screen cinemas face against giant multiplexes.
1.3 Methodology UsedWe have used secondary data collection method. We have assembled information ffrom various articles, book and other published papers. We have been working under Dr. Mukul Rawat, director of Shamuk Entertainment and he has been kind enough to guide us on our research.
2. IntroductionThe Indian entertainment and media (E&M) industry has out-performed the Indian economy and is one of the fastest growing sectors in India. The E&M industry generally tends to grow faster when the economy is expanding. The Indian economy has been growing at a fast clip over the last few years, and the income levels too have been experiencing a high growth rate. India is the worlds largest producer of films and other sectors of media and entertainment are coming rapidly as well. In 2009, India produced a total of 2961 films on celluloid that include a staggering figure of 1288 feature films. The provision of 100% foreign direct investment has made the Indian film market attractive for foreign enterprises such as 20th Century Fox, Sony Pictures, Walt Disney Pictures and Warner Bros. Indian enterprises such as Zee, UTV, Suresh Productions, Adlabs and Sun Networks Sun Pictures also participated in producing and distributing films. Tax incentives to multiplexes have aided the multiplex boom in India.
3. Indian Films – Current ScenarioWhile 2011 saw only five films (Wanted, Ready, Ra One, Singham and Don 2) breach the 100 crore INR mark at the box office, the first eight months of 2012 have already seen a similar number of films surpass this new industry benchmark for blockbusters. This is even before some of the other films by big stars such as Salman Khan’s Dabangg 2, Aamir Khan’s Talaash, Shahrukh Khan’s Jab Tak Hai Jaan and Ajay Devgn’s Son of Sardaar, are planned for release in the last quarter of the year. However, even though India is the largest market in terms of the number of films produced and the number of admissions, it is only the eighth largest when it comes to box office collections. This indicates the industry’s continued inability to monetise its films better, even though the film industry is coming of age with increased acceptance in overseas markets.
Content driven films giving big budget films a run for their money The last year and a half has witnessed strong performance by films that have relied on strong and differentiated content. As against a few years ago, when the success of a film critically hinged on its star-cast, recent times bear witness to the fact that Indian audiences have matured and are appreciating films driven by strong content and not necessarily star power. These include The Dirty Picture, Kahaani, Paan Singh Tomar and Vicky Donor, films that were able to rewrite rules and do good business at the box office.
Regional cinema producing some of their biggest hits, attracting Bollywood production houses While Indian cinema is synonymous with Bollywood, the regional film industry has continued to grow strong. In fact, large production houses that were largely producing mainstream Hindi film are now realising the huge potential that regional films offer. While UTV, Reliance, Eros and Yash Raj Films have all entered the Tamil film industry, the second biggest film market in India after Bollywood, Balaji Films produced and released its first Marathi film to packed houses. As per our research, about half of the films in UTV’s line-up for 2012 are in regional languages, while Eros Entertainment has a line-up of about 60 regional films in the next few years. Trade reports indicate that several regional films released during the last 1 – 2 years, have been highly successful. These include the following: – Jatt and Juliet, released in
὾, a thriller (ᯍ) featuring a young black girl who’s kidnapped for ransom; ᯍ G-O-P-P, about a group of rich teenagers (ᯪ).᷑ G-H-T. by Murali; ᯩ and Mothra.Ỽ and Durga Dal.ᯘ while there are even recent releases of this genre like ᾳ. In some cases, some regional titles are still produced by local studios, yet the majority of regional films in the same block are still produced by local artists. With the advent of mobile film, new cinema companies have come onto the scene, and by building a wider market for local cinema, some have come to understand the relevance of regional cinema. When I say, “The global cinema space is growing exponentially,” I mean that a “sophisticated, globally acclaimed” regional film industry is the most potent vehicle, as it can expand beyond the borders of a small, local village to create a global brand for itself. In fact, this is exactly how it works. The Bollywood movie market is as much an economic engine as any other in the world, with exports soaring 19% during the last ten years alone, while revenues are declining by around 10% per annum while foreign-made films outsell the local movies in India. It is not only this that India relies on, but increasingly to export. The UTV industry is an important contributor in this regard. The Bollywood movie market, along with the regional film industry, has the potential to become the engine of innovation in many sectors such as energy, energy efficiency, healthcare, education and manufacturing. The development of the global film economy is at an unprecedented level. The industry is very important in the creation of new industries for which new opportunities are sought. As a result of this, the Bollywood cinema industry is on the forefront of initiatives to increase diversity. The Bollywood film industry employs over 100,000 employees and has raised over $500m since 2006. Its annual turnover rate is estimated per annum to be over five times to the US$11 billion in the last few business years. Bollywood films in India are being considered the next billion-dollar success stories. With many of these films being produced for the international blockbuster market, these films have already become the core of the industry. That is the future for global cinema, with a growing percentage of the Indian population getting involved. As a result of all this, regional films are becoming a critical and critical asset, for global movie studios, distributors and general audiences. From all sides, there are many avenues for growth of regional films. It seems that there has been a trend toward better quality and quantity of regional movies produced by local filmmakers in recent years. In some cases, regional films are well-reviewed like – while in others, there is an outright lack of quality in the quality of the film. We know that regional filmmakers still don’t fully understand the world’s economic implications of regional cinema and are also not fully informed enough to understand why regional cinema is still a key element of the global film market. This is an important area for improving the quality and quantity of regional films. A major aspect of this has been seeing more regional films, primarily that of Bollywood and Balaji productions, that are released in different dialects, from smaller towns to national cinemas. We are seeing a surge in the Bollywood film market in Indian cities and some also in the global movie market. In some cases, regional films could easily be produced in India on the