January 5, 2016
Mumbai: Revenues from the Hindi film industry are likely to cross Rs 19,300 crore by next fiscal, owing to aggressive marketing campaigns, growing contribution from overseas markets and improved quality of movies, says a study.
January 5, 2016
Mumbai: Revenues from the Hindi film industry are likely to cross Rs 19,300 crore by next fiscal, owing to aggressive marketing campaigns, growing contribution from overseas markets and improved quality of movies, says a study.
The current estimated size of Bollywood is about Rs 15,500 crore. Increased number of multiplexes and growing digitization in the industry are also contributing to the rise in revenue.
“Box office collections in India that are estimated at over Rs 11,500 crore are likely to cross Rs 14,200 crore mark by 2017 and will account for about 74% of the majority of Bollywood revenues,” said the joint study conducted by the Associated Chambers of Commerce of India, and Deloitte.
The industry’s revenues from overseas box office collections are likely to cross Rs 1,300 crore from current size of about Rs 1,100 crore, it said. Rising demand for movies on television along with growing penetration of smartphones across the country will spur growth in cable and satellite rights.
Online and digital aggregation revenues are likely to grow at a compound annual growth rate (CAGR) of about 15% till 2017, it said. The study noted that the home video industry will further shrink at a CAGR of 10% due to increasing piracy and growing popularity of digital platforms.
“Home video has lost share to video on demand through direct to home operators and over the top platforms,” the study added.
Noting that regional movies are gaining popularity in India and abroad, it said that cinema in southern India, especially Tamil and Telugu, may soon dethrone Bollywood from the top spot which accounts for 43% share in terms of box office collections by language.
“Large national producers plan to spend 20% of their annual budgets on regional cinema,” it said.
Courtesy: PTI
