By SAT News Desk
Melbourne, January 5: Bollywood revenues are all set to jump in 2017, with Cable, satellite rights and online/digital aggregation revenues being the fastest growing segments. The overseas box office collections are also projected to rise despite the Indian film industry not creating movies for a global audience.
“Clocking a compounded annual growth rate (CAGR) of about 11 per cent, size of the Indian film industry is likely to cross Rs 19,300 crore mark by 2017 from the current estimate of about Rs 15,500 crore owing to growing revenue contribution from overseas markets, improved quality of Bollywood movies, aggressive marketing campaigns, increase in number of multiplex and growing digitisation in the industry, according to a just-concluded ASSOCHAM-Deloitte joint study.
“Box office collections in India that are currently estimated at over Rs 11,500 crore are likely to cross Rs 14,200 crore mark by 2017 and will account for about 74 per cent of the majority of film industry revenues,” noted the study titled ‘Digitization & Mobility: Next frontier of growth for M&E,’ conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) along with knowledge firm Deloitte.
While the film industry’s revenues from overseas box office collections are likely to cross Rs 1,300 crore mark from current size of about Rs 1,100 crore, it said.
Rising demand for movies on TV together with growing penetration of smart phones across India will spur growth in cable and satellite rights and online/digital aggregation revenues which is likely to grow at a CAGR of about 15 per cent till 2017.
The ASSOCHAM-Deloitte study also highlighted that home video industry will further shrink at a CAGR of 10 per cent due to increasing piracy and growing popularity of digital platforms. “Home video has lost share to video on demand (VoD) through direct to home (DTH) operators and over the top (OTT) platforms.”
Highlighting the role of a fairly large and active regional movie industry both in local market and abroad, the study said noted that cinema in southern India especially Tamil and Telugu might soon dethrone Bollywood from the top spot which accounts for 43 per cent share in terms of box office collections by language.
“Large national producers plan to spend 20 per cent of their annual budgets on regional cinema.”
Considering that Indian film industry has not yet been able to create universally appealing movies for a global audience, as such entertainment companies in the country need to develop content that would appeal to viewers (excluding Indian diaspora) abroad, the ASSOCHAM-Deloitte study says.
- SAT News Service.