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Examining The Short Record Of The Indian Movie theater Media Essay

In 1896 Lumiere brothers cinematographe displayed their short movies (rather videos) in Bombay's Watson hotel. It needed another 17 years for India's first feature film to be produced in the united states: Dada Saheb Palke's Raja Harish Chandra. It had taken another 15 peculiar years for India to create its first talkies.


Alam Ara (1931) was the first talkie feature film in India. Its dialogues in popular Hindustani (Hindi) and it's really music made it a smash strike. This success unveiled songs in hindi theatre with videos like 'indrasabha' which had around 71 tracks. Film music became a occurrence which is synonymous with Indian theatre.

Movies were soon made various regional languages like Bengali, telugu and tamil. The craze spread to other parts of the country and videos were stated in languages like Gujarati, oriya, Malayalam etc.

Golden Era

Post-independence saw the blooming of the film allover India. 50's was the decade which is generally characterized as the gold decade of Indian cinema and Hindi theatre. Directors like Guru Dutt, Raj kapoor, Bimal Roy were making artistic movie theater as well as commercial successes. This is time of optimism as India got just gained self-reliance and the topic matter of the films was generally sociable issues and issues of countrywide integration. Pan-India theatre was thriving as directors like Satyajit ray, Ritwik Ghatak were making splash on international film circuit. The mood was reverse in the 70's as Hindu rate of growth and unemployment acquired created critical mas of disenchanted youth which lapped up the 'upset young man' portrayal by Amitabh Bachhan in movies like 'Deewar', 'Zanzeer', 'Sholay'. There is also a parallel movement in hindi movie industry with directors like Shyam Benegal, Govind Nihlani at the fore entrance. 1980's can be called by far the worst 10 years for Hindi theatre and catalyst for the decrease was the technology of VHS. This led to low attendance in movie theater halls and 'formulaic' videos were being manufactured in the wrong notion that it will lead to certain returns (hello there! You can find no assured profits in an innovative Endeavour).

Current scenario

Although there is some improvement in the 90's however the rate was too gradual. This again sustained in the new millennium. With the advancement and proliferation of multiplexes', it has become simpler to reach market (urban midsection and upper middle income audience), also the financial limitation on theatre hall owners to show movies that will fill chairs in huge single screen hall were removed which made these films commercially viable. The films catering to the urbane visual sense generally has a lot more contemporary themes and is also less restricted in their subject material. But this change hasn't really better quality of Indian movie theater drastically both aesthetically and technically. Lack of professionalism which can stem from various factors like lack of organized funding, insufficient talented people (how many film schools is there in India) is plaguing the industry. Also the star system making the complete creative aspect of this aspect on the back burner is also responsible for good cinema not coming out.

International Film Festival of India

IFFI (Indian international film celebration) is the oldest film festivity in India, started in 1952. It show cases huge panorama of Indian theatre as well as world cinema, with a perspective on a world known grasp director. It really is held each year in Goa.

The Industry

Indians love their videos and the Indian Film Industry is one of the most significant is the world with 1000 videos released and 3 billion movie goers yearly. It's the only industry in M&E that includes a cross sector impact. Thus, it indirectly or immediately facilitates the growth of industries like Music, Radio and Television set.

The advent of new systems acquired helped the industry immensely with respects to film development, exhibition and marketing. The corporatization of the industry has made the previously disorganized sector more streamlined. Companies like BIG Cinemas, Mukta Arts, along with the Indian Film Company have come out with public issues. FDI in all film-related activities has been allowed up to 100% by the federal government. This has resulted in the influx of big players like Warner Bros, Sony Pictures and 20th Century Fox in to the Indian market segments. Thus, the future of Indian Film Industry is secure amid increasing creation costs and financial instability.

The theatres across the country are being upgraded to multiplexes and the setup of more digital theatre halls has already started. This will certainly reduce piracy and make the film observing experience more pleasurable. Low budget videos have found a market in the multiplexes that was earlier not possible in single screens. With high ticket costs in multiplexes a movie can retrieve the majority of its costs in the first week itself. More movies are being made to cater to the NRI audience as it earns the dollar earnings. More emphasis is on this content of the film as the exhibition time has reduced thus improving the grade of cinema.

Size and Growth Rate

In 2009 the projected earnings was 109. 2 billion. The industry is projected to increase at the CAGR of 9. 1 percent over another 4 years, and reach the size of INR 168. 6 billion by 2013.


Domestic field office collections will probably continue to stay the dominant income source for the industry. However, other earnings streams may continue steadily to grow at a faster rate.


Increase in quantity of multiplexes is expected to lead to better realizations owing to better occupancy rates and higher Average Solution Prices (ATPs) at these multiplexes.

Filmed Entertainment Sector: Growth Drivers

Expansion of multiplex screens leading to better realizations

Increase in volume of digital displays facilitating in wider Film designs releases

Enhanced penetration of home video recording segment, mainly in the sell through segment

Increase in range of TV channels fuelling demand for Film content, and hence resulting in higher C&S acquisition costs

Improving collections from the overseas markets.

Key Players

The recent development in Indian film entertainment space is the emergence of media properties which has existence in almost all verticals of film business, be it production, distribution, Disc sales etc. across various markets(not just Bollywood).

UMP (UTV MOVIES) - part of UTV Media

Yash Raj Films

Eros Entertainment - part of Eros International

Reliance Big Entertainment Ltd. (RBEL)

Moser Baer Entertainment.


Traditional Distribution

Generally producers purchase the price of distributing the film in any o the 10 major territories (major ones being, Delhi-UP and Mumbai). The territories have been divided by the trade considering the sociological and other choices. To get the film ratio, the price tag on the film is divided by the distributor by the circulation price at the Mumbai centre. Some of the film development companies have their own circulation arm.

Digital Distribution

Digital cinema, or as some call it, e-cinema, is the latest concept in cinema distribution and exhibition. Hughes India -- the neighborhood subsidiary of the U. S. -established Hughes Network Systems, that promises to be the world's leading specialist of broadband dish services -- defines digital cinema as the blend of three phases: digital creation or post-production, digital delivery and digital projection merged into something or string that offers a higher or improved movie-viewing experience to viewers.

A film can be projected through an electronic training video projection system by taking an already produced movie created either digitally or using celluloid and transforming it to digital video tutorial format. This video tutorial once sent to the theater either using physical means or satellite tv circulation, is stored on a computer hard drive installed at a theater for repeated play-out during various shows.

At present, making images accounts for about 15-25 per cent of any film's total development cost, with prices of every print varying between Rs 80, 000 to Rs 1 lakh, with regards to the quality. A couple of DVDs, in contrast, would only cost just as much as Rs 8, 000-9, 000 per printing. And LDs would cost around Rs 15, 000- 20, 000 per disc. Moreover, there would be no time-lag for prints to attain the theatres, through A-class metropolitan areas (metros) to B and C school centers. Normally, film spools take at least 5-8 weeks to attain these metropolitan and semi-urban places. The films could be released in all places simultaneously allowing recovery of investment in a much shorter time-frame.

Environmental Scanning

Low marketing penetration in lower socio-economic classes (SEC)

Media penetration is low is lower socio-economic category though aggregate penetration in these categories is a lot higher.


India is one of the largest producers of movies on the planet. Encompassing three major spheres of activity - development, circulation and exhibition, the industry has an all-India spread, employing thousands of folks and entertaining a huge number each year. The various laws in force regulating the making and verification of films are: -

1) The Cinematograph Take action, 1952 - The Cinematograph Function of 1952 has been handed down to make procedures for a qualification of cinematographed films for exhibitions by means of Cinematograph. Under this Action, a Panel of Film Censors (now renamed Central Table of Film Documentation) with advisory panels at regional centres is empowered to look at every film and sanction it whether for unrestricted exhibition or for exhibition restricted to adults. The Panel is also empowered to won't sanction a film for open public exhibition.

In K. A. Abbas v. Union of India, the petitioner for the very first time challenged the validity of censorship as violative of his fundamental right of conversation and manifestation. The Supreme Courtroom however witnessed that, pre-censorship of movies under the Cinematograph Take action was justified under Article 19(2) on the ground that films have to be treated independently from other types of art and expression because a movie was able to stir up sentiment more deeply and therefore, classification of films between two categories 'A' (for adults only) and 'U' (for those) was brought about.

Furthermore, in Bobby Skill International v. Om Pal Singh Hoon, the Supreme Judge re-affirmed the afore-mentioned view and upheld the order of the Appellate Tribunal (under the Cinematograph Work) which had followed the rules under the Cinematograph Act and granted an 'A' certificate to a film.

2) The Copyright Action, 1957 - Matching to this Act, 'copyright' means the exclusive right to commercially exploit the initial literary, dramatic, imaginative, musical work, audio recordings or cinematographic films as per the wants of the owner of copyright at the mercy of the restrictions imposed in the Work.

Although this Action, is applicable to all the branches of media, in a few areas it is specific to this particular genre. Regarding a Cinematographed film, to do or even to authorise the doing of any of the following works would lead to the infringement of copyright. Those functions are particularly: -

· To produce a copy of the film

· To cause the film, in so far, as it includes aesthetic images, to be observed in public and in as far as it consists of does sound to be observed in public

· To make any record embodying the recording in any part of the soundtrack associated with the film by utilising such sound track

· To speak the film by radio-diffusion

The Action also helps it be a cognisable offence for anybody to sell, hire, distribute, exhibit, have or view any unauthorised recordings and prescribes severe fines, including imprisonment, fines as well as confiscation of the equipment used for the intended purpose of such saving and exhibition. The Amendments for the Copyright Action also prohibit unauthorised transmission of motion pictures on the cable.

3) Cine Workers and Cinema Theater Workers (Regulation of Career) Action, 1981 - This legislation affords a measure of protection to people employed in the industry by imposing certain responsibilities on motion picture producers and theatre owners concerning the former's condition of service.

4) Cine Workers Welfare Cess Act, 1981 and the Cine Staff Welfare Fund Act 1981 - They seek to create method of financial support to cine employees, the seasonal and unpredictable characteristics of whose employment often leaves them impoverished and helpless. Besides these, there are also a few local legislations, which influence the film medium. Below are a few examples:

5) The Bombay Police force Action, 1951 - It includes provisions empowering the authorities to regulate the exhibition of films in the talk about of Maharashtra (formerly Bombay).

6) Bombay Cinemas (Legislation) Take action, 1953 - It offers a plan for point out licensing of cinema theatres and other areas where motion pictures are exhibited

7) The Bombay Entertainments Responsibility Function, 1923 - It imposes a duty on the public exhibition of movies and other varieties of entertainment.

New Developments in the industry

Actor based creation House

New age development houses are mostly owned and marketed by stars. Various film companies i. e. Red Chillies ent. by Shahrukh Khan; Aamir Khan productions; Illuminati productions by Saif Ali Khan

Indian hindi film industry has always been dependent on the legend value. This modern production houses derive from the same principle where along with personal providing the celebrities market their motion pictures and also direct and produce videos that interest them.

Festival Circuit

Many production residences are establishing sister companies to work on experimental movie theater which is not commercially feasible.

UTV movies has established UTV Spot Guy for the same purpose. This craze is very healthy for the movie industry as it helps promote all varieties of movie making.

The 'Bollywood' Brand

In recent years, western film makers have started noticing Indian theatre and are making films with India centric theme and performers. The success and recognition of "Slumdog Millionaire", using its Indian locales, musicians and artists and music underscores the growing effect of Indian Cinema and augurs well for Bollywood film makers targeting the global audiences.

Clearly, Bollywood is a much bigger brand today than few years back.

The development of this brand and the awareness about Bollywood has been catalyzed by many factors in recent times:

Indian manufacturers aggressively promoting their films in international film festivals such as Cannes

Increasing use of international locations in Indian films

Increasing coverage given to Bollywood in the european media

Indian film prize functions such as IIFA that happen to be held at an international scale outside of India.

Challenges for the Industry

The 12 months 2008 was a learning year for the industry with the sector reeling under the twin impact of lower success percentage when compared with this past year as well as facing difficult competition from sports such as IPL. The ongoing liquidity crunch has also damaged the movie making business and has slowed up the money to providers and corporates. As a result the number of film releases is expected to reduce in the near future. Even though recently, small budget movies have viewed an upside probable, the overall success of videos has been adversely impacted.

To summarize and reiterate the issues for the sector:

Piracy - This is truly the bane of the Indian film industry. It is estimated that just as much as INR 20001 crores is lost due to piracy yearly. Films are occasionally released in the pirated market no earlier than 12 hours following the standard release for as little as INR 20. In the event the industry can combat piracy then the potential revenue upside for the sector could be significant

High Remuneration Costs - Stars' fees have been growing steeply of late which renders some projects economically unviable as they are unable to recover their costs

Content - Film making is an innovative business and the principal drivers for a good film is its content. The industry must come up with good quality and original content which attracts the audience

Liquidity Crunch - In the last few years we've witnessed corporate houses jump onto the film making bandwagon; however because of the recent financial downturn they are really facing a liquidity crunch and funding that was common in the film industry has dried up. Because of this we will probably see movies which have been produced not being released. Sporting events like the IPL could also impact the releases of the motion pictures. Producers opt to time their movies release after the sports such as IPL that could then bring about a glut of movies being released at the same time leading to a lot of vying for similar resources such as distributors, exhibitors etc. Low to medium budget movies may be impacted the most because of this as they don't have the necessary clout

Infrastructure - The industry is grappling with insufficient facilities in terms of quantity of shooting floor surfaces available, dubbing studios, equipment, exhibition centers, this is compounded by the fact that the burgeoning Television industry is also competing for the same finite resources. The need of the hour is to establish additional high tech studio room facilities which can provide as a one stop look for all the pre and post creation activities.

Competition- There is certainly increasing competition for the audience wallet and mind show from options like IPL, online games, solution 1 etc. It really is becoming increasing harder for motion pictures to break through the muddle and emerge as the champion in this fight.

These difficulties also underscore that in the years ahead the industry may very well be driven by original content, technological developments and agility in responding to changing customer tastes. Stakeholders over the value chain might need to take further action to unleash the true growth potential in the sector.

At a business level, the next initiatives will probably assist in unlocking value for the sector:

Improve consumer connect by buying new formats and content

More endemic distribution of Home Video, e. g. at grocery stores etc. , to assist in easy access

Take coordinated and proactive action to handle piracy

Promote and test out new talents

Improve organizational ability to entice and retain ability

At an individual level, players need to give attention to developing new functions and strengthen their strong areas. Companies need to focus on maximizing their income from alternate income streams. With all the Video recording on Demand services on both DTH and IPTV likely to pick up in future, players need to build up a strong and diverse content collection to capitalize on content demand as well as mitigate their dangers.


The players in the Hindi film making industry have already been discussed. In the total value chain analysis the inbound logistics would involve stars, technicians, creative people, and machines (which can be available for employ the service of).

Operations would entail the creation costs. Actually inbound-operations are over lapping in theatre industries case. The out-bound operations include distributers which take the movie to screens from coast to coast, advertising of T. V. Privileges, DVD privileges etc.

Marketing of the movie sometimes is performed by first marketers. But a fully integrated movie company would take action itself.

Forces of suppliers (which range from distributers also) are extremely strong. Even though you make a product it'll be very difficult to market it to a good price to marketers, unless you have stars which can make the value of your product go very high.

Substitutes like T. V. are not actually an alternative with arrival of systems like DTH which make it another medium of transmission. And as the production and content value of videos are perceptibly high, T. V. is not really a threatening alternative. Also, movie viewing can be an experience and more and more consumers take it as an outing, so cost is not really a restraint.

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