DIBD India
The Indian Film Industry
25.
9.
12
DIBD India
Introduction to the Indian Bollywood Industry
•Current market situation
•Revenue distribution
•Product placement: Bollywood Industry
•Celebrity endorsements, management and brand
ambassadors
DIBD India
Current Market Situation
• Bollywood is the most known film producer in
India, and therefore the name is often used to
describe the whole film industry in India, even
though the industry is divided into many
regional areas. The Bollywood production takes
place in Mumbai (previously called Bombay),
hence the name Bollywood. The name also
reflects Americans counterpart – Hollywood.
• Bollywood is the largest film producer in the
world. They produce roughly 1000 movies a
year. Hollywood produces 500 and Japan
produces 400 movies a year.
• The Bollywood industry had a revenue of USD
$3 BN in 2011, and has been growing at
approx. 10,1% a year. The revenue is expected
to reach USD $4.5 BN by 2016.
DIBD India
Current Market Situation
• Bollywood films are not only watched by people in
India, also neighboring countries Pakistan,
Bangladesh, Nepal, Pakistan, Sri Lanka watch the
movies. Countries with large groups of Hindi and
Urdu speaking nationalities like Australia, UK, Africa
and the US have many Bollywood enthusiasts. Old
trading partners like Russia and Japan are also
buyers of Bollywood productions.
• Revenue generated from the ticket sales is only a
small portion of the industry.
• Celebrity endorsements and management have long
been the major profit base for the industry as well
as product placement, which is becoming
increasingly popular to integrate into the movies.
DIBD India
Revenue growth
4
3,5
3
2,5
Revenue in US$ bn
2
1,5
1
0,5
0
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
DIBD India
Sources of Revenue
Film Industry
Revenue in Percent (%)
Domestic Theatrical
74,0
Overseas Theatrical
7,0
Home Video
3,0
Cable and Satellite Rights
11,0
Ancillary Revenue Streams
5,0
Total
100
DIBD India
Key Drivers
• Growing middle class income - 300 million
• High return on investment
• Low costs of production
• Many Indians living abroad
• Increased importance of regional cinema
• Increased demand for multiplex theaters
• Indirect profits from product placements, celebrity endorsement etc
• Favorable demographic changes
• Higher quality and awareness of the films produced:
• ‘Slumdog Millionaire’; an International production has created a synergy
to Bollywood
• ‘Ra.One’ released in 2011; Price USD $30 million - most expensive
Bollywood production
• ‘Peepli Live’; nominated at the Sundance Film festival 2010 and
nominated for the 2011 Oscar ‘Best Foreign Language Film’
DIBD India
Bollywood Actors & Actresses in Hollywood and Vice-Versa
• Bollywood and it’s A-list actors have the same
status in India as royalty, presidents, and film and
rock stars have in the West
• Bollywood and Hollywood are opening up to each
other
• Bollywood -> Hollywood
• Anil Kapoor in ‘Slum Dog Millionaire’ and later in ’24’
• Aishwarya Rai Bachchan in ’Pink Panther 2’ with Steve
Martin and ‘The Last Legion’ with Colin Firth
• Hollywood -> Bollywood
• Ben Kingsley in Teen Patti (Three Cards)
• Sylvester Stallone in ‘Kambakht Ishq’
• Jennifer Chambers directed ‘Hiss’
DIBD India
Bollywood Company Collaborations
• Reliance Big Entertainment signed a deal worth
USD $1.2 BN with Steven Spielberg’s Dream
Works SKG to produce 36 films for the next 6
years.
• Reliance also acquired around 200 theatres in
28 locations in North America to screen
Bollywood and other regional movies from
India.
• Walt Disney has invested around USD $324
million in a deal with Yash Raj Films.
• Ramesh Sippy Entertainment has collaborated
with Warner Bros.
• Warner Bros has also signed a three movie deal
with People Tree Films and a one film tie up
with Tandav Films
DIBD India
Product Placement in Bollywood Movies
• Within the last ten years Bollywood has become
more international and begun to focus much more
on targeting the global audience and environment.
• Bollywood has realized the necessity to create an
ambience and environment in the movies, so the
movies can target both the Indian culture as well as
a more international culture overseas.
• Many younger Indians in India and elsewhere are
very aware of the Western culture, therefore
Bollywood tries to catch this attention with
product placement of Western products in the
movies.
DIBD India
Product Placement in Bollywood Movies
• Audi Q7, Mercedes, Toyota, Kawasaki
• Starbucks
• Exhide
• Tag Heuer
• Maybelline cosmetics
• MTV Music Television, ESPN Sports Network
• Coca Cola, Pepsi
• Sony, Nikon
• Pizza Hut
• Calvin Klein
• Goodyear
• Castol
• Etc
Businesses are also ‘placed´
• www.Bharatmatrimony.com matrimonial partner search
DIBD India
Endorsement, Management and Ambassadors
Aishwarya rai bachchan –
L’Oreal
Priyanka Chopra - LEVIS
Priyanka Chopra - Vera Moda
Sachin Tendulkar –
Adidas
Shah Rukh Khan – Tag Heuer
Sachin Tendulkar –
Royal Bank of Scotland
Shah Rukh Khan- Hyundai
Mahendra Singh Dhoni –
Reebok
• Celebrity endorsement is not restricted to Bollywood, but highly used for anybody who makes India stand out; cricket players and other sports
stars
•It is not rare that a brand ambassador is also endorsing a wide range of other diverse products
•Celebrity management is not only commercial functions but does also include celebrities being present at private weddings, birthdays etc. – all
functions has different rates
DIBD India
Want to know more...
Want to get more hands-on knowledge about the growing market opportunities for Danish
companies in the huge yet complex Indian market... DIBD offers two points-of-contacts:
Anders Kjøller
Manager,
DI Copenhagen
E: adk@di.dk
P: (+45) 33 77 37 72
M: (+45) 26 20 45 60
Kunal Singla
Director,
DI India
E: kusi@di.dk
P: (+45) 33 77 45 25
M: (+91) 99 30 56 27 61
• Anders works as Manager with focus on Asian markets in DI. He has over 10 years of
project experience from projects in Asia.
• Anders has over 4 years of hands-on experience in the field from the Chinese market
gained as Director of DI’s office in Shanghai (2007-11).
• Experience from several projects within the marine, food and utility industries
amongst others with business development, market studies, implementation of
market entry strategies as well as implementation of distributor management.
• Anders has a M.Sc. Economics & M.A. East Asian Studies.
• As the director of DIBD’s office in Mumbai, Indian-Danish Kunal is the man on the
ground in India.
• Kunal has substantial hands-on experience with various projects (including
partnership searches etc.) and recruitment in India.
• Kunal also has previous experience from the Commercial Department at the Royal
Danish Embassy in New Delhi, and DI’s Business Law department in Copenhagen.
• Kunal is fluent in Danish, English and the Indian national language Hindi, and has an
extensive network in the Indian business community.
• Kunal holds a M.Sc. in Business Administration and Commercial Law from Copenhagen
Business School, and has studied in the United States and China.