INDIAN FILM INDUSTRY ANALYSIS(growth)
The Indian Film Industry has been one of the oldest segments of the Indian entertainment industry. The Lumiere Brothers brought motion pictures to India in 1896, and since then there has been no looking back. Today, India has the world's biggest movie industry that churns out around one thousand movies each year. The Indian Film Industry is witnessing mark improvements on all spheres - from the technology used in making films to the themes of the movies, exhibition, finance and marketing and even in its business environment. There is no doubt that the Indian Film Industry is finally getting corporatized in that sense. 2005 was a watershed year for the industry. Indian Film Producers are also looking
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This has however not been the case with the rest of the states in India. Therefore, to avoid market fragmentation and distortions, a uniform and rational tax structure is required for the growth of the film industry.
The funding of films either through non-banking finance companies, venture funds, corporate funds or through corporate finance, was a significant shift from the traditional film- financing model. IDBI was the first to start funding film production, that too, to big banners, big names and established film-personalities. The traditional model used amongst others distributors funds, personal finances of producers, money lenders. Obviously, there were inherent drawbacks attached to these modes of financing.
Moreover, even banks are not forthcoming in financing film projects. Therefore, venture capital and private equity investment was clearly seen as a solution based on their appetite for risk and a conducive legal framework.
Under the applicable law in India, there is no restriction on private equity investment into film making directly, without routing it, via venture capital regulations as venture capital. However, there are issues involved with such direct (non venture capital regulations routed) investment, which they could avoid by operating via applicable venture capital regulations.
Corporatization of the Indian Film Industry has led to increased
The Australian filmmaking industry is less provisioned than foreign counterparts because of the lack of funding from the private and government sectors, especially after the dismantlement of the 10BA scheme through the late 80’s and 90’s. This decrease in funding from the private sector is recognised as a significant problem for the Australian film industry. The government funds are not sufficient to maintain Australian feature filmmakers on the world stage.
Once the money is in place, I will start up an LLC, a limited liability company. This will offer the needed protection and tax benefits for my movie production (Tomaric, 71). This will take care of financing, accounting, and legalities. This will separate the business side from making the movie. The LLC will have a good attorney that to do the paperwork. I will open a bank that only the producer will have access too. I will not open an escrow account, because I do not want to pay for an agent that has to monitor it. I will open a segregated account that only producers will have access too. Essentially, a segregated account is a savings account that only allows those authorize to have access to the money (Fortunato). From the money in this account, I will pay the cast, crew, and outside vendors with checks. I will also ensure a PPM, Private Placement Memorandum. This will make sure “investors are properly informed of risks” (Fortunato). Investors will not be able to pull out or back out from the project if they feel like it is not going to make money, and since they were informed of the risks they cannot sue me. The money will be
Hindi Cinema, famously known as Bollywood across the world, is one of the largest film industries in the world. The Era started with Raja Harishchandra by Dadasaheb Phalke, the father of Indian Cinema and Bollywood, who made the first film of Indian Cinema and Hindi Cinema. The first sound and colour films were made by Ardeshir Irani, called Alam Ara (1913) and Kisan Kanya (1937) respectively. The period between 1940’s to 1960’s was considered the “Golden Age” of Bollywood as successful hits like Pyaasa (1957) and Kaagaz Ke Phool (1959) by Guru Dutt, Awaara (1951) and Shree 420 (1955) by Raj Kapoor and Aan (1952) by Dilip Kumar.
After taking a closer look at the film industry in the current years, it is easy to see that the structure market of this industry is an oligopolistic market. This means that there are several big companies that contribute to more than fifty percent of the production of films produced each year. At the moment some of the companies that together combine for more than this fifty percent are Sony, Warner Brothers, Disney, and Paramount. These big production companies have a big hold on the market, and are able to produce movies each month to keep a tight grip on the market share. This makes them the leaders in this market, but there is still room for a private independent company to produce a film and have great success (“Leading domestic distributors”, 2013).
After the breakdown of the studio system the leading film companies started to buy each other on a conglomorate scale in order to increase their quality and income during the production or distribution of the film. Conglomorate ownership has been in the business for very long time and has shaped the industry. Most companies in hollywood are economically driven rathern than artisticly driven, therefore whilst making films it is in the company’s best interest to make more money. For the better understanding of the issua it is important to look at the history of the conglomoration throughout the film history and then to use a case study for futher more detailed research. Marvel Cinematic Univerves can serve as a great case study to
Investing in the right feature film can produce solid returns and that these returns can be substantial over the short, medium and long terms. It is interesting to note that the number of distribution channels for movies in general has increased greatly over the past several years. Cable and PAY-TV systems as well as Video-on-Demand platforms are growing exponentially throughout the world. In recent years new cable channels have been launched to satisfy the increasing interest in independent features. Channels such as the Sundance Channel and the Independent Film Channel are devoted to free spirited independent films and other related features.
Traditional avenues to secure financing have historically been through commercial banks (Types of Financing, 1996). The economic turmoil during the
The film industry, unlike the music industry or the art world, consists of simultaneously literary, visual and audio elements. As a result, the film industry is a complex industry with talents from more diverse fields involved. According to a web page, Film Jobs Hierarchy (2013), the production of a film normally consist of four phases, namely development, pre production, production and post production, and an additional phase of distribution. Each involves different parties. This essay will analyze the networks of cooperation among these parties in different phases.
Today, Bollywood seems to be unstoppable when it comes to the progress that it is making, with more than 100 movies under the umbrella of Bollywood being released every year. Despite the increasing competition in the Hindi-language movie industry, there seems to be a crème de la crème of Bollywood
There are various Bollywood movies, which were pristinely made in Hollywood. Simply taking a Hollywood script and making it in Bollywood for Indian audience will not work until unless you integrate an Indian touch to the script (Rao, 2010). In Hollywood movies, it is often found that a lot of movies have an open end for its sequel or sometimes portraying the evil as unvanquishable or triumpher (Rothman, 1996). Bollywood movies end with evil being vanquished or issues in the movie being solved with a blissful ending, (Nayar, 1997).
4. Venture Capital, this is an external source of finance in which a company may look for an investor to invest large sums of money in exchange for a large portion of the company.
Globally, the movie industry is a massive one. With the revenue made from the films alone reaching $88.3 billion worldwide, it is clear to say that despite the recent growth and accessibilities of recent technologies, buying DVDs and trips to the cinema are very much still at the forefront of many people’s minds. However, when producing a film, there is no guarantee that there will be an audience to watch the film, or even that it will make a profit overall. To minimise the risks of this, marketing and advertising is key to any means of success, as it provides companies with a booster that; if carried out correctly, can bring in substantial profits. The importance of marketing to this industry is highlighted on the Forbes website as it states ‘For every two dollars spent making a film, studios
Venture capital is a type of private equity capital provided by outside investors for financing new, growing, or struggling businesses. Venture capital investments are generally high-risk investments but offer the potential for above-average return. Obtaining the services of expert venture capital firm would be helpful for David, because these firms are competent of fixing ample funds effectively and efficiently to begin the business. When finding Venture investors The BVCA - British Private Equity and Venture Capital Association provide, promote all the services that David will require.
Ranking number one in the world for the film production, being part of the top group of the cinema enthusiast nations, endowed with T.V. channels and with a music industry full of dynamism, India has thus developed an entertainment industry of large size movies playing the role of a launching pad.
It is an arduous task to single out one specific reason accountable for the decline of the parallel cinema movement in India. There are numerous inextricable technological as well as economic factors involved. A decade of 1980 to 2000 in India saw radical economic and technological transformations. This was the period when Doordarshan exponentially expanded its network for the upcoming Asian Games in 1982 and colour television took birth. More importantly, this was also the period when the policy of economic liberalisation was launched. The liberalisation policy put an end to Doordarshan’s monopoly over broadcasting allowing the entry of satellite television. Shrewd media moguls like Rupert Murdoch and Summer Redstone hastened to get a toehold in an emerging economy that promised to become a burgeoning media market. In 1995, commercial internet came to India, and took off rapidly enough to enable a dot-com boom. Both satellite TV and internet captured the attention of the growing urban middle class eager for more media choice. These technological changes induced by digitisation changed media habits and concurrently transformed and took over both the production and exhibition of cinema. Large number of new players entered in film production and the exhibition of films unlike earlier were not only restricted to theatres but were simultaneously exhibited and promoted by satellite TV and the web.