The Indian Film Industry

2071 WordsJul 6, 20119 Pages
The Indian Film industry is largely a commercial industry with no state subsidies being provided. India is currently the world’s largest producer of films producing more than a 1000 films annually in 52 languages, selling more than 3.7 billion tickets worldwide and having over 400 production houses situated locally. 1288 films were released in India in 2009 (Central Board of Film Certification 6), compared to the USA, which released slightly more than half of India’s figure at 677 films (European Audiovisual Observatory 58). The first silent feature film made in India was Raja Harishchandra in 1913 (Media Scape n.p.) By the 1930s, the Indian Film Industry produced over 200 silent films annually before the first Indian sound film titled…show more content…
Balaji, Barathi and Ibohal note that the turning point for the Indian Film Industry came in 2001, when the Indian government accorded industry status for its film industry (289). Before 2001, the Indian Film Industry was largely dependent on private film financiers that charged inflated interest rates (289). Balaji, Barathi and Ibohal stated that the granting of industry status meant that it was easier to secure finances from established financial institutions at reasonable rates and brought much-needed transparency into the film industry (289). Once industry status was established for Indian Film Industry, corporatization occurred. Corporatization meant that the value chain was restructured, creating not just formalized networks and joint ventures but also large-scale studios in production, distribution and exhibition (Kukenshoner, Martinez, Mbaya, Schmutte and Watanabe 26). With corporatization, Bollywood film companies are then able to: (1) have larger-budget films; (2) better access to financial services, which could reduce costs through lowered interest rates; (3) more efficient production, technologies and marketing due to the increase in funds. There has also been slight alteration to the industry structure in recent times. The fragmented film production companies and distributors in India have been forced to progressively push towards a better corporate structure in order to compete in the Western markets (Dave 3). Down the

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