An Insight Into Filmmaking in India

Film making in India has come a long way since the first full narrative film made an appearance in Bombay more than a hundred years ago, since the time the state-funded films promoted a social realism of the masses to the present time of studio funded productions.

  • With more than 1600 films produced every year in different languages, 3.5 billion tickets sold nationally and a box office gross averaging 2.5 Billion dollars, it is the third-largest film industry in the world.
  • Such distinct cultural variations in the form of regions, languages, economic status, etc, understanding the Indian film industry is no mean feat by itself. With the liberalization of the Indian economy and the granting of industry status in the 90s, organized capital has systematized film production in India, which earlier used to depend on dubious sources of money.
  • By the early 2000s, newer forms of film styles and stories have come to dominate the film industry which earlier still stagnated as the 90s plot direction and storytelling dominated the preceding decade.
  • Most importantly, the transformation of the economy and the rise of more than 300 million middle class have created a vast market for consumption of cinema. With 65% of India’s population comprising youth segment, it is the main driver of Indian cinema these days.
  • It is important to understand Indian cinema as comprising Bollywood and regional cinema. With 43% revenues, Bollywood or Hindi cinema has a large share of the pie closely followed by Tamil & Telugu cinema at around 36%.
  • In recent times, the success of regional cinema is providing a much-needed diversification in a Nation comprising 1.3 Billion population and with diversity that defies categorization.
  • With an estimated box office figures reaching 3.7 Billion dollars growing at an average of 11% CAGR, a newly emergent OTT industry estimated to reach 5 Billion Dollar in size, film making in India is a great chance to make money.
  • In 2014, we have already seen an example of investment in Abundantia Entertainment via the acquisition of a 49% stake in it.
  • Eros International and UTV have contributed to the rise of Studio Investment model of film production as well as distribution.
  • Studios have brought financial discipline into the business which was earlier individually driven. Eros has also diversified into OTT-business via Eros Now and it boasts a vast library of online films.
  • As we can see, Indian film OTT businesses are giving tough competition to international players like Amazon Prime and Netflix.
  • In the past, investor community in India considered film investment to be an unreliable and a risky model; mainly the questions of how distribution models could be monetized, how production estimates can be made to fall in line, etc.
  • haunted many of them. But, with more and more options of distribution, including rights acquisition, digital rights acquisition, etc, the risk factors have been minimized to a good extent and over time, we have seen investment rounds coming up in recent times sponsored by major as well as minor production houses.
  • The future of Indian film making is also bright in the sense that a newer political and social clime will allow new forms of film ideas to find their perfect expression in productions that are technically and visually far better than ever before.
  • New digital technologies and film formats will make the task much easier to disseminate films.