New Delhi: Clocking a compounded annual growth rate (CAGR) of about 11 percent, the revenues of Indian film industry is likely to cross Rs. 19,300 crore mark by fiscal year 2017 from current estimate of about Rs. 15,500 crore.
Growing revenue contribution from overseas markets, improved quality of Bollywood movies, aggressive marketing campaigns, increase in number of multiplex and growing digitisation in the industry are stated as the basic reasons according to a just-concluded ASSOCHAM-Deloitte joint study.
“Box office collections in India that are currently estimated at over Rs. 11,500 crore are likely to cross Rs. 14,200 crore mark by 2017 and will account for about 74 percent of the majority of film industry revenues,” noted the study.
Titled ‘Digitization and Mobility: Next frontier of growth for M and E’, the study reports the film industry’s revenues from overseas box office collections, which are likely to cross Rs. 1,300 crore mark from current size of about Rs. 1,100 crore.
Rising demand for movies on TV together with growing penetration of smart phones across India will spur growth in cable and satellite rights and online/digital aggregation revenues which is likely to grow at a CAGR of about 15 percent till 2017.
The ASSOCHAM-Deloitte study also highlighted that home video industry will further shrink at a CAGR of 10 percent due to increasing piracy and growing popularity of digital platforms.
“Home video has lost share to video on demand (VoD) through direct to home (DTH) operators and over the top (OTT) platforms.
Highlighting the role of a fairly large and active regional movie industry both in local market and abroad, the study noted that cinema in southern India, especially Tamil and Telugu, might soon dethrone Bollywood from the top spot which accounts for 43 percent share in terms of box office collections by language.
Considering that the Indian film industry has not yet been able to create universally appealing movies for a global audience, such entertainment companies in the country need to develop content that would appeal to viewers, suggested the ASSOCHAM-Deloitte study.