Annual revenues from the Hindi film industry are likely to cross Rs 193.00 billion by next fiscal, owing to aggressive marketing campaigns, growing contribution from overseas markets, and improved quality of movies, says a study.
The current estimated revenues of Bollywood is about Rs 155 billion.
Increased number of multiplexes and growing digitisation in the industry are also contributing to the rise in revenues.
“Box office collections estimated at over Rs 115.00 billion are likely to cross Rs 142.00 billion by 2017 and will account for about 74 per cent of the majority of Bollywood revenues,” said the joint study conducted by Assocham and Deloitte.
The industry’s revenues from the overseas box office collections are likely to cross Rs 13.00 billion from current size of about Rs 11.00 billion, it said. Rising demand for movies on TV along with growing penetration of smartphones across the country will spur growth in cable and satellite rights.
Online and digital aggregation revenues are likely to grow at a compounded annual growth rate of about 15 per cent till 2017, it said.
The study said the home video industry will further shrink at a CAGR of 10 per cent due to increasing piracy and growing popularity of digital platforms. “Home video has lost share to video on demand through direct to home operators and over the top platforms,” the study said.
Noting that the regional movies are gaining popularity in India and abroad, it said cinema in southern India, especially Tamil and Telugu, may soon dethrone Bollywood from the top spot which accounts for 43 per cent share in terms of box office collections by language.
“Large national producers plan to spend 20 per cent of their annual budgets on regional cinema,” it said.-Asfar