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Indian film industry to swing into growth after two years of slump


MUMBAI: After de-growing for two straight years, India‘s film industry is expected to swing into positive action in 2011 due to a strong string of releases in the second half of the year.


The sector, which fell 6.7 per cent to Rs 83 billion in 2010, is poised to grow at 9.64 per cent to close 2011 at Rs 91 billion despite a choked release window during the cricket World Cup and the Indian Premier League (IPL).


The industry is projected to grow at CAGR of 9.6 per cent to touch Rs 133.5 billion by 2015, according to the latest report by KPMG released at Ficci-Frames.


The contribution of domestic theatrical revenue to the overall industry pie is expected to reduce slightly, while the revenue share from cable and satellite rights is expected to rise and account for 13 per cent.





2010 was a challenging year as most films failed to create a mark at the box office. This, in spite of there being no multiplex-producer standoff or prolonged black window for theatrical release.


Though big-budget films with superstars managed strong opening week collections, most did not succeed to sustain footfalls across cinema halls in the weeks that followed, the report said.


However, small-medium films with original storylines and content gave film-loving audience a reason to smile. Success of films like Udaan, Love Sex Aur Dhoka, Tere Bin Laden, Phas Gaya Re Obama and Peepli Live indicate an increasing audience demand for strong content.


The year also saw the release of big-budget films like Kites, Raavan, Action Replayy, Khelein Hum Jee Jaan Se and Guzaarish among others. While most of the films met with limited success at the box office, the opening weekend collections and presale of cable and satellite rights ensured moderate recovery for the filmmakers.


The year gone by was also a year when Indian films managed to get into yet untapped markets. As of March 2011, Fox Star Studios had distributed My Name Is Khan in as many as 64 countries with the film releasing in Korea today.


The year also saw the Rajnikant-starrer Robot emerging as the highest grosser breaking the previous record set by 3 Idiots.
 

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