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MUMBAI:
The Indian film industry is buoyant and is generating
a lot of investor interests globally. However, it is
marred by multiple challenges including a huge gap between
investors and creative pieces, industry experts opined
at a panel discussion at the 13th edition of Ficci Frames
here.
India
is one of the biggest producers of films. “However,
out of 1,200 odd films that were released last year,
only 100 were studio produced,” said Moxie Entertainment
MD and independent filmmaker Soumo Ganguly. “This
clearly means that the other 1,100 films were made of
independent funding either by banks or with the help
of high net worth individuals, family, friends and relatives.”
Ganguly
said it is a challenging task to always depend on such
funding and, hence, difficult to find finance.
Speaking
about a large pool of capital available by the way of
private equity, Ambit Group CEO Ashok Wadhwa pointed
out that while securing finance from high net worth
individuals is an option, the challenge arises when
the investor does not understand creative pieces.
On
a different note, Wadhwa also advised aspiring filmmakers
to be absolutely certain about their finances. “I
would like to advise aspiring movie makers to not
start their projects unless they have 100 per cent
of the film expenditure secured in their bank accounts,”
he said.
Speaking
about revenues generated through selling of television
rights, Blackstone senior managing director of private
equity Mathew Cyriac said that the producers are generating
more revenue from selling movie telecast rights to
broadcasters rather than box office collections.
“Television
is becoming a bigger distribution point for movies.
In Kerala, 50-60 per cent of movies get acquired by
general entertainment channels. Similar is the case
with Karnataka and other southern markets,” Cyriac
said.
Talking
about the challenges in movie making business, he
said that the studio model is yet to emerge in India.
“Studio
business in India is the early 1950s equivalent of
business in the United States. Hence venture capital
flavour of investment is seen more in India,”
he said.
Speaking
of combining the best of investor and creative pieces
to create a hybrid model, Hollywood-based The Allegiance
Theater founder and partner Daniel Dubiecki said that
it would be fruitful to bring together venture capitalists
and studios models.
“Group
of angel investors have increased, which it is good
news for the movie business,” he pointed out.
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