Television

Institutional finance on the up for Indian movies

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2016/07/26/Sony%20Pictures%20Television%20International.jpg?itok=Yc8F5I_e

MUMBAI: Institutional finance is beginning to flow in to fund Indian movies. IDBI, for instance, has sanctioned Rs 5.5 billion on a cumulative basis over the last five years. Exim Bank, similarly, has extended lending to over Rs 4 billion for film projects which have potential to earn foreign exchange.

"Overseas earnings from films recently financed by us has touched Rs 1.15 billion. We are not only financing on the production, but also on the overseas distribution side. The industry has a lot of potential even in the animation business," said Exim Bank chairman & managing director TC Venkat Subramaniam, while speaking at "India The Big Picture," a seminar here today on the film entertainment industry organised by the CII.

Exim Bank has a lending cap of Rs 250 million for a single film project. The film industry earns an estimated Rs 69 billion a year, contributing 26 per cent to the total revenue of the entertainment sector. This is just 1.7 per cent of the global market, said Subramaniam.

Export revenues have jumped from Rs 2 billion in 1998 to Rs 4 billion in 2000 and further to Rs 11 billion in 2005, accounting for 16 per cent of the total earnings. "There is a healthy outlook as we increase earnings from the international market, strengthen animation outsourcing, provide institutional financing and extend government incentives," he added.

IDBI is also cautiously bullish on the industry. "We have funded 70 movies. We are not only providing rupee loans but also in dollars for borrowers to hedge foreign exchange risk. Besides, we are extending line of credit so that film producers can cover up not on one but a slate of movies," said IDBI general manager Aloke Dasgupta.

IDBI funds only projects which have a minimum budget of Rs 4 billion and have a debt-equity ratio of 1:1. "We are providing financial support only for film production. We don't fund in the reail and distribution end of the business. But for supporting smaller movies, we are in dicussions with NFDC to ensure that money is put in the right place for such projects," said Dasgupta.

But are the southern films having access to institutional finance? South Indian Film Exporters association president and MD of Ananda Exports L Suresh said film financing had not trickled down to the southern region. "It is probably because most of the banks are headquartered in Mumbai. Besides, banks take a long time to sanction loans and we finish production within three months. Besides, banks insist on collateral securities," he said.

Speaking on the sidelines, Dasgpta, however, said IDBI had financed Tamil and Telugu movies.

Speaking on the occasion, Sony Pictures India MD Uday Singh said financial rigour was essential as the movie business is not without risks and revenue leakages. Media is fragmented and there are market access issues in certain states. "We have done enough hard work and there is now a bottom-up realism. We are extending from our distibution business and getting into film production as well. We are starting with one but are in alks with other directors as well. Our mandate is to have a slate of at least 2-3 films in a year's time," he said.

Emphasising on the importance of a theatrical success, he said the Hollywood studios are realising that fast growth would come from the BRIC (Brazil, Russia, India and China) markets.

Ernst & Young partner and head of media practice Farokh Balsara said the home video segment accounted for just 4 per cent of filmed entertainment revenues while in the US it was as high as 50 per cent. This sement could see increased activity as ventures capitalists have started to invest into new models of home video.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/30/rps%20%281%29.jpg?itok=xyUC64h7
Smith to lead Motorola-backed Rising Pune Supergiant, Ben Stokes on board

Heralding a new edition of Indian Premier League with renewed hope and vision in their second season, Rising Pune Supergiant, made a dashing entry into the 10th season of IPL, with their dynamic new Captain, Steve Smith and spirited middle order batsman Ajinkya Rahane by welcoming the new addition...

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/30/pacigfic%20%281%29.jpg?itok=ZGmbPGMh
Star World Premiere HD to air 'The Pacific'

Star World Premiere HD, one of India’s leading English Entertainment channel, has been a champion in introducing some of the biggest path-breaking stories ever told. These, coupled with memorable performances, award-winning characters and the biggest stars are sure to raise the entertainment...

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/30/bheem%20%281%29.jpg?itok=swEHQtH7
Super Bheem to be weekly show from 2 April

After the success of the television films on Super Bheem, Green Gold Animation & Pogo are gearing up to present Super Bheem in a weekly episodic format every Sunday, starting, 2 April 2017. The makers of Chhota Bheem, Green Gold Animation has come up with an upscale 3D-off shoot avatar to...

Television TV Channels Kids
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/30/Batman-v-Superman%20%281%29.jpg?itok=glffr2iV
'Batman v Superman: Dawn of Justice' TV premiere on HBO & HBO HD

Home to the biggest Hollywood blockbusters, HBO India is all set to host the Indian television premiere of Batman v Superman: Dawn of Justice. The movie will air on 2 April at 1 p.m. and 9 p.m. on HBO and HBO HD. The superhero movie is the first live-action film bringing Batman and Superman...

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/30/channel-v%20%281%29.jpg?itok=3ezp0Kmg
Channel V launches ‘Only On V’, ties up with Sanam

In a step to further strengthen its position as a music channel, Star India’s Channel V has launched Only On V. The platform plans to offer differentiated content akin to the tastes of the new generation which enjoys both Indian and international music.

Television TV Channels Music and Youth
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/30/zstuido%20%281%29.jpg?itok=CHWVYbdH
English Ent channels witness increased ratings except FX

HBO dropped out of the Top 5 English Movie channels' list this week paving way for the entry of Zee Studio. Players in the genre witnessed mixed ratings. Channels in the English Entertainment genre have seen a steep rise in the viewership except FX.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/30/nagin2%20%281%29.jpg?itok=eQ4wcoNL
Star Plus & Sony Pal retain respective leadership, Naagin 2 maintains lead

Week 12 of Broadcast Audience Research Council (BARC) India saw no major change in the rankings. Star Plus and Sony Pal continued to lead their respective markets. Zee TV in Hindi GEC Urban market grabbed the third slot, and Sony Entertainment Television slipped to fourth.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/30/amc%20%281%29.jpg?itok=NDDeZ2CT
AMC Networks promotes Geraud Alazard to SVP - marketing

AMC Networks International, a subsidiary of AMC Networks Inc., has appointed Géraud Alazard as Senior Vice President of Marketing. Promoted from the position of Vice President of Marketing for AMC Global and SundanceTV Global, Alazard now has responsibility for all AMCNI portfolio brands including...

Television TV Channels People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/30/star-india%20%281%29.jpg?itok=wBlLOULk
Star India producer: Incredible to know about art and evolution of storytelling

"It was insightful to know about the conscious and subconscious mind, and it was incredible to know about the art and evolution of storytelling," said Star India senior producer Avni Bhatija. She was among a gathering of creative heads at Qench Studioz at Lower Parel, Mumbai, recently.

Television TV Channels GECs

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories