(18 February 2009 11:00 pm)

MUMBAI: After riding a bull run, the Indian film industry could be running out of gas in a tight credit market. Projects are being scaled back, star prices are getting corrected, and film producers are charting out new strategies.

"About 30-40 per cent of the films made will not be released this year. The marketing expenses are high and in some cases even surpass the film production costs," warns UTV Software Communications chairman and CEO Ronnie Screwvala.

Funding will be a big issue in an industry that has got used to spoilt budgets as companies like UTV, Big Pictures and the Indian Film Company have made efforts to scale up. "In the boom period there was excess money and everybody wanted to make films. But times have changed. Life in a fast lane is no fun if you are running out of gas (funding)," says Big Pictures COO Sunir Kheterpal.

Another area film producers have to work upon is tighter budgets. "The recession will help in actual 'cost realisation' of the industry as we move from a seller's to a buyer's market," says Kheterpal.

The year 2009 will also see a major drift from star-driven films to content-driven cinema. Says Screwvala, "Budgets have to be kept tight and original content has to be worked upon. This will also attract a lot of new talent and help in taking corrective measures to scale down prices."

Karan Johar, a maker of films set on grandeur scale, feels the time has arrived to rethink on content and line up small-budget films.

Screwvala, however, does not believe that small-budget films can de-risk losses. "If you make a film for Rs 60 million, you may end up losing all the money. But if you are making a Rs 500 million movie, you may stand to lose the same Rs 60 million. It is not easy to succeed on small-budget content-driven cinema," he says.

The focus will also have to be on strong scripts. "Scriptwriters need to be empowered" , says filmmaker Goldie Behl.