Distribution Channels Of The Indian Film Industry Economics Essay

India has about 13,000 theatres enjoying a weekly admission of about 100 million people or the 5000+ million per day. Distributors are the final link in the chain of the movie, which are been taken to the people.

Different distribution channels are being used by the industry to distribute the product to each and every area of the world some of them are:

Home entertainment distribution

Satellite TV distribution

Theatrical distribution

Physical distribution

For the proper distribution channels the various distributors are being involved in the process of distributing and even the distribution companies have taken place in the market to have the more perfection in the process of the distribution.

Some of the companies which are in the market and works for the distribution of the film all over the India are:

(TABLE 2)

Name of the Company

Place

Advance media Company

New Delhi

Braslm Media Entertainment

Mumbai

Trio Entertainment Network

Mumbai

Hotgenera.com

Bengaluru

Saransh Films

Pune

K K Film Networks

Hyderabad

Suresh Production Private Limited

Hyderabad

Some of the major categories of the current distributors are as follows:

(TABLE 3)

Distributors handling more than 6-8 films per year. Delhi – UP

Yashraj P.P. Associates, Bobby Arts International , Mukta Shakti Combines , Ginni Arts

Distributors handling 2-3 films per year. Delhi-UP

Eurasia Visuals , Honey Enterprises, Jyoti Films, Competent Films, Magnum Films, Ekta Films

Distributors handling films for particular producers

Pooja Enterprises (films by Vishnu Bhagnani), Eagle Films Pvt. Ltd. (F.C. Mehra), Ajit Films (Gulshan Rai) Shivangi/ Sunny Film Network (Deol Family) Rajshri Films (Barjatya Family)

Distributors handling mainly older repeat run films (rights for the film usually bought from the above three categories of distributors)

Chand Pictures, Charu Films, VIP Film Distributors, Deepak Arts, Sultan Pictures

Distributors handling mainly B Grade (Foreign/Soft Porn Films)

Pankaj Raj Movies, Saraswati Pictures, Devi Shakti Films, Raj Karan Movies

KEY ISSUES AND CURRENT TRENDS

Indian film industry over the earlier few years has been open towards foreign investments. This has cemented way for lots of international production firms to construct their entrance in Bollywood along with chance their offices in the India. As per FICC report, Indian movie industry is value $ 2.11 billion and is probable to observer a 9.1 percent growth till 2013.

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World’s major film business in terms of making volume is undergoing a enormous international company with Reliance ADA Group signing a production deal with DreamWorks Studios, authorized by Steven Spielberg, a glowing Hollywood director, to create movies with the preliminary venture of US$ 825 million.

Subsequent the lines, Yash Raj Films have signed joint partnerships with Walt Disney, to make animated movies. S. Leela Bansali Films partnership with TV 18 & Sony Pictures Entertainment association by means Viacom-18.

Adlabs has emerged as the only film chain in India given that 3D & PVR formats is all set to impart approximately $ 52.2 million to raise its film creation and bowling operation in India.

RECENT CHALLENGES

India has the world’s major film industry in terms of the quantity of movies produced 1000 films yearly, frequently in the Hindi language. Nowadays, the technology of movie-making in India is possibly the best among all developing nation’s while the films themselves stay typically repetitive in story line and comfortable.

The financing outline, centered on distributors, is supposed to have distorted since the 1960s when the studio classification collapsed and self-employed performers emerged. This gave grow to the ‘star system’ in which actor ceased to have lasting contractual obligations towards any film manufacture. Relatively, they began to work as freelancers unassailable fees in part to the box office performance of their new films. This enlarged costs of film production since the extra successful actors hogged key proportions of the producer’s funds.

Film production consequently became a risky business and the affiliation with various lenders strengthens more than the years. A low finances Hindi film can be completed for still as low as 15 million Rs. A big finances movie can cost in surplus of $30 million.

India has a National Film Development Corporation which investments some of films. NFDC cannot be measured to play a vital role in the film industry since it finances else few movies which, too, are not of the kind that has prepared the Indian film industry so exciting.

PESTEL ANALYSIS

POLITICAL ANALYSIS

Factors are how a government intervenes in the nation. Particularly, political factors comprise labour law, tax policy, environmental policy, trade boundaries, tariffs, & political constancy.

Government Support

With compared to governments in other nations efforts by the government of India to encourage the film industry have been very nominal.

Government Initiatives

A SEZ is going to be constructed in Thiruvananthapuram exclusively for the film & animation industry. The Film Video Park made an outstanding create once the Prasad Labs (Chennai-based) has made it its base to development every Malayalam movies for the subsequently two years. The government cans supplementary support investments & participation in the film industry by providing tax benefits.

ECONOMIC ANALYSIS

Factors comprise economic enlargement, exchange rates, interest rate & inflation rates. These factors have key impacts on how businesses work and formulate decisions.

India’s benefit in low costs has been exploited by lots of multinational production studios. The arrival of digital film with the liberalization of the economy of India & open the remuneration of lower production costs, strong innovative and scientific skills and a large English talking people. This has led to the growth of state of the films & art in some Indian cities by the way of collaborating with international entertainment companies.

Indian film making companies notable to competes their western counterparts in fiscal power. It is pointed out that state help in the form of tax benefits is critical for success in the film making business.

SOCIAL ANALYSIS

Factors comprise the cultural aspects & contain health awareness, population expansion rate, age allocation and safety.

There is huge demand from this part of Indian population for a new medium that facilitate information & communication sharing, while at the similar time, being simply available to the masses via the TV. Products of interactive medium and film can plug this demand gap to a huge degree; they can be vast tools for education, awareness & entertainment between rural and urban areas illiterates in India.

India can contribute in a more major way in the international films market, provided the country has built up essential manpower, with the related know-how, to fuel its growth. India has the probable to grow its film industry to approximately $ 1 billion in 2010, but will remain limited to $ 869 million on report of a scary supply-demand gap in the part of employable resources.

TECHNOLOGICAL ANALYSIS

Factors comprise environmental & ecological aspects, such as R&D, computerization, new technology and the velocity of technological alteration.

India’s film industry is growing at an amazing speed, the fact remains that this increases is mainly a result of the growing of “studios for hire.” The film industry is still youthful. The booming film outsourcing industry is continually demanding new skills & new infusion of talent into the industry.

Education in latest media has to be embedded into the normal curriculum. Students have to understand that they can have a profitable career as film maker or actor, & the governments as well as institutions have to establish programmed for their career progress.

LEGAL ANALYSIS

Factors comprise prejudice law, consumer law, employment law, antitrust law, & safety law.

Outsourcers have forever been afraid with the defense of their intellectual property in nation like India. India is unsuccessful to take several actions against its violation. India needs to reinforce its intellectual property policy & ensure that companies working in the outsourcing area take strict steps to take care of client intellectual property rights.

ENVIRONMENTAL ANALYSIS

Factors comprise climate, weather & its change, which may particularly influence industries such as farming, tourism, & insurance. Furthermore, rising consciousness to climate change is affecting how companies’ works & products they offer.

Indian firms are facing a talent scarcity which influences their capacity to degree up their operations based on client demand. This also affects the client assurance in off shoring huge chunks of work. Although Indian firms have set in place vast expansion tactics, these are often flawed by different reasons. Tie-ups with educational institutes are serving overcome this complexity.

CONCLUSION

The Indian interactive media and animation industry has seen tremendous growth in some of the last year. It is speedily emerging from being an outsourcing destination for western animation companies to develop and showcase its own capabilities and potentials. The emergence of various industry-related organizations and companies, and the availability of affordable and talented expertise, point to tremendous potential this sector has, and which is to be offered.

The transition in Hindi Film Industry had started long back. Transition was noticed in many aspects but there are some misconceptions in the minds of people regarding certain issues like smoking, drinking, doping, exposing by various actresses, crime and violence which they feel to have adverse impact on the younger generation. Reality is something which most of the people are not aware of. It is very important for people to clear their misconceptions that sexual content, kissing scenes, abusive languages, exposure by actresses etc. are not the result of the transition but they were part of olden movies also, although at a low scale.

As there are internal challenges to the Indian interactive media and animation industry, the efforts are being undertaken by the government and like-minded organizations, it will be sooner rather than later, that India will lay a strong claim as a major international player in this industry. It is thus favorable for Singapore and countries in the region to identify potential opportunities for collaboration so that we are able to ride on the waves of the Indian interactive media and animation industry.