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Home , 1492 Pictures, Chandni Chowk to China, Danny Boyle, Dhirubhai Ambani, Jim Carrey, Namastey London

Close Encounters of A Different Kind Film producers and directors, studios and financiers from and Hollywood are increasing their exposure and stake in each other’s markets. A report by Dipta Joshi.

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Namaste Hollywood: Bollywood stars and in Namastey

UCH before British director ready films has added immense value to ’s Oscar-award our existing library.” winning film on , SPE was one of the first Hollywood ‘’, took studios to get the government’s approval MIndia to Hollywood, some of its biggest as early as 1996, to set up a presence in studios had already recognised the poten- . Though ’s first Hindi movie produc- tial in India. tion, ‘’ (November 2007), did Investing in offices and other facili- not last long at the theatres, the company ties in India, these Hollywood studios are stays committed to its plans for the Indian now making movies to offer audiences entertainment market. everything that blockbuster Hindi films It has been associated with a number do. Bollywood too is reaching out to the of big- and mid-size productions like ‘Raaz American film industry to garner a share – the mystery continues’, ‘Hello’ and the in the global entertainment business. soon-to-be-released ‘Tere Sang’. Hollywood’s biggest players have Another Hollywood major, Walt Disney stepped up their Indian plans to operate Studios, has tied up with one of India’s and gain a major share in India’s biggest production houses, Yash Raj burgeoning entertainment pie. No longer Films, to co-produce a series of animated are these players content with a few films for Indian audiences. Though its releases in big cities or with the release of maiden venture, ‘’ (2008) blockbusters dubbed in local languages. did not set the cash box jingling, it has Of late, they have been teaming up with others films lined up, though all are at the Indian directors and actors to produce planning stage. films locally. They are also tying up Warner Bros Pictures is also with production houses and acquiring increasing its exposure to India, despite finished movies. the tepid response that its big-budget “It has been a good move on our part debut film, the Akshay Kumar-starrer, to be present in more than one vertical ‘ to China’ received from like production,” says Kercy Daruwala, the Indian audience. It will now produce managing director, India operations of and distribute three movies with People Pictures Entertainment (SPE). “Acquiring Tree Films. All three – ‘Jaane Kahaa Se

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Aayi Hai’, ‘Basra’ and ‘Chandbhai’ – are The company will also be working on a slated for release this year. co-production with ’s Overbrook Moreover, the company is also looking Entertainment for an animation and action- at tapping into the south Indian film packed Hollywood movie. industry. It has entered into an exclusive In May 2008, UMP announced its multi-picture deal with Ocher Studio, first solo Hollywood film production titled owned by southern superstar Rajnikanth’s ‘Exterminators’. “Over the last few years, daughter Soundarya, for production and we have forged some great working distribution of action-packed south Indian relationships with the leading studios in language films. Another Hollywood major, Fox Studios, a joint venture between Twentieth Century Fox and Star, has not only gained Over the last few access to Bollywood, but also decided to expand its operations to the Tamil film years, we have industry. It has signed an exclusive deal with ‘Ghajini’ director A.R. Murugadoss. forged some Interestingly, Tamil films constitute India’s most popular genre after Bollywood. great working Indian players too are gung-ho on relationships several verticals in the overseas entertain- ment business. There exists huge scope with Hollywood for India’s new breed of filmmakers who are not adhering to the tried-and-tested studios. formula. UTV Motion Pictures (UMP) has been associated with several major Hollywood , studios. Most recently, it has co-produced ceo, UTV Group Indian-American director ’s ‘The Namesake’ and the Chris Rock-starrer, ‘I Hollywood and with top acclaimed inter- think I Love My Wife’ with Fox Searchlight. national talent,” said Ronnie Screwvala, In June last year, it also co-produced ceo, UTV. And this, he says, has led to India-born director M. Night Shyamalan’s some unique projects. ‘The Happening’, a US$57million Another corporate player in the Indian co-production with 20th Century Fox. entertainment business is Reliance Big

The Hollywood - Bollywood mix

OVER the last five years, several films actors international recognition. • The Namesake – Directed by India- that feature Indian and western themes, • Kambakkht Ishq - A recent rom-com born and New York-settled film- and involve the creative efforts of (romantic ), the film has been maker Mira Nair, the film was based directors, producers, actors, technicians cashing in on the guest appearances on a novel by Pulitzer prize-winning and financiers from India, the US and put in by Hollywood stars such as author Jhumpa Lahiri. The film cast the UK have been released. Some such , Brandon Routh a mix of Indian and American actors recent productions are: and Denise Richards. and was co-produced by UTV Motion • Slumdog Millionaire – Despite a British • Marigold – Despite not being able Pictures. Nair is also working on filmmaker (Danny Boyle) at the helm, to set the box office on fire, director the big-budget -starrer it was one of the first international Willard Carroll’s 2007 film holds the Shantaram. films to deploy a largely Indian crew. distinction of being the first to cast • Bride and Prejudice: A romantic A R Rahman, who scored the film’s an American star as the main lead in musical directed by Gurinder Chadha, music, and sound recordist, Resul a Bollywood movie. Indian superstar the film was an Indo-British-American Pookutty, received Oscars for their was cast opposite Ali joint venture. A Bollywood-style work. The film also got its Indian Larter. adaptation of Jane Austen’s Pride

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Global audience: Bollywood films such as Saawariya (above) have had a huge fan following around the world

and Prejudice, the 2004 film featured Films, a leading Indian production house, former Miss World Aishwarya Rai. and . • The Happening: It was written, co- • : Featuring produced and directed by Indian- Akshay Kumar and , this American M. Night Shyamalan. The was Warner Bros Pictures India’s debut US$57 million film was co-produced by film. UTV Motion Pictures. • Singh is King: American rapper • Saawariya: It was the first Hindi film Snoop Dogg donned a turban and rapped to be produced by over the film’s closing credits. The song Entertainment. Directed by Sanjay Leela became a hit with Indians around the Bansali, the US$8.25 million film was the world, and so did the Akshay Kumar first Bollywood movie to be released in action comedy, which became the highest North America by a Hollywood studio. grossing Bollywood film of 2008. The film- • Roadside Romeo: A computer-animated maker, Vipul Shah, has since been signed

film, it was co- produced by Yash Raj Aishwarya Rai in Jodha Akbar on by Fox Star for a multiple-film deal.

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‘We are breaking new barriers and new markets’ Film and entertainment mogul, Ronnie Screwvala, ceo of the US$1 billion UTV Group (by market cap), is among the select few in the world of Indian show-biz to have expanded the company’s geographic boundaries, entering into joint ventures with Hollywood studios, financiers and filmmakers. An interview with Screwvala.

What has been the impact of the economic slowdown on the Indi- an entertainment industry? There has not been much pain, except for a brief, six-month period. I would say this is the right kind of correction. There was too much of equity chasing a fair amount of immature and non-scalable business models, in the hope one can scale them up. As anywhere in a booming economy, everyone thinks what comes first is the top-line, then the business model and then finally the bottom-line. I think the Ronnie Screwvala way it all works up is first comes the reach out to a strong, high net-worth quite small. The movie industry is 120 business model and then the top-line minority. Therefore, the power ratio of years old and still only worth US$1.5 and bottom-line together. what people would be willing to pay to billion, while the television industry – it There has been a fair amount of reach out to this segment is high. really took off in 1992 – is already worth good correction that has happened. The international companies that US$5 billion. We are breaking new barriers and new we have tied up with are very clear that Frankly, for both television and markets. they want local partnerships so we can films, this is the tip of the iceberg. For both grow together. They do not come television and broadcasting about 80 What are the challenges con- here to own companies. per cent and 95 per cent, respectively, fronting the Indian entertain- The whole small-screen market of revenues come from advertising. ment sector? And what are the in India is worth US$5 billion. That Advertising revenues are growing in opportunities? is a combination of revenues of double digits. The biggest challenge is that the broadcasting, cable, and revenues from consumer has to start paying for content TV content. Actually, that is a miniscule What kind of growth do you ex- in India. For almost three decades we amount. About 70 million cable homes pect for the motion picture in- pretty much got everything for free. It’s are paying an average of about US$1.5 dustry in India? not about how many more channels are a month to watch about 300 to 400 Till just about five years ago, there was there (in television) or has the movie channels. They should be paying an just a single genre of films in India. The industry and the box office grown. The average of US$4 to US$6 to watch that director was the producer, who sold big opportunity today is not in creating many channels or even less. his film to a distributor, who had no more demand, but to get the consumer But despite the low rentals, clue how to market the movie. Nobody to start paying. the industry has grown. That is the grew the market. Everybody knew the Foreign films still account for a opportunity in India. It is a cup that is formula – get a superstar and release negligible share of the box office in one-tenth full and nine-tenths empty. the movie. India. Hollywood productions account On the small-screen, the issue is not But all that is changing. Now we for just 5 per cent of India’s box office whether advertising revenues will grow have the studio model, the concept and this has been the case for the last from US$1.1 billion to US$1.4 billion. of marketing, the multiple genres, 20 years. That is quite irrelevant. It is how to raise the increase in infrastructure, the There is not a single English language the average monthly rental from US$1.5 multiplexes and higher ticket pricing, the programme from the West – even the to US$6 or even US$9. advent of home video as an option, the most popular ones – that is in the top-500 The US$5 billion revenues of the TV pay-per-view concept through direct-to- programmes on television. But foreign industry should actually be US$15 billion home (DTH). So, do we see a growth films and television programmes have a – that is the single largest opportunity rate of 40 to 45 per cent per annum for premium factor. There is a fair amount right now. The motion picture industry next five years? Yes. of international fare here because they in India is about US$1.5 billion, which is

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Bollywood blockbusters: International studios are learning to make movies the way Indians do - with local emotions, directors, songs and dance

Global film financing hub THE biggest deal in the Indian entertainment sector was B Entertainment (), Everyman Pictures (Jay Roach), stitched up recently when , chairman, Anil Rat Entertainment (Brett Ratner) and Red Om Films (Julia Dhirubhai Ambani Group (ADAG), formally entered into a Roberts). partnership with ’s Dream Works, providing Timmy Kandhari, head, media and entertainment practice, funding of US$825 million. PricewaterhouseCoopers, believes that India could emerge as Reliance Big Entertainment (RBE), part of ADAG, will a centre for global film financing, with other Hollywood studios provide the initial funding, which would enable Spielberg to also seeking funding from here. make about half-a-dozen films for a global audience. The films would feature Hollywood stars including , and Brad Pitt. Dream Works, which parted ways with Viacom’s in September 2008, has been starved of funds since then. According to Ambani, the joint venture with Dream Works is just the beginning for the entertainment giant. The group would evaluate various options for funding the joint venture. RBE also has plans to produce films jointly with other Hollywood production firms, including Saturn Productions (owned by ), JC 23 Entertainment (), Smokehouse Productions (George Clooney), 1492 Pictures (Chris Columbus), Productions (Tm Hanks), Plan Steven Spielberg and Stacey Snider, his business partner, with Anil Ambani

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Entertainment (RBE), which has expanded its international operations across different media and entertainment verticals. The company introduced its innovative devel- opment and production financing deals, ‘Creative Partnerships’, and has signed more than 20 individual projects with the production companies of various actors, including Brad Pitt, George Clooney, , Nicolas Cage, Jim Carrey and Julia Roberts. RBE also owns 165 screens in the US across a circuit that accounts for 20-35 per cent of the box office collections of Hindi feature films and over 65 per cent of collections of Tamil films in the US. The company has also entered into a deal with Steven Spielberg to start a studio. The Anil Dhirubhai Ambani Group (ADAG) firm considers these overseas deals to be the first step in the creation of a virtual studio and a new-generation media company. “Hollywood is the biggest market and an attractive one for us,” explains , chairman, RBE. “Our investments there are simply a part of our long-term business proposition.” Pritish Nandy Communications (PNC) Cinema, cinema: It is the biggest form of entertainment in India with stars having a huge fan following has recently inked a deal with London- based High Point Media Group to theatre releases of Hollywood films or years. Over the next five years, the distribute and promote all the five films even those that are dubbed into more than industry is projected to grow at a CAGR of it will release in the international market one local language did not really work. The over 9 per cent and reach a size of US$3.5 this year. revenue earned from these releases has billion by 2013, according to a study by Traditionally, most American movies barely been enough to recover the costs PricewaterhouseCoopers. are first premiered in the US. However, in of marketing and distribution of the film Much of this growth is expected as a first, Sony Pictures held the premier of in India. a result of the expansion of multiplex its 2008 release, ‘Quantum International studios had to accept the screens in tier II cities, enhanced penetra- of Solace’, in India, a strong indication of fact that local entertainment still rules in tion of home video and an increase in the India’s growing stature in the global enter- India. “Hollywood studios have realised number of TV channels, all of which are tainment business. the only way to make a dent in the Indian expected to fuel demand for film content. Earlier this year, The Motion Picture market is by making movies the way the “Such growth, coupled with the Association of America (MPAA) opened an Indians do – with local directors, emotions, emergence of vertically integrated office in Mumbai. “Hollywood continues song and dance”, says Farokh T Balsara, studios, is incredibly attractive to foreign to keep a close watch on the Indian media partner and national sector leader, media investors,” says Dalal of the MPDA-I. and entertainment space”, remarks Rajiv P. and entertainment, Ernst & Young. “Investors also recognise increased Dalal, managing director, Motion Picture Cinema is the biggest form of enter- returns from Indian entertainment Distribution Association, India (MPDA-I), the tainment in India. According to industry companies, now that Indian producers Indian arm of the MPAA. “Our studios and estimates, about 14 million people have moved beyond traditional box office parent companies will certainly examine visit cinemas every day in the country. revenue, and have embraced revenue any profitable opportunity that arises.” The industry has been growing at a streams such as television, mobile, According to film analysts, the major compounded annual growth rate (CAGR) Internet, home video, merchandise and shift in strategy happened because of almost 18 per cent over the last three music.”

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Hollywood studios have realised the only way to make a dent in India is by making movies the way Indians do.

Farokh Balsara, partner, Ernst & Young

Riding high on the opportunities, studios both in Hollywood and Bollywood have not let the global recession dampen their enthusiasm. Says Dalal: “Historically, during economic downturns, movie sales remain constant because it is an afford- Racing ahead: The Indian entertainment industry is expected to grow at a CAGR of over 9 per cent in the next four years able form of entertainment that provides enjoyment and escape from reality.” On an average, Bollywood churns differentiate the products”, says SPE’s But even as they go ahead with their out over 800 films a year. Today the film- Kercy Daruwala. aggressive plans, studios and produc- making process has become more profes- For years, Bollywood’s charisma has tion houses are taking measured steps sional with corporates stepping in. The had a devoted fan following among the by evaluating their financials. “This will industry is also moving towards adopting Asian diaspora settled around the globe. ensure that the absurd budgets of the western norms, where theatrical revenue In the UK, Indian movies have been past will now get scaled down,” says is only one-third or half of the overall regularly making it to the box office top-10 Khanna of RBE. revenue of the movie. rankings. In the US, stage shows with The growing interaction between Los The move has cut down Bollywood’s Bollywood themes (and ) have Angeles – the US entertainment capital reliance on box-office collections. These always been a hit with Asian-Americans. – and Mumbai, its Indian counterpart, is are now down to 55-60 per cent from the Indian film production units are being benefitting both showbiz hubs. Bollywood 90 per cent about five years earlier, with provided subsidies and incentives to shoot is getting more professional in terms of the rest comprising revenues from the movies abroad. An attractive proposition, its work practices, systems and movie- sale of music rights, satellite TV rights and Indian producers have begun scouting for making capabilities. Hollywood, of course, merchandising. foreign themes, locations and even local can do with much of the funding that is The studios have also welcomed the cast and crew as part of the script. available in India’s financial capital and digitisation of films, which means that Traditionally, Bollywood and Holly- also the growing market for the ‘dream- with the help of cost-effective technolo- wood productions have been as different works’ churned out by it. gies, a movie can now be released simul- as chalk and cheese. However, Bollywood One thing is certain: the close encoun- taneously across different geographies. movies, many running for almost three ters between two of the world’s biggest This has not only lowered print costs hours with their song and dance routines, entertainment markets will continue to to nil, but also minimised the scope for are increasingly receiving wider accept- see many more joint productions and piracy, thereby increasing the revenues of ability if the success of films like Monsoon movies with common themes that would producers. Wedding and Bend it Like Beckham is attract a global audience and also set the “Soon it will be technology that will any indication. cash registers ringing at the box office.

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