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Can the Philippine Film Industry Follow Bollywood?

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Can the Philippine Film Industry Follow Bollywood? P HILIPPINE I NSTITUTE FOR D EVELOPMENT DEVELOPMENT S TUDIES Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas RESEARCH NEWS Vol. XXIV No. 3 May-June 2006 ISSN 0115-9097 Editor’s Notes Can the Philippine The film industry—informally called showbiz (a play on film industry follow the words show and business)—is an inescapable part of the everyday lives of most Filipinos. This industry or the motion picture sector is part of the audio visual services sector along with television, radio, and other Bollywood? entertainment activities. This particular issue of the DRN focuses on the Philippine film industry. he term Bollywood conjures images of Indian men and women There has been a lot of exciting developments in film wearing mostly traditional Indian garb and acting in song-and- production technology but it remains to be seen if the dance movies about love. Bollywood may be cheeky, obviously a local film industry can and will adapt to these changes. T pun on the term Hollywood, but it has gained respect as it con- The faster it does, the sooner it can recover from its notes the successful film industry of India that has become one of the larg- currently near-death state. This is tackled in the study est in the world in terms of film production and admissions. Bollywood’s of Dr. Gloria Pasadilla and Ms. Angelina Lantin titled current worth of US$1.2 billion may be “peanuts” compared to Hollywood Audiovisual services sector: can the Philippines follow earnings but industry players are expecting a growth rate of 18 percent Bollywood? The study dissects the Philippine film in- compounded annually for the next five years. The return on investment dustry and compares it with India’s Bollywood and other for Indian films is also high due to low production cost and high revenues. In 2004 alone, five Bollywood releases generated more than US$2 million Asian countries’ more successful film industries. Point- each in the United Kingdom (UK) and the United States (US). ing out the strengths, weaknesses of, and threats to the local film industry, the authors wonder if it can soar Can the Philippines be another Bollywood? Can it follow the relative suc- to the heights of Bollywood. cess of India and other countries such as China, Korea, and Japan in pen- etrating the global audiovisual services (AVS) market? What would it take Renowned film director, actress and former chair of to achieve Bollywood status? These are some of the questions posed by the Film Development Council of the Philippines PIDS Senior Research Fellow Dr. Gloria Pasadilla and her associate Ms. (FDCP) Miss Laurice Guillen responds with an inci- Angelina Lantin in their paper titled Audiovisual services sector: can the Phil- sive and enlightening discourse on the state of the ippines follow Bollywood? The study looks at the strengths and weaknesses of the Philippine AVS sector, especially the film and television industries. It +12 also evaluates the sector’s contribution to the economy, the factors that influence and move the sector’s principal players, and the technological advances that are changing the way films, TV shows, music, and other au- diovisual products are being delivered and used. What’s inside The entire AVS sector includes motion picture, radio, TV and other enter- tainment activities, and recording or taping of sound. This article particu- 5 Study underscores government’s role larly focuses on the Philippine film industry, its strengths and weaknesses, in improving TV and film industries the challenges and opportunities it faces, and how the industry and gov- 6 Ms. Laurice talks about the Philippine film industry ernment can work together to help it cope with these challenges and be- 10 Call center: a sunrise industry? come a stronger industry that may one day be another Bollywood. DEVELOPMENT RESEARCH NEWS 2 May - June 2006 The principal The Philippine film industry What about foreign films? They have their own What it consists of distribution system namely, Buena Vista Pictures strength of the Phil- At first glance, the Philippine film industry con- Distribution, Sony Pictures Entertainment, sists of actors, actresses, directors, producers, Metro-Goldwyn-Mayer Studios, Paramount Pic- ippine film industry th scriptwriters, and other people who are “visible” tures Corporation, 20 Century Fox Corporation is the abundant tal- or in the frontlines. But the movie industry is Universal City Studios LLLP, and Warner Bros. more than that. It is organized along sectoral and Entertainment. Certainly, the foreign distributors ent of Filipino artists guild interests. There are guilds for producers, have the edge over the local ones in that they which has been artists, directors, other creative talents, and crafts- have access to different markets worldwide, es- men. All of these guilds are under the Film Acad- pecially in the US. They also have more funds to widely recognized emy of the Philippines (FAP). In addition to FAP, market and promote their films, and have built a around the world. there is the Film Development Council of the reputation as effective distributors. Furthermore, Philippines (FDCP), which aims to uplift filmmak- because of the size and portfolio of their film of- Over the years, sev- ing by giving incentives and awards to well-made ferings, the foreign distributors dominate the ma- eral films have re- films. Its Cinema Evaluation Board gives either jority of screens in the country, leaving only a an A or B to a film that would entitle it to tax handful of screens to local distributors. ceived many awards rebates of up to 100 percent. Last in line in the flow of business in the film indus- from various film Behind these well-known people in the creative try are the exhibitors. These are the firms respon- festivals in different department are the players who largely make the sible for showing the movies in theaters that are moves that turn the wheel of the industry. These mostly located in Metro Manila. Out of the 373 countries. are the producers, distributors and exhibitors. screens in the country, 215 (57.6%) are in Metro Their roles are interdependent with one another. Manila. Producers make the film by arranging the finances, Contribution to the economy casting and technical arrangements. They create With entertainment such a big part of Filipinos’ films that they feel will suit the tastes of the view- lives and with moviemaking a rich part of the ers. Some of the well-known producers are Regal country’s history, the study also looks at the eco- Entertainment, Viva Films, Star Cinema, Seiko nomic value of the local film industry in terms of its Films, Solar Films, and OctoArts Films. contribution to the national coffers. Figures show that the local film industry is not yet a significant When the movie is finished, the producers then contributor to the economy. The industry’s P8.7 sell it to distributors who are responsible for mar- billion gross value added (GVA) in 1998 translates keting the film. They make promotional and ad- to a measly 0.98 percent share in the gross domes- vertising activities through mass media. In the tic product (GDP) and only 0.94 percent in the Philippines, the major local distributors are also gross national product (GNP). The same holds true the production companies. Thus, they distribute in terms of employment: data in 1994 revealed that their own movies in the local market. 15,517 individuals (excluding actors and actresses) made a living under the sector, which represented 0.06 percent only of the total labor force in the country. But these figures may change significantly in the near future: first, the industry’s GVA of 18.12 percent indicates a bullish growth compared to the GDP growth of 15.99 percent; and second, its total employment growth is impressive at 13.81 percent. Industry performance Using a SWOT (strength, weaknesses, opportu- nities, threats) analysis, the study looks at the per- formance of the film industry and how it could rise from its present slump and go on to succeed and become another Bollywood. National Geographic Feb. 2005 DEVELOPMENT RESEARCH NEWS 3 May - June 2006 Strengths The principal strength of the Philippine film in- Jollywood? dustry is the abundant talent of Filipino artists that has been widely recognized around the RP film products find overseas markets. world. Over the years, several films have received many awards from various film festivals in differ- A news article in the February 3, 2005 issue of the Philippine Daily In- ent countries. The study lists 25 local films that quirer reported that GMA-7’s “Mulawin” will be translated to Bahasa In- were internationally recognized, the earliest of donesia and will be shown in that country in March 2005. GMA-7 execu- which was shown in 1957. Of late, Magnifico, a tives also revealed that the network likewise reached an agreement with film directed by Maryo J. delos Reyes in 2003 a Cambodian TV network in June 2005 and the same television series about a boy who unexpectedly tries to help his had been translated in Khmer and had begun airing last September. family survive their hardships through his com- Plans are under way to syndicate other programs for distribution in South- passion, conviction, and courage, had won as best east Asian countries. feature film at the 2003 Hawaii International Film Festival and at the 27th Kinderfilmfest of the 2003 In the same news article, it was reported that former President Fidel Berlin Film Festival. Locally, it won the FAMAS Ramos led a Philippine delegation that went to Calcutta, India last Janu- and PMPC Star Awards for Best Picture.
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