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DIBD 25. 9. 12

The Indian Film Industry DIBD India

Introduction to the Indian Bollywood Industry •Current market situation •Revenue distribution •Product placement: Bollywood Industry •Celebrity endorsements, management and brand ambassadors

DIBD India

Current Market Situation • Bollywood is the most known film producer in India, and therefore the name is often used to describe the whole film industry in India, even though the industry is divided into many regional areas. The Bollywood production takes place in Mumbai (previously called Bombay), hence the name Bollywood. The name also reflects Americans counterpart – Hollywood. • Bollywood is the largest film producer in the world. They produce roughly 1000 movies a year. Hollywood produces 500 and Japan produces 400 movies a year. • The Bollywood industry had a revenue of USD $3 BN in 2011, and has been growing at approx. 10,1% a year. The revenue is expected to reach USD $4.5 BN by 2016. DIBD India

Current Market Situation

• Bollywood films are not only watched by people in India, also neighboring countries Pakistan, Bangladesh, Nepal, Pakistan, Sri Lanka watch the movies. Countries with large groups of Hindi and Urdu speaking nationalities like Australia, UK, Africa and the US have many Bollywood enthusiasts. Old trading partners like Russia and Japan are also buyers of Bollywood productions. • Revenue generated from the ticket sales is only a small portion of the industry. • Celebrity endorsements and management have long been the major profit base for the industry as well as product placement, which is increasingly popular to integrate into the movies.

DIBD India

Revenue growth

4

3,5

3

2,5

Revenue in US$ bn 2

1,5

1

0,5

0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 DIBD India

Sources of Revenue

Film Industry Revenue in Percent (%) Domestic Theatrical 74,0 Overseas Theatrical 7,0 Home Video 3,0 Cable and Satellite Rights 11,0 Ancillary Revenue Streams 5,0 Total 100 DIBD India Key Drivers

• Growing middle class income - 300 million • High return on investment • Low costs of production • Many Indians living abroad • Increased importance of regional cinema • Increased demand for multiplex theaters • Indirect profits from product placements, celebrity endorsement etc • Favorable demographic changes

• Higher quality and awareness of the films produced: • ‘Slumdog Millionaire’; an International production has created a synergy to Bollywood • ‘Ra.One’ released in 2011; Price USD $30 million - most expensive Bollywood production • ‘Peepli Live’; nominated at the Sundance Film festival 2010 and nominated for the 2011 Oscar ‘Best Foreign Language Film’

DIBD India

Bollywood Actors & Actresses in Hollywood and Vice-Versa

• Bollywood and it’s A-list actors have the same status in India as royalty, presidents, and film and rock stars have in the West • Bollywood and Hollywood are opening up to each other

• Bollywood -> Hollywood • Anil Kapoor in ‘Slum Dog Millionaire’ and later in ’24’ • in ’Pink Panther 2’ with and ‘’ with

• Hollywood -> Bollywood • Ben Kingsley in Teen Patti (Three Cards) • in ‘Kambakht Ishq’ • Jennifer Chambers directed ‘Hiss’ DIBD India

Bollywood Company Collaborations

• Reliance Big Entertainment signed a deal worth USD $1.2 BN with ’s Dream Works SKG to produce 36 films for the next 6 years. • Reliance also acquired around 200 theatres in 28 locations in North America to screen Bollywood and other regional movies from India. • Walt Disney has invested around USD $324 million in a deal with Yash Raj Films. • Entertainment has collaborated with Warner Bros. • Warner Bros has also signed a three movie deal with People Tree Films and a one film tie up with Tandav Films

DIBD India

Product Placement in Bollywood Movies

• Within the last ten years Bollywood has become more international and begun to focus much more on targeting the global audience and environment. • Bollywood has realized the necessity to create an ambience and environment in the movies, so the movies can target both the Indian culture as well as a more international culture overseas. • Many younger Indians in India and elsewhere are very aware of the Western culture, therefore Bollywood tries to catch this attention with product placement of Western products in the movies. DIBD India

Product Placement in Bollywood Movies

• Audi Q7, Mercedes, Toyota, Kawasaki • Starbucks • Exhide • Tag Heuer • Maybelline cosmetics • MTV Music Television, ESPN Sports Network • Coca Cola, Pepsi • Sony, Nikon • Pizza Hut • Calvin Klein • Goodyear • Castol • Etc Businesses are also ‘placed´ • www.Bharatmatrimony.com matrimonial partner search

DIBD India

Endorsement, Management and Ambassadors

Aishwarya rai bachchan – L’Oreal Priyanka Chopra - Vera Moda – Tag Heuer Shah Rukh Khan- Hyundai

Priyanka Chopra - LEVIS Sachin Tendulkar – Sachin Tendulkar – Mahendra Singh Dhoni – Adidas Royal Bank of Scotland Reebok

• Celebrity endorsement is not restricted to Bollywood, but highly used for anybody who makes India stand out; cricket players and other sports stars •It is not rare that a brand ambassador is also endorsing a wide range of other diverse products •Celebrity management is not only commercial functions but does also include celebrities being present at private weddings, birthdays etc. – all functions has different rates DIBD India

Want to know more...

Want to get more hands-on knowledge about the growing market opportunities for Danish companies in the huge yet complex Indian market... DIBD offers two points-of-contacts:

Anders Kjøller • Anders works as Manager with focus on Asian markets in DI. He has over 10 years of Manager, project experience from projects in Asia. DI Copenhagen • Anders has over 4 years of hands-on experience in the field from the Chinese market gained as Director of DI’s office in Shanghai (2007-11). • Experience from several projects within the marine, food and utility industries E: [email protected] amongst others with business development, market studies, implementation of P: (+45) 33 77 37 72 market entry strategies as well as implementation of distributor management. M: (+45) 26 20 45 60 • Anders has a M.Sc. Economics & M.A. East Asian Studies.

Kunal Singla • As the director of DIBD’s office in Mumbai, Indian-Danish Kunal is the man on the Director, ground in India. DI India • Kunal has substantial hands-on experience with various projects (including partnership searches etc.) and recruitment in India. • Kunal also has previous experience from the Commercial Department at the Royal E: [email protected] Danish Embassy in New Delhi, and DI’s Business Law department in Copenhagen. P: (+45) 33 77 45 25 • Kunal is fluent in Danish, English and the Indian national language Hindi, and has an M: (+91) 99 30 56 27 61 extensive network in the Indian business community. • Kunal holds a M.Sc. in Business Administration and Commercial Law from Copenhagen Business School, and has studied in the United States and China.