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ORMAX MEDIA BOX OFFICE REPORT 2019 Executive Summary (1/3)

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ORMAX MEDIA BOX OFFICE REPORT 2019 Executive Summary (1/3) • Total Gross BO in India crossed the ` 10,000 Cr mark in 2019 for the first time. Total Gross BO across languages in 2019 is ` 10,948 Cr, i.e., 11.6% growth over the previous year • Because of reduction in GST slabs from 28% & 18% to 18% & 12% respectively, Nett BO has grown even higher at 18.7%, and stands at ` 9,490 Cr in 2019 • Hollywood showed astounding growth in Gross BO (30.5%), touching an all-time high of ` 1,595 Cr (across languages) in 2019, beating Tamil & Telugu to become the no. 2 industry in terms of contribution after Hindi • However, because of lower ticket rates, Tamil and Telugu are higher in terms of their footfalls contribution, contributing 19% and 18% respectively, vis-à-vis Hollywood’s 9% footfalls contribution Executive Summary (2/3) • Besides Hollywood, the other industries that showed a growth in BO in 2019 are Kannada (36%), Malayalam (17%), Tamil (14%), Punjabi (13%) and Hindi (10%) • Marathi (-45%) and Bengali (-33%), however, showed de-growth in 2019 • Total footfalls across languages in 2019 crossed the 100 Cr mark, growing by 8.9% over the previous year. 103.0 Cr theatre seats were filled in India in 2019 • The Average Ticket Price (ATP) for 2019 was 106, a mere ` 2 increase over 2018. Inflationary growth in ATP was offset by reduction is GST slabs Executive Summary (3/3) • The first weekend (Day 1-3) contributed 39% to the total BO in 2019, 1% lower than the previous year. Telugu industry had the higher dependence on the first weekend, at 46% • Hindi cinema’s dependence on the first weekend has reduced to a decade-low of 37%, because of stronger content leading to higher sustenance • Based on cumulative business across languages, four films crossed the ` 300 Cr Gross BO in 2019, i.e., Avengers: Endgame (` 433 Cr), War (` 357 Cr), Saaho (` 349 Cr) and Kabir Singh (` 321 Cr) Total Gross Domestic Box Office (All Languages) 11.6% ` 9,810 Cr ` 10,948 Cr 2018 2019 Language-wise Share of Gross Domestic Box Office (2019) Hindi 44% Marathi + Bengali + Gujarati + Others 3% Punjabi 2% Kannada Hollywood* 5% 15% Malayalam 5% Telugu Tamil 13% 13% *Hollywood includes all language versions Language-Wise Growth (2019 vs. 2018) Language 2018 Gross 2019 Gross Growth % Language 2018 Gross 2019 Gross Growth % Hindi 4,392 4,831 10 Punjabi 220 249 13 Hollywood* 1,222 1,595 31 Marathi 203 111 -45 Tamil 1,283 1,460 14 Bengali 93 62 -33 Telugu 1,384 1,404 1 Gujarati 60 62 3 Malayalam 515 604 17 Others 55 48 -13 Kannada 383 522 36 *Hollywood BO includes all language versions All Gross figures in ` Cr Average Ticket Price by Language (`) in 2019 180 163 150 142 120 96 95 93 90 78 77 75 74 72 69 60 30 0 Hollywood* Hindi Punjabi Bengali Marathi Gujarati Telugu Tamil Malayalam Kannada Others *Hollywood includes all language versions Total Domestic Footfalls (All Languages) 94.5 Cr 103.0 Cr 8.9% 2018 2019 Language-wise Share of Domestic Footfalls (2019) Hindi 33% Marathi + Bengali + Gujarati + Others 3% Punjabi Tamil 3% 19% Kannada 7% Malayalam 8% Telugu 18% Hollywood* *Hollywood includes all language versions 9% % Contribution of the First Weekend (Day 1-3) 60 46 41 41 38 37 40 37 36 35 33 31 20 17 0 Telugu Hollywood* Tamil Kannada Hindi Malayalam Punjabi Marathi Bengali Others Gujarati *Hollywood includes all language versions Top 10 Films (Gross Domestic Box Office: All Languages) Avengers: Endgame 433 War 357 Saaho 349 Kabir Singh 321 Uri 283 Housefull 4 239 Good Newwz 230 Bharat 229 Mission Mangal 224 Sye Raa 196 The Lion King 184 0 90 180 270 360 450 Gross Domestic BO in ` Cr (Collections of all language versions added for each film, wherever applicable) HINDI FILMS Gross Domestic Box Office of Hindi films grows at 10.0%, the best growth rate since 2013 5,000 4,831 4,392 4,064 Cr) 3,881 4,000 3,752 3,804 3,810 ` 3,245 3,000 2,386 2,000 Gross Domestic Box Office ( 1,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 Because of reduction in GST rates in 2019, Nett BO business shows higher (18.2%) growth than Gross BO 4,500 4,154 4,000 Cr) 3,514 3,500 ` 3,035 3,000 2,718 2,745 2,727 2,780 2,500 2,332 2,000 1,719 1,500 NettDomestic Box Office ( 1,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 The reduction in GST slabs for cinema tickets in 2019 is balanced by the inflationary growth in ticket rates, leading to no major shift in ATP 150 142 139 135 132 127 125 120 (`) 113 105 100 97 Price Price AverageTicket 75 2011 2012 2013 2014 2015 2016 2017 2018 2019 At 34.1 Cr, Hindi theatrical footfalls have beaten the peak 2013 level in 2019, showing 7.9% growth over 2018 36 34.1 33.2 31.7 31.6 30.9 30.0 30.1 30 29.4 24.6 24 Domestic 18 Footfalls (Cr) 12 2011 2012 2013 2014 2015 2016 2017 2018 2019 The contribution from the top 20 films remains 78%. However, the second line (no. 11-20) is stronger than ever before, contributing 29%, vis-à-vis the previous high of 24% 100 75 21 24 24 23 22 24 24 24 29 50 62 25 52 53 54 54 53 54 54 49 % Contribution % of Top 20 Films 20 Top of 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 Top 10 Top 11-20 With stronger content, the last two years have seen lesser dependence on the opening weekend 60 40 32 31 32 34 34 34 32 28 25 20 13 13 14 13 13 13 13 12 12 0 % Contribution of Contribution % 2011 2012 2013 2014 2015 2016 2017 2018 2019 theFirst Weekend Day 1 Day 2-3 Top 10 Films Gross Domestic Box Office: 2019 War 340 Kabir Singh 321 Uri 283 Housefull 4 239 Good Newwz 230 Bharat 229 Mission Mangal 224 Kesari 176 Total Dhamaal 174 Saaho 173 Chhichhore 172 50 100 150 200 250 300 350 Gross Domestic BO in ` Cr (Hindi language version only) HOLLYWOOD FILMS Huge 30.5% growth ensures that Hollywood box office crosses the ` 1,500 Cr Gross mark in 2019. Only ` 127 Cr of the ` 373 Cr growth comes from Avengers: Endgame (vis-à-vis Avengers: Infinity War) 1,700 1,595 1,500 Cr) 1,300 1,222 ` 1,117 1,065 1,100 917 900 700 648 525 Gross India 500 Box Office ( 300 2013 2014 2015 2016 2017 2018 2019 Gross India BO in ` Cr (all languages) With a favourable tax structure supporting growth via content, Nett Box Office grows by an astounding 40.6% in 2019 1,400 1,357 Cr) 1,050 965 ` 795 801 700 661 453 375 350 NettIndia Box Office ( 0 2013 2014 2015 2016 2017 2018 2019 Nett India BO in ` Cr (all languages) With 3D films dominating the list of top grossers, 2019 sees a ` 10 increase in ATP despite lower GST rates 170 163 160 153 150 145 141 142 (`) 140 135 130 128 120 Price Price 110 AverageTicket 100 2013 2014 2015 2016 2017 2018 2019 All languages Hollywood footfalls near the 10 Cr mark in 2019, and have more than doubled since 2014 12 9.8 10 7.7 8.0 8 7.5 6.5 6 4.8 4.1 4 2 0 India Footfalls (Cr) 2013 2014 2015 2016 2017 2018 2019 All languages The contribution of the top 10 films remains very high at 76%, indicating that Hollywood’s growth is driven by big- ticket event films, than because of a stronger long-tail 100 13 12 10 75 18 20 15 23 50 74 78 76 67 64 66 60 25 Top 20 Films 20 Top 0 % Contribution of Contribution % 2013 2014 2015 2016 2017 2018 2019 Top 10 Top 11-20 Top 10 Films Gross India Box Office: 2019 Avengers: Endgame 433 The Lion King 184 Spider-Man: Far From Home 104 Captain Marvel 101 Fast & Furious Presents: Hobbs & Shaw 96 Joker 83 Jumanji: The Next Level 70 Aladdin 64 Frozen 2 51 Annabelle Comes Home 32 0 90 180 270 360 450 Gross India BO in ` Cr (all languages) TAMIL FILMS Tamil Box Office witnesses a healthy 13.8% growth in 2019 1,600 1,460 1,283 1,211 1,191 Cr) 1,200 1,120 ` 996 932 800 400 Gross Domestic Box Office ( 0 2013 2014 2015 2016 2017 2018 2019 Gross Domestic BO in ` Cr (Tamil language versions of all films except Hollywood films) With GST changes cancelling out nominal inflationary ATP growth, no significant change is observed in ticket rates 80 76 75 73 71 70 67 (`) 66 65 60 Price Price AverageTicket 50 2013 2014 2015 2016 2017 2018 2019 With an encouraging 15.5% growth, Footfalls beat the 2015 high of 18.1 Cr 20 19.4 18.1 17.2 16.3 16.8 15 14.1 14.0 10 5 Domestic Footfalls (Cr) 0 2013 2014 2015 2016 2017 2018 2019 Tamil language versions of all films except Hollywood films Top 10 Films Gross Domestic Box Office: 2019 Viswasam 149 Bigil 145 Petta 139 Ner Konda Paarvai 102 Kanchana 3 74 Kaappaan 69 NGK 65 Namma Veettu Pillai 58 Kaithi 55 Asuran 48 0 25 50 75 100 125 150 175 Gross Domestic BO in ` Cr (Tamil language version only) TELUGU FILMS Stagnant box office, with only 1.4% growth over the previous year.
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