In the last 2-3 years, the Indian Film Industry had got a new aspirational goal – 100 Crores. Suddenly 100 crores was the new benchmark of success. With each passing year, the number of films in the 100 crore club grew. And it will continue to grow. The rationale is simple.
India’s population is more than 100 crores. Even if 2% of Indian population watches a movie, it is 2 crore people watching a movie. Multiply it by the average lowest price of Rs 50, and we have 100 crores !
Movies were always popular in India and hit movies made good money. A few important changes have happened in the Indian Film Industry and that has contributed to the 100 crore movies:
1. The revenue leakages are getting reduced due to multiplexes and digital technologies.
2. Multiplexes have increased the number of screens. They have also increased the ticket prices and hence the yield.
3. Strong marketing strategies ensure carpet bombing of the movie. Maximum people watch movie within 2 weeks.
4. Modern management has ensured a good template for the success of a big size movie.
Inspite of the above facts, India has less number of per capita screens. The movie watching audience will continue to swell and we will soon move to new benchmarks. In fact, 200 crore is the new 100 crore with three movies already clocking more than 200 crores in 2013. The day is not far when 500 crore will not be an impossible feat in Bollywood.
Indian Film Industry is bullish in outlook. The only challenge is to ensure high quality content with global best practices. It can then make a bigger dent in the global entertainment order !
Kandarp
Also mass release due to a bigger number of multiplexes is also a big factor. Only a few years ago even a release of about 1000 prints wasn’t that common, while Chennai Exp. and Dhoom 3 were released across 4000 prints. Another interesting revenue stream you missed here is that of paid previews. Chennai Express earned about Rs. 6 crores through paid previews while Once Upon a Time in mumbai dobara earned almost Rs.11 crores through paid previews.
With all these revenue related innovations, 500 Crores shouldn’t be impossible.
However I wonder what do you mean by ‘modern management’?
admin
Yes Kandarp. That is right. The number of prints is a big factor. That is what we mean by Carpet Bombing. Paid Previews are an important source. Also ticket prices are higher. For Dhoom 3 – IMAX Ticket was nearly 900 Rs.
The number of multiplexes will continue to increase. More screens in Tier II and Tier III towns. ‘Event’ movies will earn more.
Modern Management is a big topic. But lot of new initiatives in marketing, finance and technology are due to practices introduced by new breed of managers. We can talk about Modern Management at length. Over some Spanish Churros and Coffee !
Vaibhavi
The First Poster of Movie is already Out! Which gives it a Year Long to Market them self. and the feeling of what next? is already there in people. The movie already have verified twitter profile to tap on Social Media! Aslo a lot of festivals to come they can do song release the way YJHD promoted Hoil song and Ramleela: Nagada sang dhol! This is going to be an interesting Promotion and looking at all this 500cr looks like an achievable target!
Mehul
With the multiplex footprint and crazy opening week ticket pricing and tactical marketing the 500 crore club will be formed. But I believe if Bollywood show some originality in their content to push the limits then this can be achieved and sustained better. When I see Krrish or Krishh or whatever 3, i wonder instead relying on numerology and making a cheap copy of X-Men they should have shown originality in script and better quality effects. In India or wherever, the millennials are the prime force to make or break a movie and these millennials have seen the best of cinema and production houses should have them in mind to make that next gen record breaking movie. I think Ra-One was a better attempt at special effects but the script wasn’t convincing and dramatic enough.