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Karmayogi

More details on Indian cinema

Cinema has raised India's flag high in the world for being the consistently largest film producer in the world.

The Andersen strategy report prepared for the Federation of Indian Chambers of Commerce and Industry (FICCI) said "In the last decade, the entertainment industry has recorded an exponential growth and is now valued at Rs 154 billion ($3.54 billion) and is expected to grow to approximately Rs 600-700 billion in the next five to seven years,”.

India's movie industry employs 2.5 million people and produces approximately 1000 movies at an average cost of $1.4 million every year, the report said. It has been listed by the Guinness Book of World Records as producer of the largest number of movies in the world.

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The Andersen report said the music market was expected to reach $512 million by ’05 from $292 million at present and the share of ad spending on TV as a proportion of total advertising expenditure would reach nearly 50 per cent in ’05 from around 36 per cent at present.

Indian film exports are expected to touch around Rs 14,700 crore ($3.4 billion) by ’05, from around Rs 1550 crore in ’00, the Andersen report said. Overall entertainment exports are estimated to touch 2,00,00 crore by ’05 from around 2,000 crore at present.

Cable TV, which was negligible in ’90, reached 24 million households in ’99, and ireached 64 million homes by the end of 2004. There are now over 100 cable channels. Doordarshan, which has 19 channels, including 14 regional and three international channels, reaches 68 million homes and is expected to cover 116 million by the end of 2005.

The National Council of Applied Economic Research estimates the total number of Indian households in excess of 157 million. Cable TV accounts for advertising revenue of between $58 and $70 million, out of a total television ad spending of $502 million. Andersen said potential existed in television programming, broadcasting, movies, radio, music and live events. Madras-based Pentamedia Graphics is emerging as a strong global player in animation movies. Centres like Hyderabad's "Film City” are said to aid cheap production.

While these provide technological and economic foundations, India's movie industry is also confident of its talents. Movie-makers like Shekhar Kapur, who directed the much-acclaimed "Elizabeth” in Hollywood, and the Oscar nominations won by "Sixth Sense”, directed by Indian-born Manoj "Night” Shyamalan, are counted among inspirations. These directors, by becoming the first big successes in mainstream Hollywood cinema, have shown that Indians have graduated from niche films into lucrative ventures. — Reuters

Fast Facts:
- Indian film exports are expected to touch around Rs 14,700 crore ($3.4 billion) by 2005, from around Rs 1550 crore in 2000.

- Total entertainment exports are estimated to touch Rs. 20,000 crore by 2005 from around Rs. 2,000 crore at present.

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