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The Indian film market ranks as the largest theatrical market in the world, with over three billion total admissions in 2007 (close to 50% of global admissions). The number of multiplex screens is expected to increase from 193 in 2006 to 907 in 2011. Digital cinema development has reached close to 1,000 screens.
The Indian film industry is projected to grow to US$3.6 billion in 2012, nearly double its present size. Cumulatively over the next five years, domestic box office is expected to grow at 11%, overseas collections at 19%, and home video at 15%.
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Starring two of Bollywood’s biggest stars; Salman Khan and Rani Mukherjee and directed by Sanjay Leela Bhansali, Saawariya marked the first major production by a Hollywood studio fully filmed in India.
Despite opening to adverse reviews the film grossed US$18 million worldwide in 2008 and started the trend of Hollywood producing in India.
Sony Pictures Entertainment (SPE) Films India has just announced that it is ready to release as many as 15 movies this year comprising of Hindi, English as well as animation.
In late 2006, UTV announced a $30 million co-production agreement with actor/producer WillSmith and his production company Overbrook Entertainment and Sony Pictures Entertainment. worldwide. Both the films star Will Smith.
Production began on January 21, 2008 in India and moved to Shanghai later in the year to film the scenes from China. It is believed to be the first Indian production shot in China.
Warner Bros. Pictures released Chandni Chowk to China on January 16, 2009. The film opened on more than 125 screens in over 50 markets, making it the largest ever release of any Bollywood film in the United States and Canada. The film was also released in 40 international markets.
In December 2008, Warner Bros. Pictures signed a three-picture production and distribution deal with Mukesh Talreja and Nikhil Advani's People Tree Films.
In May 2008, Viacom unveiled a joint venture with the Network-18 group to create Viacom 18. While the deal initially focuses on small screen ventures, part of the pact sees Viacom became an equal partner in the Indian Film Company.
The Indian Film Company is the first publicly listed film company specifically created to invest in Indian films and films primarily targeted at the Indian audiences. The production company has green lit development and production of 22 movies with start dates scheduled over the coming 18 months.
Paramount is also looking to begin investing in co-productions and has been in talks with large studios such as Yash Raj Films since 2006. Tom Freston, President & CEO of Viacom, has described India as “among the three most exciting markets in the world, it would not be incorrect to say the top market in Asia.”
Walt Disney Studios with Yash Raj Films and utilized state-of-the-art computer animation. The technology was done entirely in India. The film features music, dances, songs and romance just like any other Yash Raj Film.
The movie has been nominated for an Oscar in this year’s Best Animation Motion Picture category alongside Kung Fu Panda and Wall-E..
Fox Searchlight and UTV have developed a relationship that has led to the creation of three Hollywood films for worldwide release.
TV and 20th Century Fox shared global revenues. UTV retained distribution rights in India and Fox received rights to the rest of the territories.
Image works India was formed last year when Sony Pictures Imageworks acquired a 50.1% stake in Chennai-based VFX /animation studio Frame flow for a reported $5 million and renamed the company. Image works India has already contributed to "Spider-Man 3" and "I Am Legend”.
Disney has raised its stake in UTV to just over 50% from its previous 32.1%. The share acquisition reps the first time a Hollywood studio has taken a majority interest in a Bollywood major. Disney is also paying $30 million for a 15% stake in UTV Global Broadcasting.
Bollywood films released in the United States earn around $100 million a year through theater screenings, video sales and the sale of movie soundtracks.
The largest push into the American film industry by an Indian company is seen from Anil Ambani’s Reliance Entertainment.
Screening – Reliance Entertainment has been purchasing movie theatres in the US, targeting areas with the densest populations of the Indian diasporas in the US and bringing them Bollywood movies as well as regional Indian films
Production – At the 2008 Cannes Film Festival, Reliance announced that they have forged a number of agreements with production houses in an attempt to become one of the world’s largest entertainment conglomerates. Partners include Nicholas Cage’s Saturn Productions, Jim Carrey’s JC 23 Entertainment, George Clooney’s Smokehouse Productions, Tom Hanks Playtone Productions and Brad Pitt’s Plan B Entertainment.
Investment – Reliance funded DreamWorks’ exit from Paramount. DreamWorks has since left Paramount and linked itself to Disney. The deal amounts to a marriage of some of the biggest names in the Hollywood and Indian business world with Reliance getting a large stake in the new company.
MPA Member Companies are making a long-term investment on a market that currently has 125 million TV households and plans on millions more buying sets in coming years. 70 million Indian households subscribe to cable, making India the world’s third largest cable market. In 2007, profits are expected to clear over $700 million as advertising becomes more lucrative and Direct-to-Home (“DTH”) subscription expands.
The Indian market continues to have TV ad spending growing strongly. WPP Group PLC's GroupM media-buying unit forecasts India's TV ad market will likely grow 17% next year to 97.7 billion rupees, or $2.3 billion.
Colors is run by Viacom18, a joint venture with local media conglomerate Network18 Group.
The channel mixes celebrity hosted game shows and remakes of western reality show like
Next year, Time Warner which owns CNN, HBO and pat of CW among other networks plans to launch a Hindi language entertainment channel through a local joint venturee
Time Warner’s Turner Networks which will own 50% of the as-yet-unnamed new channel with India’s Alva Brothers Entertainment
Broadcasters have set their sights on News Corp’s Star TV whose Star Plus channel has dominated India’ TV ratings for years.
Star’s 2 channels combined had 33% of the Hindi speaking market in the week ended October 25
Sony Corp. and local partners run entertainment channel Sony Entertainment Television, which usually comes in third or fourth in the ratings.
Last year, Disney bought UTV's kids channel Hungama. Disney has raised its stake in UTV to just over 50% from its previous 32.1%, and is paying $30 million for a 15% stake in UTV Global Broadcasting.
NBC Universal announced in January 2008 that it will pay $150 million for an initial 26% stake in NDTV Networks, the holding company for the entertainment nets operated by leading Indian news broadcaster New Delhi Television. The company launched its own Hindi channel,called NDTV Imagine.
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