Bollywood Needs Pakistan Market to Grow Business

Amid the Hindu Nationalists calls for sending Pakistani actors home, what is being overlooked is the fact that Bollywood needs Pakistan more than Pakistan needs Bollywood.  Why? Let me explain.

Pakistan is Bollywood's second biggest foreign market. Last year, Pakistan's box office receipts jumped by 28% while India's domestic box office collection fell 6.7%.

Decline in Bollywood's revenue at home is forcing the Indian movie industry to look to Pakistan for growth. Part of the Indian strategy is to feature Pakistani actors and artists in its productions to increase Bollywood's appeal to Pakistan's growing moviegoers market.

The money earned by Pakistani actors working in Bollywood is minuscule compared to the business Bollywood films are doing in the rapidly growing Pakistan market.

Pakistani Actors in Bollywood: Fawad Khan,  Mahira Khan, Mawra Hocane


Bollywood ticket sales fell by 6.7% to INR 2,568 crore ($385m) from 2014’s total of  INR 2,754 crore (US$413), according to figures published by India's Business Standard. Alarmed by declining sales, Disney Studios have decided to pull out of India.

After suffering huge losses at the domestic box office, the most recent one being Ashutosh Gowariker's Mohenjo Daro, Disney India - the company formed after Disney acquired controlling stake in UTV - has pulled the plug on all things Bollywood. Instead, Disney will only focus on its Hollywood films distribution, licensing and merchandising business in India, according to India Today.

On the other hand, Pakistani cinema, though small, is growing very rapidly with the explosive growth of multiplex theater screens. Pakistan's "The News Sunday" estimates that box office receipts in the country jumped 28 per cent in 2015 as compared to 2014 and this figure is only expected to grow in coming years. On Eid ul Azha this year, the top 3 highest-grossing films were all produced in Pakistan, according to EasyTickets.pk.

Source: EasyTickets.pk

Here's how Indian media and entertainment analyst Akar Patel describes Bollywood's business opportunity in Pakistan:

"In Pakistan, there is a big market for Indian movies in their multiplexes. For decades this revenue was lost to Bollywood because the movies were pirated. Under former president Pervez Musharraf, the official screening of movies was allowed, benefiting both nations. Today all Bollywood movies are shown there. Unfortunately, the current state of ties between the two countries has been allowed to deteriorate so much that we should not be surprised if Musharraf's wise decision is reversed."

It is a win-win arrangement with Pakistani artists working with their Indian counterparts in Indian movies and increasing Bollywood revenue from Pakistan market.

If the anti-Pakistan rhetoric and the attacks on Pakistani artists in Mumbai continue, it is very likely that Pakistan will respond by banning the showing of Indian films in a rapidly expanding market market for Bollywood entertainment. In addition to increasing estrangement between the two neighbors, stopping cooperation and collaboration will be a significant blow for the entertainment industries in both India and Pakistan.

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Comments

Riaz Haq said…
A Military Attack on #Pakistan Will Lead to #India's Worst Nightmare. #Kashmir #Modi http://thewire.in/68370/a-military-attack-on-pakistan-will-lead-to-indias-worst-nightmare/ … via @thewire_in

The key to peace in the region is to tackle the roots of the tension, which is the dispute over Kashmir.

Delhi’s decision, in the aftermath of the Uri attack, to ‘go on the strategic offensive’ against terrorist attacks launched with the support, if not connivance, of the Pakistan government has been noted all over the world. Few commentators had expected any other reaction. But unless it is planned meticulously with a precise definition of its objective and a careful appraisal of the alternatives for achieving it, such a shift is fraught with danger.

Indian TV has been baying for blood, but the goal of the Modi government should not be to ‘punish’ Pakistan for its sins, but to force it to give up using terrorism as a tool of foreign policy altogether. Such an effort is long overdue, but cannot be made by India alone, for the circumstances of Pakistan’s birth ensure that the entire nation will willingly commit suicide rather than bend its knee to India.

India can achieve this goal only in concert with other nations and heads of government. As the almost empty UN General Assembly hall to which Pakistani Prime Minister Nawaz Sharif gave his address so eloquently showed, the time for a concerted effort to get Pakistan off this track is ripe. So the relentless, ugly, jingoistic drum-beating that is being indulged in by TV channels vying for TRP ratings, and the threats of disproportionate retaliatory strikes being voiced by RSS/BJP functionaries, is not only unnecessary, but is also likely to prove self defeating because it is arousing dormant fears in the rest of the world not only of a nuclear war in South Asia, but of the prolonged nuclear winter that will follow in its wake.

Lest this sound fanciful, we need only remember that a mere 20,000 tonnes of sulphur dioxide spewed into the stratosphere by the eruption of Mount Pinatubo in the Philippines in 1990 brought down the global average temperature in 1991 by half a degree Celsius and caused a severe drought in sub-Saharan Africa. We have no precise idea what a full-scale nuclear war will release into the atmosphere, but it is also worth remembering that 650,000 years ago, during the coldest ice age of the past million years, the global average surface temperature was only five degrees below what it is today.
Riaz Haq said…
MUMBAI: Bans imposed on each other by the film industries in India and Pakistan threaten to endanger a burgeoning cross-border business that's worth more than Rs 100 crore even by conservative estimates.
Try this for size: about 50 Bollywood films release in Pakistan now every year and on an average, each makes at least Rs 1.5 to 2 crore. The biggest grossers in Pakistan in the last three years include the Aamir Khan thriller Dhoom 3, which earned Rs 16 crore, Raju Hirani's PK which spoke out against organized religion, Bajrangi Bhaijaan which dealt with an Indian youth's journey into Pakistan to reunite a child with her parents, and Sultan which muscled its way past all the others at the box-office (Rs 22 crore).
The ban on screening Indian films in Pakistan was formalised at a meeting of exhibitors and distributors in Karachi on Thursday and was in reaction to a resolution by a film producers' body in India against use of Pakistani artistes in Indian films. Analysts say the ban in Pakistan will hurt the country's domestic market as well, which is showing signs of recovery after decades of Islamisation and strict censorship.
A four-decade embargo on Indian films (imposed after the 1965 war) was lifted in 2007. "For either to take such a decision now means they've put commercials on the backburner after building bridges," says Avtar Panesar, vice president-international operations at Yash Raj Films in London. "From an overseas theatrical revenue perspective, Pakistan wasn't even in single digits 10 years ago and now it's gone up to 12 percent. In fact, for big Bollywood releases, it's often the number three highest-grossing territory after US and UAE. They're a substantial market for us and only becoming bigger. In fact, Pakistan has climbed the ranks so rapidly that once their market is more mature, it should theoretically become the largest international market for Indian films," he says.
Pakistan's love for Hindi films continued through the years when Lollywood (derived from Lahore, its city of origin) went into decline, total number of movie halls fell to about 30 and the industry produced not more than two releases in a year. The Pakistani viewership depended on piracy to sustain its interest in Hindi films.
"For us, it was about bringing legitimacy to Hindi films being watched in Pakistan via pirated circles," recalls Mukesh Bhatt who along with his brother Mahesh were part of a bilateral team of filmmakers and exhibitors who initiated a dialogue to allow Indian movies into Pakistan once more.
It was during Pervez Musharraf's regime that the iron curtain finally lifted. Audiences returned to the theatres, new investors stepped in and deteriorating Pakistani creative content too saw a revival. State-of-the-art multiplexes are currently the toast of every town.
Today, the Pakistani film industry boasts a $30 million box office and 116 screens. Six to ten Pakistani films have been releasing every year with the biggest grosser not less than $4 million.

http://timesofindia.indiatimes.com/city/mumbai/Cross-border-bans-hurt-filmmakers-in-India-movie-halls-in-Pakistan/articleshow/54758243.cms
Riaz Haq said…
A dark cloud has hung over Delhi these past few weeks, and it isn’t just the pollution. Ever since a September attack by militants in Kashmir killed 19 Indian soldiers, war has been in the air. And, as with the pollution, no part of life here is unaffected. A 65-year-old water-sharing pact between India and Pakistan is apparently being reconsidered. The famous Wagah checkpoint – where audiences watch Indian and Pakistani border guards trade high kicks and handshakes – was briefly shut to the public, reportedly after Pakistani revellers pelted the Indian side with stones.

And last week, after India announced its troops had launched “surgical strikes” in Pakistan-controlled Kashmir, the Indian Motion Picture Producers Association said it, too, was on a war footing. The legion of Pakistani actors and technicians in Bollywood, and other Indian cinema hubs, would be banned from working “until normalcy returns”, it said. The organisation’s president, TP Aggarwal, went even further, saying Pakistanis would be banned from the industry “for ever”, and asking the Indian government to boot them from the country.

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Divya Spandana (also known as Ramya), another Indian actor turned politician, was threatened with a civil sedition charge after visiting Pakistan in August. Her crime? Saying India’s rival was “a good country, not hell”. Meanwhile, Pakistan’s cinema lobby has called the restriction on its nationals “deeply regrettable”, and announced its own embargo, pulling all Indian films from Pakistani screens. Indian cinema was already banned in Pakistan for 43 years, after the second Kashmir war between the countries, and only permitted again in 1998. On Thursday, Indian sitcoms and soap operas – already restricted on Pakistani television to 86 minutes a day – were also completely banned by the country’s media regulator.


https://www.theguardian.com/world/2016/oct/09/indian-films-banned-pakistani-actors-ejected-how-the-kashmir-crisis-is-hitting-bollywood
Riaz Haq said…
Battleground Bollywood: India-Pakistan Tensions Hitting Film Industry


https://www.forbes.com/sites/suparnadutt/2017/04/18/battleground-bollywood-why-india-pakistan-tensions-spill-over-to-the-billion-dollar-film-industry/#4d7835d63444


Undoubtedly, Bollywood has long been a way to thaw the frosty relations between the two countries. 
And it is also a huge business. Indian films make more than $10 million in annual receipts in Pakistan — the country is the No. 3 foreign market for Indian movies after the U.S. and the UAE. And for many Pakistani theaters, Bollywood movies account for more than half their revenues. According to the All Pakistan Film Exhibitors Association, Bollywood brings in around 60% of cinema revenue in Pakistan. 
In November, an editorial in the Dawn had said that “in terms of being crowd-pullers on a large scale, nothing beats the content being generated by the mammoth industry next door.”

A medium-budget Bollywood film is able to earn $800,000 in Pakistan, while big-ticket movies, starring Salman Khan or Shah Rukh Khan generate more. In 2014, Aamir Khan’s PK grossed over $3.3 million at the Pakistani box-office, beating the country’s first big-budget movie Waar, that depicted every volatile aspect of Pakistan's rocky relationship with India. 
In 2013, Dhoom 3 grabbed $ 3.7 million and Salman Khan’s Bajrangi Bhaijaan got $2.2 million.
Riaz Haq said…
As 2016 ends, Bollywood at the edge of a cliff


http://in.reuters.com/article/bollywood-best-and-worst-films-of-idINKBN14H08V

By Shilpa Jamkhandikar
This was the year Bollywood slowed down and, in some cases, slammed the brakes.
For the third straight year, the Indian film industry did not grow. As some studios shut up shop, Hollywood films such as “The Jungle Book” trumped most Hindi films at the box office. Big-ticket movies didn’t strike a chord with audiences and the industry finds itself scrambling for a long-term solution.
Apart from Salman Khan’s wrestling drama “Sultan”, the year’s top grosser with more than 3 billion rupees ($44 million) in revenue, most Bollywood films couldn’t woo audiences or recover their money.
The Bollywood industry made around 23 billion rupees ($338 million) in domestic box-office revenue in 2016, a significant drop from the 27 billion rupees ($397 million) in 2015, according to Shailesh Kapoor, who runs media consulting firm Ormax Media. The 2016 figures are till Dec. 22 and do not include box-office returns for Aamir Khan’s “Dangal”, which released last Friday.
Bollywood is hugely dependent on its male stars to deliver blockbusters, specifically the trio of Salman Khan, Shah Rukh Khan and Aamir Khan, who have delivered some of the industry’s biggest hits. But this year, even Shah Rukh Khan’s “Fan”, a thriller about a man obsessed with a movie star floundered at the box office.
“There are two kinds of films that work at the box office, the big star vehicles like ‘Sultan’ and the niche content films like ‘Piku’ last year. There weren’t too many of either this year. ‘Fan’ not making it past the 100 crore ($14 million) mark was a huge setback,” Kapoor said.
More than 200 Hindi films opened in cinemas this year. Of these, some 60-odd films got a proper release and had a marketing budget. Only 12-14 films made a profit, Kapoor said.
What must strike fear in Bollywood’s heart though is that the number two position in terms of box-office revenue was taken by a Hollywood film. “The Jungle Book”, Disney’s live-action film based on Rudyard Kipling’s book made around 1.8 billion rupees ($26 million) in India, surpassing every other Hindi film except “Sultan”. Marathi film “Sairat” (Wild) also enamoured audiences, crossing the 100 crore rupee ($14 million) mark, more than what most Bollywood films managed.

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As companies such as Netflix and Amazon try harder to draw Indians away from TV and theatre screens, offering the same content at half the cost, Bollywood will have to use every trick in the book to make sure it retains its audiences in the coming year.
Riaz Haq said…
Bollywood revenue has declined from $413 million in 2014 to $385 million in 2015 to $338 million in 2016

Down 6.7% from 2014 to 2015, Down 12% from 2015 to 216


http://in.reuters.com/article/bollywood-best-and-worst-films-of-idINKBN14H08V

http://www.business-standard.com/article/companies/bollywood-box-office-collections-down-7-116010500989_1.html
Riaz Haq said…
Global box office barely grew in 2016. Blame it on China

http://www.latimes.com/business/hollywood/la-fi-ct-mpaa-box-office-20170322-story.html

lobal movie box office revenue growth slowed last year as international receipts declined for the first time in 12 years, reflecting a cooling in China’s once-red-hot film market, according to a new report.

The total worldwide box office rose 1% to a record $38.6 billion in ticket sales last year, according to a report from the Motion Picture Assn. of America, the lobbying group that represents the six largest film studios. In 2015, global revenues jumped 5%.

The leveling off at the box office underscored sluggish movie ticket sales in countries outside the United States and Canada. Foreign box office totaled $27.2 billion in 2016, down from $27.3 billion in 2015, thanks to a dramatic slowdown in box office growth in China. The increased value of the U.S. dollar compared with other currencies also dampened ticket revenues, the association said in a report released Wednesday.

"The Chinese market is a little concerning,” said Jeff Bock, a box office analyst for Exhibitor Relations. “They thought it was going to be some magical potion, and it's not."

Though the drop in foreign ticket sales was less than 1%, it’s the first time the international box office has failed to grow since 2005. That’s a worrisome trend for an industry that has grown increasingly dependent on the global marketplace. International markets made up 71% of the global box office in 2016, compared with 63% a decade ago.

The slowdown in China was particularly jarring for the industry, coming after years of speculation that the country would soon surpass the United States and Canada as the world’s largest film market.

Revenues from China fell 1% to $6.6 billion in 2016, in U.S. dollars, a surprising downturn from 2015, when ticket sales grew by 49%. A variety of factors hurt the box office in China, including a series of sub-par movies, a lack of discounts by China’s online ticket sellers, and greater government scrutiny of bogus box office statistics.

Foreign currency declines in countries such as Mexico, Argentina and Britain also depressed revenues in U.S. dollar terms. The British pound, for example, fell 12% against the dollar last year.

“A major issue is currency,” said Julia Jenks, vice president of worldwide research for the MPAA. “It’s hiding a lot of growth,”

The statistics were brighter for the domestic market.

Box office receipts hit a record $11.4 billion in the United States and Canada, up 2% from 2015, thanks to blockbusters such as “Rogue One: A Star Wars Story,” “The Secret Life of Pets,” and “Captain America: Civil War.”

Nonetheless, the industry is facing some troubling head winds, including long-term stagnation in the number of tickets sold. Admissions totaled 1.32 billion last year, flat compared with 2015, and down from 1.4 billion a decade ago. The slide in attendance underscores the rising competition cinemas face to lure younger audiences who have more entertainment options in the home. Per capita attendance in the United States and Canada slipped 1% to 3.8 last year.

Despite the flattening attendance, revenue still grew because of an increase in ticket prices. The average ticket price hit a record $8.65 in 2016, according to the National Assn. of Theatre Owners, the result of cinema chains adding more advanced screening technology and more luxurious accommodations such as recliner seating.

“The question is, what's going to drive the North American box office to the heights we saw 10 to 20 years ago in terms of attendance?" Bock said.

Some young people went to the theaters more often last year. People ages 18 to 24 bought an average of 6.5 movie tickets in 2016, up 10% from 2015. Yet, the movie business took a hit among 12-to-17-year-olds, who went to the movies 16% less frequently than in 2015.
Riaz Haq said…
70 years of Pakistan’s film industry
A look at the good old days of the Pakistani film industry, which gave us immortal tunes, self made stars, and award-winning directors
https://www.geo.tv/latest/153538-70-years-of-pakistans-film-industry
The film industry in Pakistan is as old as the country itself. It has seen the best of its days, but sadly, the present situation is nowhere near to what it had been.
The good old days had given Immortal tunes, excellent films, self made stars and award-winning directors, but mostly depended on individuals.
The initial decade (1948-1957):
Despite lack of equipment and resources, country’s first film, Teri Yaad, was released in August 1948. Nasir Khan, brother of the famous actor Dilip Kumar, was the hero, with Asha Posley playing his love interest. Pakistan’s first Golden Jubilee film, Sibtain Fazli’s Dupatta, was released in 1952. The film was also appreciated in India at release. It had Noor Jehan as lead, while the music was composed by Feroz Nizami, who had earlier composed for Noor Jehan-Dilip Kumar starrer Jugnu in undivided India five years back. Like Nizami sahab, musicians Ghulam Haider, Rasheed Atre, GA Chishti and Khwaja Khurshid Anwar, opted to Pakistan and played an important role in establishing the industry.
Many stalwarts from India, namely Munshi Dil, Shaukat Hussain Rizvi, Fazli brothers, also migrated, and by the end of the 50s, Pakistan had its set of directors. A young Allauddin, who played the role of Nargis’s father in Mela (1948), remained active for over 30 years, performing memorable roles in his career. The struggling days of the industry would have been different, if there had been no Santosh Kumar or Sabiha Khanum. The ‘first couple’ of the industry eventually tied the knot after giving hits like Do Aansoo (1950), Ghulam (1953) Qatil, Inteqaam (1955), and Sarfarosh (1956). Actor Sudhir was labeled an action hero with hits like Baaghi (1956) and Akhri Nishan (1958), while Syed Kemal, a replica of Indian superstar Raj Kapoor, came on the scene with Thandi Sarak (1957). He could dance as well as made you laugh. Phenomenal Rise of Aslam Pervez, first as a hero and later as a villain, was termed legendary in any phase of life.
The peak years (1958-1967):
It is credited as the golden period of the industry. With limited ban on Indian films, local productions thronged. Field Marshall Ayub Khan’s rule had restrictions on nearly everything, but it was the creative team of director Khalil Qaiser- music composer Rasheed Attre- writer Riaz Shahid who accepted the challenge and gave out exceptional films like Shaheed (1962), Firangi (1964) and Hukumat (1967) until Qaiser’s death in mysterious circumstances.
Riaz Haq said…
#Dubai's Abraaj invests in #Pakistan #cinema operator; Plans to build 80 new screens in next 4 years. #FDI #Theaters

http://www.arabianbusiness.com/industries/banking-finance/380400-dubais-abraaj-invests-in-pakistan-cinema-operator

Dubai-based Abraaj Group has announced it has invested in Cinepax Limited, Pakistan’s leading cinema operator.

With Abraaj’s investment, the value of which has not been disclosed, Cinepax plans to develop 80 new screens across multiple locations over the next four years and also grow other entertainment related ventures, Abraaj said in a statement.

Arif Baigmohamed and Pir Saad Ahsanuddin established Cinepax in 2006 and launched their first multiplex in 2007. Since then, the company has established itself in the market and today has 29 screens in 12 locations.

Pakistan’s entertainment industry has significant growth potential, with a low ratio of cinema screens (0.5 per million population).

Abraaj said it will support the company in establishing international standard multiplex cinemas in new and upcoming areas.

Omar Lodhi, partner for Asia at The Abraaj Group, said: “Our investment into Cinepax demonstrates our faith in the opportunity that Pakistan’s young growing population and expanding middle class represents.

"As one of the most active investors in Pakistan, with a strong on-the-ground presence, we see a long-term market opportunity in the cinema operator and video streaming business.”

Arif Baigmohamed, chairman of Cinepax, added: “We are delighted to welcome Abraaj as an investor into our business and look forward to partnering together to reach more people across the country, providing much needed entertainment options.”

The Abraaj Group has been present in Pakistan since 2004. This transaction marks Abraaj’s ninth investment into Pakistan across a number of sectors including healthcare, power distribution, renewable energy and industrials.

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