Wednesday, April 19, 2017

Bollywood Business in Sharp Decline: Down 12% in 2016

Bollywood movie revenue suffered 12% drop in 2016 to $338 million, the sharpest decline ever, according to Reuters news agency. Meanwhile, the global movie revenue rose just 1% to a record $38.6 billion last year, according to a report by Motion Pictures Association of America.

Box office sales 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”, according to a report in Los Angeles Times.

By contrast, the Bollywood revenue, a tiny fraction of the global film market,  has been in decline since 2014. It fell from $413 million in 2014 to $385 million in 2015 to $338 million in 2016, down 6.7% from 2014 to 2015 and then again dropping 12% from 2015 to 216.

While Bollywood business is in sharp decline, the 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.

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 can be a win-win arrangement with Pakistani artists working with their Indian counterparts in Indian movies and increasing Bollywood revenue from the growing Pakistan market that is already the second largest market for Bollywood entertainment. However, the powerful Hindu Nationalists appear to be succeeding in thwarting this partnership.

If the anti-Pakistan rhetoric and the attacks on Pakistani artists in Mumbai continue, it is very likely that Pakistan will respond by reimposing the ban on 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.

Related Links:

Haq's Musings

Bollywood Eyes Pakistan Market

Peepli Live Destroys Indian Myths

Bollywood-Hollywood Combos

Indian Bollywood Seeks Cultural Dominance

US Mortgage Fraud Funded Bollywood Movie

Coke Studio: Music Drives Coke Sales in Pakistan

3 comments:

Riaz Haq said...

#Dangal released Christmas 2016. Its first week receipts were $30 m, bringing total #Bollywood revenue to $368m, down from $385m in 2015.

Here's the data on #Dangal box office as published in TOI. 2016 total about 190 crores or about $30m. #Bollywood

http://timesofindia.indiatimes.com/entertainment/hindi/bollywood/box-office/dangal-box-office-collection-will-aamir-khans-2016-film-beat-pk-to-become-highest-bollywood-grosser/articleshow/56350224.cms

Riaz Haq said...

Box Office: 'Baahubali 2' Becomes Highest-Grossing Indian Film of All Time

http://www.hollywoodreporter.com/news/india-box-office-baahubali-2-becomes-highest-grossing-indian-film-all-time-1000497

The sequel to the 2015 epic has collected $131 million worldwide, beating previous record-holder 2014's 'PK'.
Following its record opening weekend when it released worldwide on April 28, Baahubali 2: The Conclusion has become the highest-grossing Indian film of all time.

Because India does not officially report box office numbers, local reports have tracked the latest figures. The film reportedly has crossed $131 million (over 8 billion rupees) worldwide, easily beating the estimated $123 million global haul collected by previous record-holder, 2014's PK which starred top actor Aamir Khan.

With the film collecting $13.1 million in the U.S., Baahubali 2 also beat previous record-holder Dangal's $12.4 million total haul in the territory. The real-life wrestling drama also starred Aamir Khan. In India, the film has collected over $106 million, becoming the highest-grossing film in the country, beating previous record-holder Dangal which collected $83 million.

Baahubali 2 is the sequel to the 2015 epic Baahubali: The Beginning and is directed by acclaimed South Indian helmer S. S. Rajamouli. Planned as a two-part epic, both films were simultaneously filmed at an estimated budget of $40 million, making this the most expensive Indian production ever.

The films are produced by Shobu Yarlagadda's Arka Mediaworks. The sequel continues the story of warring royal cousins in an ancient mythical kingdom and again features top South Indian stars Prabhas, Rana Daggubati, Tamannaah and Anushka Shetty.

In addition to its original Telugu language version, the film was released in Tamil, Malayalam and Hindi. Leading Bollywood banner Dharma Productions distributed the Hindi version of the film and posted a tweet touting the film was “the #1 blockbuster of Indian cinema.”

Riaz Haq said...

Beyond Bollywood: where India's biggest movie hits really come from

https://www.theguardian.com/film/filmblog/2017/may/13/bollywood-india-film-industry-baahubali-2-the-conclusion



The global success of SS Rajamouli’s fantasy epic sequel Baahubali 2: The Conclusion has once again brought Indian cinema to the attention of the world. Its forerunner, the $31m-budgeted Baahubali: The Beginning (2015), grossed $100m worldwide but caused little more than a ripple outside India. Within the country, it made waves because the film, made in the south Indian Telugu and Tamil languages, saw the Hindi-dubbed version alone gross more than $20m.

Baahubali 2: The Conclusion review – joyous action epic soars

The second part of India’s most expensive film ever is a jaw-dropping blockbuster that combines nimble action with genuine heart
Read more
It is a common misconception that the Hindi-language, Mumbai-based film industry – known as Bollywood – is India’s national cinema. The numbers tell a different story. India produces an astonishing 1,900 films a year on average, of which Hindi-language Bollywood accounts for about 340. The bulk of the rest comes from the Tamil, Telugu, Malayalam, Kannada, Marathi, Bengali, Punjabi and Gujarati languages. Domestic box office has remained stagnant at about $1.5bn and, while Bollywood might produce more films (Tamil had 291, Telugu 275, and Kannada 204 films in 2016), it contributes just a third of the box office gross. In short, Bollywood has the visibility, but not the profits, with the under-performers far outweighing the hits.

In this context, the numbers racked up by the “regional” Baahubali 2 – budgeted at $39m, made in Telugu and Tamil, with Hindi and Malayalam dubbed versions – are astonishing by Indian standards. The film opened on 28 April and grossed $194m in 13 days, making it the highest Indian grosser of all time and putting it on track to become the first Indian film to gross $200m. It easily outperformed the $123m collected by PK (2014), starring Bollywood icon Aamir Khan.