Panaji, Nov 22 (UNI) Digitalisation,emergence of new media and changing customer preferences of consuming content are the key trends that are fundamentally changing the landscape of the Indian film industry and the associated industries, said a report.
Industry chamber CII and AT Kearney report titled 'The new economics of Indian film industry:creativity and transformation,'' predicts a similar boom for the 'retail' film content such as television, music and organised retailing.
The report was released at the CII's 'India-the big picture' conference here today coinciding with the 38th International Film Festival of India by Goa Chief Minister Digambar Kamat.
It also predicts large scale changes in the Indian entertainment sector-consolidation and emergence of large exhibition networks,emergence of large production houses, rapid growth in the home video segment and acceptance of Indian themed content in the global markets.
The report describes animation as one of the sunrise sectors.
While the global size for the animation industry is 25 billion dollars, the Indian industry is still nascent at 285 million dollars.
The report feels that the adoption of successful off shoring model of IT companies is driving the growth of the animation industry. Large IT savvy population is going to drive this industry to close to a billion dollars by 2010.
The total cost of making a full length movie in India is around 15 to 25 million dollars compared to 100-125 million in United States.
The report expects Indian companies to move up the value chain from being an outsourcing hub to a full fledged production house of animation films from concept to execution.
Traces of this trend are already being seen with large international production houses tying up with Indian production houses to co-produce animation pictures.
Recently, Walt Disney studios and Yashraj films have signed up a deal to co-produce animation movies for global audiences.
''However, if we have to sustain this growth and become a serious player in the industry, we need to plan for nuturing creative talent in this industry,'' the report said.
One of the areas where we are lacking now is minimal training schools offering courses on animation. This is an area where the government will need to intervene to propel growth in this industry, the report added.
Coupled with the growing Indian economy, the report exuded confidence in the Indian media and the entertainment economy to rank high among the fastest growing sectors in India and the world.
The report estimates that the film industry will be worth 4.4-5.1 billion dollars (Rs 176-204 billion) by 2011.
The Indian film industry has witnessed its share of wide ranging changes in the recent past. Bollywood, as the Mumbai based Hindi film industry is known, which commands a significant share of the Indian film market, is now gaining a global audience.
A rapidly emerging mall culture has given home to scores of new multiplex theatres while technologies have led to digital streaming of movies, as well as innovative modes of distributing trailers, pictures ,music and other film content.
While the hindi movies might have the widest reach within India and outside, it is the Telugu and Tamil movies which dominate the number of movies produced in the country. Collectively they account for more than 40 per cent of the total movies produced while compared to 20 per cent of hindi movies .This not only reinforces the wide spread interest for various genres of movies but also the depth of talent that exists in the film industry, the report says.
According to the report, some key areas that require regulatory attention from the government include controlling piracy, laws on intellectual property rights protection, developing India as a talent hub, unified entertainment tax regime and promote Indian films globally.
The report suggests active promotion of Indian films in the global arena through sponsoring movies to participate in the international film festivals.
There is a potential for 2000-3000 high quality multiplex screens in these small towns. For single theatres, the report recommended the need for them to offer wholesome entertainment options.
For the production houses, the report maintained that corporatisation will bring large scale benefits adding,that tying up with international distribution companies will maximise potential for global revenues.
In the home video segment, correct pricing and timing of release will be crucial. The report recommends that it would be ideal to launch a DVD a month from the theatrical release date to maximise the combined revenues from theatrical and home videos. Mobile, internet, IPTV are the new growth areas. In fact, mobile with lead the way in which different film related content is distributed through the new media, the report added.