Indian film industry to be worth Rs 15,300 cr by 2010: PwC
Mumbai, Apr 7 (UNI) The Indian film industry is expected to double its revenue in the next four years with the theatres going digital and multiplexes booming up, and the producers eyeing foreign shooting locations more than in the past.
With this, the Rs 6,800 crore Indian film industry is estimated to reach a net worth of about Rs 15,300 crore by 2010, as per a PricewaterhouseCoopers (PwC) study conducted on the Indian entertainment and media business for the recent FICCI-FRAMES global summit.
Having grown 20 per cent from the previous year, the industry, which produced 1,041 films last year, will maintain similar growth rates over the next five years, PwC said in the study.
The domestic box office market, which accounts for 78 per cent of the industry's total revenue, was last year estimated at Rs 5,300 crore and is projected to grow to Rs 10,200 crore by 2010, while the home video market, estimated at Rs 400 crore this year, is projected to grow to Rs 2,100 crore in the next four years.
The domestic box office collections are also likely to grow, though they may lose some of the share to the emerging home video market and overseas box office collections.
About three per cent of the total television households have home videos and with the falling prices of VCD/DVD players and rising income levels, the penetration is estimated to grow by 25 per cent in the next five years, from the present three million to about 13 million.
The ancillary revenues - earned by film producers by selling their digital rights to mobile companies, satellite rights to television broadcasters and television distributors (cable companies and DTH players) - are estimated to increase by 20 per cent per annum on cumulative basis and are expected to garner a share of a little over 10 per cent of the overall pie by 2010.
However, though the number of multiplex screens is estimated to be only about 250, as compared to 12,000 single screen theatres, the aggressive growth plans by some leading film exhibition companies are expected to lead to the growth in number of multiplexes and thus, the screens, the study said.
Besides, multiplexes are increasing the number of tickets and more importantly, the admission prices range from the average price at a theatre of around Rs 17 to a multiplex rate between Rs 50 and Rs 80. Even if the average of Rs 15 increases to Rs 30 in the next five years, the domestic box office market revenues will grow by an estimated 13 per cent, it added.
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