Cos bet big on Hollywood, ignore Bollywood

Cos bet big on Hollywood, ignore Bollywood
PTI
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First Published: Fri, Dec 18 2009. 04 23 PM IST
Updated: Fri, Dec 18 2009. 04 23 PM IST
New Delhi: The Indian entertainment and media (E&M) corporates will prefer Hollywood over Bollywood in terms of investment in the near future, as over 90% of the Bollywood movies flop annually, a study said.
“Ninety per cent of the domestic corporates in E&M in future will prefer to invest in Hollywood, ignoring Bollywood since the former provides huge returns on account of it’s more than 90% success ratio,” a joint study by Nishith Desai Associates and Assocham said.
It says more than 90% of about 1,000 films produced annually by Bollywood flops and thus hardly gives investors any return.
However, in Hollywood, the focus is always on making award-winning films which seek high quality and that is why the success rate of those films are so high, it said.
“Therefore, domestic corporates will prefer to invest more in Hollywood rather than explore possibilities for investing in Bollywood,” it said.
Besides other problems, the domestic segment is confronting piracy, estimates for which suggests, the film industry lost $959 million and 5,71,896 jobs a year ago.
The problem has become so deep-rooted that pirated CDs/VCDs/DVDs are available at prices as low as Rs30 as compared with Rs150-300 for a multiplex theatre ticket.
The study has also called for creation of a National Media Policy for vision and benchmarking for films and entertainment industry.
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First Published: Fri, Dec 18 2009. 04 23 PM IST