BackConsumer boom key driver of Bollywood’s sound growth
Consumer boom key driver of Bollywood's sound growth
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Describing India as Asia’s “creative superpower", a leading US educational institution has identified three key factors that are driving the double-digit growth of the Indian film industry, and linked it to the wider consumer boom witnessed by the nation in the recent years.
A report by the Creative and Innovative Economy Centre (CIEC) of the George Washington University Law School has said that the proliferation of multi-screen theatres, introduction of satellite delivery and the acceleration of the home entertainment market are the three key factors behind the massive growth of Bollywood.
The report talks about how the confluence of new business models, application of cutting-edge digital technologies, and changes in social behaviour are helping to accelerate the growth rate of India’s film industry. It was presented at a roundtable discussion hosted by CIEC in Geneva, Switzerland, for delegates attending the World Intellectual Property Organisation’s Development Agenda meetings.
“Last year, India’s film industry grew by more than 15%," Bertrand Moullier, a CIEC research associate and author of the report, said. “Barring a major recession, that number will only continue to increase. I wouldn’t be surprised if the industry grows by as much as 20% this year. India is earning its reputation as Asia’s creative superpower, producing over 1,000 films annually and gaining audiences worldwide." The report looks at how several critical factors are reshaping the industry.
“Modern multiplexes are quickly replacing single-screen cinemas, giving Indian consumers flexible programming, high-quality viewing conditions, and providing concession sales. Multiplexes are included in the plans for most of the 300 shopping malls currently under construction in India," the university said in a release. The cinema halls will serve as magnets, bringing people who come to the movies to adjacent retail outlets to shop.
Technology is playing a pivotal role in the industry’s boom with new operators delivering films straight to theatres via digital satellite technology. The study also looked at the growth of home entertainment among India’s expanding urban middle-income population.
But the report warned that “a pandemic level of illegal copying and distribution takes money out of the filmmakers’ pockets, making it harder for them to raise working capital for future projects".
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