Hyderabad: The gross box office realisations of Indian film industry are expected to reach $3.7 billion by 2020, according to Deloitte Indywood Indian Film Industry Report. As per December 2015 the gross box office realisation was $2.1 billion.
“The Indian film industry is the largest in the world in terms of number of films produced with around 1,500 to 2,000 films produced every year in more than 20 languages. In terms of revenue, the industry has gross box office realisations of $2.1 billion which is expected to grow at 11% CAGR reaching $3.7 billion by 2020,” the report said.
The report was released on Sunday at an event in Ramoji Film City. According to the release quoting the report, despite large number of films produced in India, the industry’s gross realisation has been substantially lower than its global counterparts.
“The box office realisation in the US and Canada stand at $11 billion whereas these countries produce significantly lower number of films (approximately 700 films),” the report said.
The domestic box office contributes majority of the revenue, representing 74% of the total industry. Cable and satellite rights and online/digital aggregation revenues are the fastest growing segments, and expected to grow at CAGR of about 15% over the period Financial Year 2015– Financial Year 20, it said.
“The Indian film industry is dominated by Bollywood, the Hindi film industry, contributing 43% of the revenue, while the regional films contribute the remaining 57%. “International films is currently a small, but growing segment, driven by rising numbers of English (and other foreign language) speakers, as well as increasing numbers of international movies witnessing dubbed releases across the country,” it said.
The report pointed out that going forward, the industry needs to focus on film tourism, skill enhancement, shortening window of release through better planning, updating current technology, countering piracy and growth of multiplexes to ensure growth and profitability.