The world’s the stage for major Indian media firms, with some of them set to make a global mark by joining the Hollywood bandwagon. Recently, at the Cannes film festival, Anil Ambani-led Reliance ADAG inked a deal with eight Hollywood production houses, and the projects will feature actors including Nicholas Cage, Tom Hanks, Jim Carrey and others. With this, Reliance BIG Entertainment now steps into every department of film trade - production, distribution, exhibition, and post-production. Billionaire investor George Soros recently paid $100 million for a minority stake in Reliance Entertainment, which the company said valued it at $3 billion.
Entertainment industry analysts say this trend is going to gain momentum in the coming days. Says Farokh Balsara, head - media and entertainment, Ernst & Young, “Indian Companies are making waves in Hollywood and many more Companies will join in. for Reliance ADAG, it makes sense to do this as they are already into broadband, DTH and radio. However, the whole project will take three to four years to be completed.”
Automotive major Mahindra & Mahindra (M&M), meanwhile, is diversifying into entertainment. Sources disclosed that the company has created a $5 million media fund to invest in movies and television. M&M is slated to co-finance Monsoon Films’ ‘Buddha’, to be produced and directed by Pan Nalin, who earlier directed the acclaimed ‘Samsara’.
UTV, on the other hand, has co-produced a venture with 20th Century Fox - ‘The Happening’ directed by Manoj Night Shyamalan - and has worked with Walt Disney and Will Smith's production house, Overbrooks. PVR has also acquired 250 theatres with 1,000 screens in the US. Meanwhile, home entertainment company Shemaroo has made distribution hubs in various parts of the US to beef up content delivery.
On Tuesday, Eros International said it has formed a joint venture with US Lionsgate of the US to distribute all the original content the latter produces across formats within South Asia, including India.
So, what makes these Companies, especially the ones with a non-film background, foray into film production and, that too, in Hollywood?
First, all these Companies, in whatever categories they operate in, have always believed in going beyond Indian Markets. Second, independent producers in Hollywood want to reduce their dependency on big international studios. On the other hand, Indian corporates are willing to finance these independent producers. So, it is a welcome change at both ends. Third, Hollywood annually produces about 600 movies, with a turnover of over $85 billion, whereas Bollywood produces about 1,000 movies with an annual billing of $3-4 billion. “The power to monetise is much higher in Hollywood, utilising the same effort and money,” says Balsara.
Fourth, Bollywood has become a domain of 6-7 established names or actors. Considering the number of ads they endorse and shows they host on television, each one of them can do a maximum of three movies in a year. Every producer in the country wants to work only with these actors and so getting the dates is another nightmare. Also, over time, the kind of remuneration these actors command has become unreasonable.
Also, when Indian Companies make some acquisition in India the number of approvals they go through can be tiring. However, when they acquire a listed company in the US, in one stroke they are reaching out to a wider audience and a market that matters the most internationally.
American broadcasters have also agreed to get out of the analog TV business on January 1, 2009. Companies which are making a Hollywood foray will have to upgrade their digital expertise, both in terms of content and distribution. Therefore, when the Indian market transcends from analog to digital, these Indian Companies will have an edge over the others.
Says Harish Bijoor, brand domain specialist and CEO, Harish Bijoor Consults, “Acquisition of brands such as Tetley by Tata and Arcelor by Mittal, have changed the image of a staid, old India. This excitement will translate into Hollywood investments, for sure. My only worry is that the US film industry should not act as a blockade to such involvements. The Japanese have suffered that kind of treatment in the US in the past.”...
http://www.financialexpress.com/news/Indian-cos-eye-Hollywood-pie/312749/
Entertainment industry analysts say this trend is going to gain momentum in the coming days. Says Farokh Balsara, head - media and entertainment, Ernst & Young, “Indian Companies are making waves in Hollywood and many more Companies will join in. for Reliance ADAG, it makes sense to do this as they are already into broadband, DTH and radio. However, the whole project will take three to four years to be completed.”
Automotive major Mahindra & Mahindra (M&M), meanwhile, is diversifying into entertainment. Sources disclosed that the company has created a $5 million media fund to invest in movies and television. M&M is slated to co-finance Monsoon Films’ ‘Buddha’, to be produced and directed by Pan Nalin, who earlier directed the acclaimed ‘Samsara’.
UTV, on the other hand, has co-produced a venture with 20th Century Fox - ‘The Happening’ directed by Manoj Night Shyamalan - and has worked with Walt Disney and Will Smith's production house, Overbrooks. PVR has also acquired 250 theatres with 1,000 screens in the US. Meanwhile, home entertainment company Shemaroo has made distribution hubs in various parts of the US to beef up content delivery.
On Tuesday, Eros International said it has formed a joint venture with US Lionsgate of the US to distribute all the original content the latter produces across formats within South Asia, including India.
So, what makes these Companies, especially the ones with a non-film background, foray into film production and, that too, in Hollywood?
First, all these Companies, in whatever categories they operate in, have always believed in going beyond Indian Markets. Second, independent producers in Hollywood want to reduce their dependency on big international studios. On the other hand, Indian corporates are willing to finance these independent producers. So, it is a welcome change at both ends. Third, Hollywood annually produces about 600 movies, with a turnover of over $85 billion, whereas Bollywood produces about 1,000 movies with an annual billing of $3-4 billion. “The power to monetise is much higher in Hollywood, utilising the same effort and money,” says Balsara.
Fourth, Bollywood has become a domain of 6-7 established names or actors. Considering the number of ads they endorse and shows they host on television, each one of them can do a maximum of three movies in a year. Every producer in the country wants to work only with these actors and so getting the dates is another nightmare. Also, over time, the kind of remuneration these actors command has become unreasonable.
Also, when Indian Companies make some acquisition in India the number of approvals they go through can be tiring. However, when they acquire a listed company in the US, in one stroke they are reaching out to a wider audience and a market that matters the most internationally.
American broadcasters have also agreed to get out of the analog TV business on January 1, 2009. Companies which are making a Hollywood foray will have to upgrade their digital expertise, both in terms of content and distribution. Therefore, when the Indian market transcends from analog to digital, these Indian Companies will have an edge over the others.
Says Harish Bijoor, brand domain specialist and CEO, Harish Bijoor Consults, “Acquisition of brands such as Tetley by Tata and Arcelor by Mittal, have changed the image of a staid, old India. This excitement will translate into Hollywood investments, for sure. My only worry is that the US film industry should not act as a blockade to such involvements. The Japanese have suffered that kind of treatment in the US in the past.”...
http://www.financialexpress.com/news/Indian-cos-eye-Hollywood-pie/312749/
