1. What is Entertainment ?

Entertainment is one thing affiliated with man since time immemorial. Ever since history has been written and even during the pre-historic period there has been proof of man doing many things to entertain himself and his fellowmen and keep himself occupied. Technically speaking, Entertainment is an activity of receiving as host, or of amusing, admitting or cherishing as also, reception or treatment, in general. Something that amuses, pleases, or diverts maybe termed as entertainment too. The earliest glimpses have been of paintings on the inner walls of caves and also on trees and huge rocks and boulders. Then came the relatively newer games like cockfights, horse races, gambling and a million others. Humans look to Entertainment for Rela ation, !un " as a diversion from their monotonous day-to-day life. However, it was always considered to be a secondary activity #$T today, in the %&st 'entury, Entertainment plays an imperative role in the stress-filled life of the average man. 'ashing in on this, many have converted it into their source of daily #read " #utter. The Entertainment (ndustry has grown significantly and has cemented its position as one of the few top lucrative industries in the )*R+, of Trade, #usiness " 'ommerce.

-age & of ./

2. The Entertainment Industry

Show#(0, as we all know it, is 1uite widespread, so much so that it would take hours 2ust to write down its variants. 3iven below are the ones which cover a ma2or chunk much as up to 456 of the (ndustry 7 'inema Satellite Television Radio 8usic Theatre +ive Shows (nternet *f these, ( will be discussing in detail, the Top % namely, 'inema and satellite television with respect to the (ndian 8arket.

-age % of ./

Industry Status and Growth Potential

The (ndian economy continues to perform strongly and one of the key sectors that benefits from this fast economic growth is the E"8 industry. This is because the E"8 industry is a cyclical industry that grows faster when the economy is e panding. (t also grows faster than the nominal 3,- during all phases of economic activity due to its income elasticity wherein when incomes rise, more resources get spent on leisure and entertainment and less on necessities. !urther, consumption spending itself is increasing due to rising disposable incomes on account of sustained growth in income levels, and this also builds the case for a strong bullish growth in the sector. The si9e of E"8 in (ndia is currently estimated at (:R ;<; billion and is e pected to grow at a compounded annual growth rate of &4 percent over the ne t five years. The television industry continues to dominate the E"8 industry by garnering a share of over =% percent, which is e pected to increase by a further 4 percent to reach about <& percent. The share of the film industry, which currently stands at &4 percent, is not e pected to change materially over the ne t five years. -rint media, which stands at over ;& percent, is pro2ected to lose some of its share in favour of the emerging segments.

-age ; of ./

 1. Entry of new players

Key developments

The year %55< saw the entry of new players across all segments of the E"8 industry. The most prominent entry was that of the Reliance 3roup in the filmed entertainment and radio segment. ,uring %55<, Reliance 'apital bought a ma2ority stake in >dlabs which enabled it to have a presence across the entire value chain of the filmed entertainment segment ranging from film production, e hibition and distribution. Through >dlabs, Reliance also made its entry into the radio segment by bidding for over <5 !8 radio stations across the country with aggregate bids of over (:R &.< billion. The other significant entry into the entertainment and media segment was that of the Tata group, through its subsidiary ?idesh Sanchar :igam +imited @?S:+A. ?S:+ tied up with the -aris-based Thomson 3roup in %55< with the ob2ective of identifying opportunities in managing and delivering content for third parties, including broadcasters and content providers. Thomson 3roup also recently announced its partnership with Tata Sky +imited for manufacturing set-top-bo es and providing sales service and support network for their ,TH customers.

2.

Foreign investment

*wing to the strong impetus for growth from the economic and demographic factors coupled with some regulatory corrections, the sector also recently witnessed increasing foreign investment inflows in most segments of the E"8 industry, especially the print media. Recent e amples include foreign investment in English dailies such as Hindustan Times and #usiness Standard by Henderson 3lobal and !inancial Times respectively. ?ernacular media too saw its share of foreign investment with a strategic e1uity investment by (ndependent :ews " 8edia in ,ainik Bagran, a leading Hindi ,aily.

-age = of ./

(n the broadcasting space, most channels beaming into (ndia @such as )alt ,isney, ES-:-Star Sports, Star, ,iscovery, ##' etc.A have established foreign investment subsidiary companies for content development and advertisement airtime sales. (n the television distribution space arena, foreign investment is being drawn by the larger cable operators referred to as Cmulti-system operators @8S*AD such as Hathway and Hindu2as. (n the television content space, the recent investment in :imbus 'ommunications by a foreign private e1uity player is seen as the start of a significant trend of foreign investment inflows.

-age < of ./

Barriers to Investment

> lot more investment can be drawn into the entertainment and media industry if certain sectoral policy barriers can be addressed. Some of the issues that need to be addressed which commonly impacts all segments and need to be addressed urgently include7

1. Piracy
The problem of piracy assumes a different proportion in a country such as (ndia with an area of ;.; million s1. km. and a population of over & billion speaking %% different languages. (t impacts all segments of the industry especially films, music and television. 8ost of the credible efforts today to combat piracy have been initiated by industry bodies themselves. *n part of the government, lack of empowered officers for enforcement of anti-piracy laws remains the key issue that is encouraging the menace of piracy. This, coupled with the lengthy legal and arbitration process, is being viewed as a deterrent to the crusade against pirates. The current 'opyrights >ct too is dated in terms of technology improvements, and above all, it does not address the needs of the electronic media which has ma imum instances of piracy today. The draft of the *ptical ,isc +aw to address the need for regulating piracy at the manufacturing stage is still lying with the ministry for approval.

2. Lack of a uniform media policy for foreign investment

The sector currently lacks a consistent and uniform media policy for foreign investment. Some of the inconsistencies include different caps in foreign direct investment in various segments. This is enumerated below7 E Television distribution7 ,TH =46 @strategic !,( only %56AF cable =46 @ownership can only be with (ndia citi9ensA. E 'ontent @newsA7 Television and print - %G6F radio - nil

-age G of ./

E 'ontent @non-newsA7 Television and print - &556F radio %56 @only portfolioA

3. Level playing field with incumbents

8ost sectors of the (ndian E"8 industry have traditionally operated under various agencies of the (ndian government, which were later opened to the private players in various stages. !8 radio is one such e ample where the incumbent >ll (ndia Radio @>(RA was the sole player in the medium of both >8 and !8 radio broadcasting. +imited fre1uencies of !8 broadcasting have been opened to the private players but with a licence fee, which is not currently applicable to the incumbent >(R. Similarly, in television segment, all terrestrial broadcasting rights continue to be with the incumbent ,oordarshan.

. !ontent regulation
> long-standing debate continues amongst the industry members on regulation of content. Some of the issues that need to be addressed in this sphere include7 Should there be a content regulator or should the industry be allowed self-regulation under a broad frameworkH (f there needs to be one, should the content regulator be independent of the carriage regulatorH Should the content regulations be consistent across all delivery mediums such as films, television, radio and print or different sets of regulation should be evolved for each mediumH )hat should be the working mechanisms of a content regulation in terms of enforcement, penalties for default from prescribed guidelines etc.H

". Price regulation in the television industry

>s per a notification issued by the TR>(, broadcast media pricing has been fro9en for over a year now. Though TR>( did allow a / percent inflationary ad2ustment late in %55=, the inflationary ad2ustment of = percent in %55< is under a legal dispute. Such price controls limit a broadcasterDs ability to shape their business model, based on market demand and the competitive
-age / of ./

environment. Since the market has so far been efficiently regulated through competition, price regulation thus becomes a deterrent.

#. !ross$media ownership rules

8edia integration is an important tool in the hands of the media industry which by its very nature could lead to anti-competitive behaviour hurting the entire value chain of the industry. The government has been mulling over evolving cross-media ownership rules for which even a public draft has not been evolved as yet. 8ost E"8 sectoral policy documents have an in-built compliance clause, which states that companies have to abide by the cross-media rules. However, in the absence of any draft rules or an established time-frame for evolution of such rules, potential foreign investors canDt evolve their long-term investment strategy for (ndia.

%. Lack of empowered regulators

>t present, the government has appointed an independent regulator I TR>( I for only television and radio. Here too, the role of the regulator has been restricted to providing recommendations on segment issues to the government, as a result the government has still not acted upon several recommendations by the regulator. Some of the key recommendations include Cissues relating to broadcasting and distribution of T? channelsD of which Caddressability in distributionD forms a significant part impacting the largest segment of television. *ther pending recommendations include Cdigitalisation of cable T?D, Cprivatisation of terrestrial broadcastingD, Clicensing of satellite radioD etc.

-age . of ./

&. 'erging of the F(( and F)( caps

Some industry members are of the view that converting the current cap on foreign institutional investment @!((A investment to foreign direct investment @!,(A is not a very encouraging move by the government. !(( is primarily considered Jhot moneyK and is invested by foreign funds to make 1uick returns unlike !,(, which is longer term in nature and is actually invested into the business. !,( in several cases is also accompanied with e pertise @such as technologyA being brought into the country that helps in the growth and development of the industry. >n !(( invests like a financial investor with the prime motive of 1uick appreciation of its invested capital rather than taking a longer-term view of the business, whereas an !,( investor is more in the nature of a strategic investor and is in the business for the long haul. The new policy does not recognise the need for creating an environment that encourages strategic investors in making investments in the sector.

*. +a, treatment of foreign broadcasting companies

The ta treatment of foreign companies in the broadcasting sector in (ndia is emerging as the single most important policy issue deterring foreign investment in the country. > ma2or issue pertains to ta ation of satellite segment usage fee paid by broadcasters to foreign satellite companies. Ta assessing officers have attempted to treat such a payment as royalty income and ta the same on source rule basis. Such satellite companies do not have any office or presence in (ndia. >nother issue relates to foreign telecasting companies. These foreign telecasting companies do not have any office, business presence or operations in (ndia. Ta assessing officers have been arguing that foreign telecasting companies must have a permanent establishment @-EA in (ndia on account of their agents selling air-time space to (ndia advertisers.
-age 4 of ./

)hile various bilateral conventions for the avoidance of double ta ation do offer a process for re-mediation of double-ta ation issues, cases in past have dragged on for five years or more. The dramatic growth in the number of foreign broadcasting companies involved in double-ta ation dispute cases in (ndia is becoming well-known, and unless it is dealt with soon, it could become a ma2or impediment to the (ndian governmentDs attempt to attract new investors.

-age &5 of ./

.The !ilm Industry

(ndians love to watch movies. >nd advancements in technology are helping the (ndian film industry in all the spheres I film production, film e hibition and marketing. The industry is increasingly getting more corporatised. Several film production, distribution and e hibition companies are coming out with public issues. 8ore theatres across the country are getting upgraded to multiple es and initiatives to set up more digital cinema halls in the country are already underway. This will not only improve the 1uality of prints and thereby make film viewing a more pleasurable e perience, but also reduce piracy of prints.

Introdu"tion #
The year &44. has been an e tremely poor year for (ndian cinema. >ccording to 8r. Ramesh Sippy, a leading film distributor in 8umbai, the

-age && of ./

general success rate of films was as bad as the lowest in the last decade. 45-4<6 of the films have been a losing proposal. *nly films titled Luch Luch Hota Hai, -yar To Hona Hi Tha and Soldier can be termed as the silver linings to the dark clouds. Even big budget films such as ,il Se, :aseeb, ,oli Sa2ake Rakhna and Ludrat have lost heavily. 8r. Ra2 #ansal, a distributor in Ra2asthan attributes this to what he describes as Mthe strong invasion of satellite and video piracyM. The other factors responsible for this debacle, according to 8r. #ansal are poor upkeep of theatres, poor 1uality of films and the decline in the pace of production. >ccording to 8r. #haratbhai Shah, financiers are no longer interested in financing films and production costs are on the increase. >lready there are talks of reducing star prices as well as the cost of production. (ndian cinema has come a long way from the shaky flickering images and grating noises and sounds to a very sophisticated state-of-the-art technology for creation and pro2ection of image and soundtrack. The film industry has grown multi-dimensionally with uni1ue blend of commerce, art, craft, star glamour, social communication, literary ad2uncts, artistic e pression, performing arts, folk forms and above all a wide-ranging and abiding appeal to the heart, the mind and the conscience. The peopleNs lifestyle and sociology have been reflected in the mind-boggling number of %/555 plus feature films and thousands of documented short films in <% different languages making it the largest and most fascinating film producing country in the world - a phenomenon which the world cannot ignore. Today (ndia makes almost .55 feature films every year, making it the largest film producing country in the world. . Sophistication in film making necessarily entails higher cost of production. #udgets in many cases e ceed several million dollars. >n estimated cost of a reasonable budget film is in the region of $S O&./< million. +eading actors like Shahrukh Lhan and Salman Lhan are known to charge in e cess of Rs. %5 million per film. 3one are the days of films such as (ndrasabha which had
-age &% of ./

as many as /& songs in it. Today each song se1uence itself costs several millions of rupees.

-age &; of ./

The $omplete %istory o& Bollywood

The 'inema made an entry in (ndia somewhere around the turn of the century, at a time when the country was on the brink of ma2or social and political reforms. The first e posure to motion pictures came in &.4G, when the +umiere #rothersN 'inematographe unveiled si soundless short films at )atson Hotel, Esplanade 8ansion, #ombay on Buly /. >nd the first e posing of celluloid in camera by an (ndian and its conse1uent screening took place in &.44, when Harishchandra #hatvadekar @Save ,adaA shot two short films and e hibited them under EdisonNs pro2ecting kinetoscope. (n &455, Hiralal Sen and !.#. Thanawalla were two (ndian pioneers engaged in the production of short films in 'alcutta and #ombay. >round &45%, B.!. 8adan and >bdullah Esoofally started the #ioscope shows of imported short films. (n &4&% , :.3. 'hitre and R.3. Torney made a half #ritish silent feature film called -undalik which was released on 8ay &.. ,ada Saheb -halke, or ,hundira2 3ovind -halke, was responsible for the production of (ndiaNs first fully indigenous silent feature film- Ra2a Harishchandra, that heralded the birth of the (ndian film industry. The film had titles in Hindi and English and was released on 8ay ;, &4&; at the 'oronation 'inema, #ombay. (n &4&/, #engal saw the birth of its first feature film- Satyabadi Ra2a Harishchandra made by 8adanNs Elphinstone #ioscope 'ompany. (n 8adras, the first feature film of South (ndia Leechaka ?adham was made by :atara2a 8udaliar in &4&4. (n &4%5, the (ndian cinema gradually assumed the shape of a regular industry which also came within the purview of the law. The new decade saw the arrival of many new companies and film makers. ,hiren 3anguly @England ReturnedA, #aburao -ainter @Savkari -ashA, Suchet Singh

-age &= of ./

@SakuntalaA, 'handulal Shah @3una SundariA, >rdershir (srani, and ?. Santharam were the prominent film makers of the twenties The sound film in (ndia came with a bang, and 1uickly displaced the silent movies. The first (ndian talkie >lam >ra, produced by the (mperial film company and directed by >rdershir (rani was released on 8arch &=, &4;& at the 8a2estic 'inema in #ombay. (t was this talkie that brought about revolutionary changes in the whole set up of the industry. &4;& marked the beginning of the talking ear in #engal and South (ndia. The first talkie films in #engali @Bumai ShasthiA, Telugu @#hakta -rahladA and Tamil @LalidassA were released in the same year. The &4;5s was the decade of social protests in the history of (ndian 'inema. Three big banners--rabhat, #ombay Talkies and :ew Theatres gave the lead in making serious but gripping and entertaining films for all classes of the wide audience. > number of films making a strong plea against social in2ustice were also made in this period, like ?.SantharamNs ,uniya :a 8ane, >admi and -adosi, !ran9 *stenNs >chut Lanya, ,amle " !atehlalNs Sant Thukaram, 8ehboobNs )atan, Ek hi Raasta and >urat. !or the first time >rdeshir (rani attempted a colour picture in &4;/ with Lisan Lanya. The decade also witnessed the release of the first talkie films in 8arathi>yodhiyecha Ra2a, in &4;%F in 3u2rati- :arasinh 8ehta in &4;%F in Lannada,hurvkumar in &4;=F in *riya- Sita #ibaha in &4;=F in >ssamese- Boymati in &4;<F in -un2abi- Sheila in &4;< F and in 8alayalam- #alan in &4;.. The decade of the Second )orld )ar and (ndian independence, was a momentous one for (ndian cinematography. Some of the most memorable films of (ndian 'inema that were produced during the forties were ShantharamNs ,r. Lotnis Li >mar Lahani, 8ehboobNs Roti, 'hetan >nandNs :eecha :agar, $day ShankerNs Lalpana, >bbasNs ,harti Le +al, Sohrab 8odiNs Sikander, -ukar and -rithvi, ?allabh B.#.H. )adiaNs 'ourt ,ancer,

-age &< of ./

S.S. ?asanNs 'handralekha, ?i2ay #hattNs #harat 8ilap and Ram Ra2ya, Ra2kapoorNs #arsaat and >ag. The first (nternational !ilm !estival of (ndia held in early &4<% at #ombay had a great impact on (ndian 'inema. The big turning point came in &4<< with the arrival of Satya2it Ray and his classic, -ather -anchali ,which opened up a new path for the (ndian 'inema, leading it to the )orld !ilm Scene. (nternational recognition came with the 'annes award for the #est Human ,ocument, followed by an unprecedented crop of foreign and national awards. (n Hindi 'inema too, the impact of neorealism was evident in some distinguished films like #imal RoyNs ,o #igha 0amin, ,evadas and 8adhumati, Ra2kapoorNs #oot -olish, Shri-=%5 and Bagte Raho, ?. ShantharamNs ,o >ankhen #arah Haath and Bhanak Bhanak -ayal #aa2e, 8ehboodNs 8other (ndia. The first (ndo-Soviet co-production, -ardesi, by L.>.>bbas and 3uruduttNs -yaasa, and Laga9 Le -hool and #.R. 'hopraNs Lanoon, were also made during the fifties. The transition to colour and the conse1uent preference for escapist entertainment and greater reliance on stars brought about a complete change in the film industry. The si ties was a decade of mediocre films made mostly to please the distributors and to some e tent, meet the demands of the bo office. The si ties began with a bang with the release of L. >sifNs 8ughal-E->9am which set a record at the bo -office. (t was followed by notable productions which include romantic musical and melodramas of a better 1uality. Ra2kapoorNs Bis ,esh 8ein 3anga #ehti Hai, Sangam, ,ilip LumarNs 3unga Bamna, 3uruduttNs Sahib #ibi >ur 3ulam, ,ev >nandNs 3uideF #imal RoyNs #andini, S.8ukher2iNs Bunglee, Sunil ,uttNs 8u2he Beene ,o and the e perimental Paadein, #asu #hatacharyaNs Teesri Lasam, -ramod 'hakravorthyNs +ove

-age &G of ./

in Tokyo, Ramanand SagarNs >r9oo, Sakhti SamanthaNs >radhana, Hrishikesh 8ukher2iNs >ashirwad and >nand, #.R. 'hopraNs )a1t, 8ano2 LumarNs $pkar, and -rasad -roductions 8ilan, were the significant Hindi films of the decade. >mong the regional languages, 8alayalam cinema derived much of its strength from literature during the si ties. 8alayalam cinema hit the head lines for the first time when Ramu LariatNs 'hemmeen @&4G<A won the -residentNs 3old 8edal. Towards the end of the decade, 8rinal SenNs #huvan Shome, signalled the beginnings of the new wave in (ndian 'inema. Satya2it Ray, Ritwik 3hatak and 8rinal Sen were the founding fathers of the new cinema in (ndia. >cclaimed as (ndiaNs foremost director, Satya2it Ray made ;5 feature films and five documentaries, tackling a wide range of rural, urban and historical themes. His cinematography placed him away form the inheritors of the neorealist school, and yet his films were infused with an unusual humaneness. -ather -anchali, >pur Sansar, 'harulata, Balsaghar, 3oopy 3yne #agha #yne, Seemabadha, Bana >ranya, >shani Sanket and >gantuk, are some of his outstanding films. He was fortunate enough to present his films in almost all the leading films festivals of the world. He won numerous national and international awards. Ritwik 3hatak swooped on the (ndian scene with new dynamism. His films constitute a record of the traumas of change form the desperation of the rootless and deprived refugees from East #engal- 8eghe ,haka Tara, >2antrik, Lomal 3handhar, Subarnarekha. 8rinal Sen was the ebullient one, e perimenting with neorealism as well as new wave and fantasy. His notable films are #huvan Shome, 'horus, 8rigaya, Ek ,in -ratidin, >kaler Sandhane, Lhari2 " Lhandahar. He also won several national an international awards.

-age &/ of ./

(n #ombay, a new group of film makers emerged on the Hindi cinema. The notable ones among them are #asu 'hatter2i @Sara >kashA, Ra2inder Singh #edi @,astakA, 8ani Laul @$ski Roti, ,uvidhaA, Lumar Shahani @8aya ,arpanA, >vtar Laul @%/-,ownA, #asu #hattacharya @>nubhavA, 8.S. Sathyu @3aram HawaA, Shyam #enegal @>nkurA, and Lanthilal Rathod @LankuA. (n 'alcutta, following the trend set by Ray, 3hatak and Sen, Tapan Sinha and Tarun 8a2umdar also made some note worthy films. Some of them are Labuliwala, Hatey #a9arey, Harmonium, Safed HaathiF #alika #odhu, :imantran, 3anadevta, ,adar Lirti. The seventies further widened the gap between the multistar big-budgeted films and the off beat films. The popular Hindi hits of the decade include Lamal >mrohis -akee9a, Ra2kapoorNs #obby , ,evarNs Haathi 8ere Saathi, Ramesh SippyNs Sholay, 0an2eer, ,eewar, Lhoon -asina, Paadon Li #aarat, Labhi Labhi, ,haramveer, >mar >kbar >nthony, Hum Lisise Lum :ahin, and 8u1addar ka Sikandar. *f these, the ma2ority of the films were action oriented, with revenge as the dominating theme. ,own in the South, the new wave cinema originated in Larnataka and Lerala. -attabhi Rama ReddyNs ,amskara @&4/5A and >door 3opalakrishnanNs Swayamvaram @&4/%A were the trend setters in Lannada and 8alayalam respectively. This continued with a series of socially conspicuous films like 8.T. ?asidevan :airNs :irmalyam, #.?.LaranthNs 'homana ,udi, 3irish LarnadNs Laadu, 3irish Lasara ?alliNs 3hatasradha, 3. >ravindanNs $ttarayanam and Thamp, L. #alachanderNs >rangetram, >vargal and >poorva Ragangal, >doorNs Lodyettam, L.3. 3eorgeNs Swapnadanam and -.>. #ackerNs 'huvanna ?ithukal and 3.?.(yerNs Hamsageethe The Hindi avante garde, or new wave seems to have reached its bloom period towards the end of the seventies with the coming of film makers like 3ovind :ihalani @>akroshA, Saeed 8ir9a @>lbert -into Lo 3ussa Lyon >ata

-age &. of ./

Hai, >ravind ,esai ki >2eeb ,aastanA, Rabindra ,harmara2 @'hakraA, Sai -aran2pe @SparshA, 8u9afar >li @3amanA and #iplab Roy 'howdhari @ShodhA. The movement spread to the other regional cinemas such as 8arathi, 3u2arathi, >ssamese, *riya and Telugu. ,irectors like Babbar -atel @Samna, SimhasanA, Ramdas -huttane @SarvasakshiA, Letan 8ehta @#havni #havaiA, #abendranath Saikia @Sandhya RagA, Bahanu #arua @>paroopa, -aporiA, 8anmohan 8ohapatra @Llanta >paranha, 8a2hi -ahachaA, :irad 8ohapatra @8aya 8irigaA and 3autam 3hose @8a #hoomiA came to the scene with their films. >lso from the South came film makers such as Bayakantan, Bohn >braham, #harathan, -admara2an, #alu 8ahendra, #harathi Ra2a, T.S. Ranga, T.S. :agabharana, L.R. 8ohanan, 3.S. -anicker, 'handrasekhar Lambar, -.+ankesh, '. Radhakrishnan and #hagyara2, who presented significant films like $nnai -ol *ruvan, >graharathil La9huthai, -rayanam, -eruva9hiambalam and *ridathsoru -hayalvan, Lokila, &G ?ayathinile and Li9hakke -okum Rail , 3ee2egand 3oodu, 3rahana, >swathama, Ekakini, Laadu Ludre, -allavi, >gni, Suvar (llatha 'hithrangal and 8undani 8udichu. The new cinema movement continued with full spirit in. the ne t decade @eightiesA also. Shyam #enegal presented some good movies like 8anthan, #humika, :ishant, Banoon, and Trikal. :ihlaniNs >aghat and Tamas were remarkable works. *ther important films with new style of treatment include ,amul @-rakash BhaA, ;G-'howringhee +ane @>parna SenA, :ew ,elhi Times @Ramesh SharmaA, 8irch 8asala @Letan 8ehtaA, Rao Saheb @?i2aya 8ehtaA, ,ebshishu @$tpalendu 'hakraborthyA, 8assey Saheb @-radeep LishnaA, Trishagni @:abayendu 3hoshA, (2aa9at @3ul9arA, $mrao Baan @8u9afar >liA, ,akhal, -aar @3autam 3hoseA, ,ooratwa, :eem >nnapurana, >ndhi 3ali @#uddhadeb ,asguptaA, >a2ka Robin Hood @Tapan SinhaA, Tabarana Lathe, #annada ?esha @3irish Lasara ?alliA, >ccident " Swamy @Shanker :aagA, ,aasi @#. :arasinga RaoA and -haniyamma @-rema LaranthA.
-age &4 of ./

The new wave masters of Lerala, >door and >rvindan, consolidated their position in the eighties with their films Elippathayam, 8ukha 8ukham, >nantharam, :.LarunNs Esthappan, film -okkuveyil, -iravi@&4..A 'hidambaram, bagged several and *ridath. and Elippathayam won the prestigious #ritish film (nstitute award for &4.%. Sha2i maiden national international awards, and was shown in film festivals. 8eera :air, the young woman director, won the 3olden 'amera award at 'annes for her first film Salaam #ombay in &4.4. (n &445, >door 3opalakrishnanNs 8athilukal won the !(-RES'( and $:('E! awards. The late eighties and early nineties saw the revival of the musical love stories in Hindi cinema. 8r. (ndia, Te9aab, Qayamat se Qayamat Tak, 8aine -yar Liya, 'handni, Tridev, Hum, 3hayal, Saudagar, Rakhwala, Bo Beeta )ohi Sikander, Hum Hain Rahi -yarke, #aa9igar, >aina, Peh ,illagi, Hum >pake Hai Laun, Lrantiveer, Ra2a and Rangeela were some of the popular Hindi films of the last decade. The first half of nineties witnessed the release of some better films in Hindi as well as in other regional languages. ,rishti and ,rohkal @:ihalaniA, +ekin @3ul9arA, ,isha @Sai -aran2peA, -rahar @:ana -atekarA, -arinda @?inod 'hopraA, ,iskha @>run LaulA, Lasba @Lumar ShahaniA, Rudaali @Lalpana +a2miA, 8aya 8emsaab @Letan 8ehtaA, 8u2hse ,osti Laroge @3opi ,esaiA, Sura2 La Satwan 3hoda " 8ammo @#enegalA, )ho 'hokri @Subhankar 3hoshA and Ek ,octor Li 8aut @Tapan SinhaA, were some of the notable Hindi films. !rom #engal, *rissa, >ssam and 8anipur came films like Tahader Latha, #agh #ahadur, 'harachar @#uddhadeb ,asguptaA, $ttoran @Sandip RayA, )heel 'hair @Tapan SinhaA, $nishe >pril @Rituparno 3hoshA, >di 8imansa, +alvanya -reethi @>.L. #irA, :irbachana @#iplab Roy 'howdhariA, Halodhia 'horaya #aodhan Lhai, !iringoti @Bahau #aruaA, Haladhar @San2eev Ha9arikaA, and (shanou @>ribam Shayam SharmaA.

-age %5 of ./

The South 8alayalam 'inema presented some notable films. They include ?asthuhara @>ravindanAR, ?idheyan @>doorA Lireedom, #haratham @Siby 8malayilA, >maram @#harathanA (nnale @-admara2anA, *ru ?adakkan ?eeragatha, Sargam, -arinayam @HariharanA, ,evasuram @(..?.SasiA, Lilukkam, Thenmavin Lombath @-riyadarsanA, -erumthachan @>2ayanA, ,aivathinte ?ikurthikal @+enin Ra2endranA, 8anichithratha9u @!a9ilA, -onthanmada @T.?. 'handranA and Swaham @Sha2iA. !rom the Tamil and Telugu cinema there came films like >n2ali, Ro2a and #ombay :arayana @8ani RaoA, RatnamA Swathi ,8arupakkam @#harathi Ra2aA, and :ammavar @,asari 8ul 8ogha @SethsumadhavanA,Laruthamma @3.Ra2asekharanA etc. English film like 8iss #eattyNs 'hildren @-amela RooksA, and English >ugust @,ev #enegalA were also produced during this period. >ll in all, it has been a long story of nearly nine decades, with the early shaky screen images turning into a multi pronged and multi winged empire of its own, that has yielded about %/,555 feature films and thousands of documented short films. 'inema has raised (ndiaNs flag high in the world as the consistently largest film producer. #ut when it comes to 1uality the flag has to fly half mast. Surigadu

Liranam

@L.?iswanathA,

-age %& of ./

!ilm Produ"tion and !ilm Promotion

The entire process of film production is intertwined with a number of other aspects that make the film what it is. There is no set pattern or chronological order in the making of a film. There are a large number of permutations and combinations that can be possible. The whole process is so fluid that it cannot be bound to a set structure. The film generally starts on an idea, or a story. >ny one person takes the initiative and a team- maybe consisting of the director, the producer, the music director and the writer, is put into place. The remaining team of the artistes, singers, cameramen and others is also decided.

Film Finance The finance for the film can come from a variety of sources. The first and foremost source is the financier. There are a number of people in the film industry whose only work is to finance films. They are mostly diamond merchants, brokers, builders and other people who have a lot of li1uid cash that they can spare. 3enerally it is in the range of ;-=6 per month, thus accruing to appro imately ;G-=.6 per annum. The second source of finance is the banks. They finance to the tune of <56 appro . *nly to viable pro2ects if they are backed up by established and reputed production houses having a good track record. Earlier, since funds are not easily available for the producer, leaving aside the financiers, who are e tremely costly, they fell an easy prey for the circulation of black money. This is where the underworld mafia also has a scope to enter. (t has been estimated by industry sources that appro imately ;5-;<6 of the films that were made were financed by the underworld. This number has been generally reducing over the past few years.

-age %% of ./

:ot only this, but the circulation of black money has also become increasingly prominent. 8ost of the stars, who command a high fee, do not take their entire payment in white money in order to escape the ta es. &<%56 of the income is always paid in terms of black money. #esides this, all the payments made in the course of production of the movie, from the payment to and from the financiers, the transactions with the distributors, the music companies, the star cast and so on and so forth, all have an element of black money in them. The third source of legitimate funds comes from the distributors. The movie can be sold to the distributors at any stage of its production- at the beginning, in the middle, or at the end of the production. !or big banners, for e ample for a PashRa2 film, the day the film is announced or launched, the distributors are willing to invest in it. That simply shows the confidence in the banner or any other aspect of the movie. #ut in the case of these big names, the producers, depending on their need of money, contract with the distributors. This is because as the movie proceeds it fetches more money than it would have in the beginning. (n case of a lesser known banner, the movie is generally sold at the end of its production. >t times the distributors might even ask to see a part of the movie in order to decide its worth. >t this stage the movie, in certain cases comes under the influence of the distributors. (f after watching the movie, the distributors feel that the movie would do commercially better if some changes, such as adding or deleting a song and dance se1uence or an action se1uence, then they generally put pressure on the small producers to comply.

-age %; of ./

Film Production*nce the producer has made the necessary arrangements for the finance of the movie, the production can start. Some of the artistes that work on the sets are paid on an everyday basis, some on an hourly rate, and some on a schedule basis. The e tras and the dance troupes are generally paid on an everyday basis. The cameramen, technicians and other members of the crew have monthly contracts. The star cast of the movie takes a staggered payment- partly upfront, some during the course of the movie and the ma2ority on the completion of the movie. The biggest problem that the producer faces during the course of production is that of managing the dates of the star cast. (t is generally due to this reason that the shooting of the movie gets prolonged. >fter the production is complete, which might also include out-station shooting, the film is edited and the dubbing is done. The film is now ready to be e hibited. The entire process of film production is a very unorgani9ed concept in (ndia. +ast minute changes occur in the films due to lack of infrastructure and planning. >t times shootings get cancelled due to the whims and fancies of the actors. (n case there are some changes to be made in the film, sometimes the dates for the star cast are impossible to get and the film gets delayed.

+ies with the 'usic !ompanyThere are various types of contracts that the producer can have with the music company. (n case of reputed companies and big star cast films, the music rights also mobili9e money. *ne way it is done, is through an outright purchase of the music rights of the film by the music company.

-age %= of ./

The e change of money can take place either in a lumpsum manner or in a phased manner. )hen the producer is confident of the success of the music, the music rights are not sold on an outright basis. (nstead a minimum guarantee @83A is taken by the producer, over and above which a royalty is also paid to the producer. (n the past, no money used to be paid for the music rights by the music company. They would 2ust pay a royalty after the release of the movie. This changed when Pash 'hopra was paid an 83 of Rs./.< lakhs and then a royalty as well. !or Dilwale Dulhania Le Jayenge, H8? paid Pash 'hopra Rs.& crore, which was increased to Rs.=.< crore for Dil to Pagal Hai. :ot only that the royalty also took a 1uantum leap, rising by almost &5 times. These days the producers also generate revenue tfrom other media such as mobile downloading, internet and fm radio. >ksar, for e ample, a film by Shyam #a2a2, generated revenue to the tune of /< lakhs only through mobile and ring tone downloading #esides paying for the musical rights of the film and the royalty, the music companies also spend on the promotion of the music on various media fronts like television, radio, internet, etc. The amount spent on the promotion is decided 2ointly by the music company and the producer.

+ies with the )istributor>s was mentioned earlier, the distributors can come in at any stage of production of the film. The process of distribution of a film in (ndia is divided among a number of producers on the basis of the territories. !or the purposes of film distribution, (ndia has been divided into si territories7

-age %< of ./

The #ombay -residency which includes parts of 8aharashtra upto :agpur, 3u2arat, Saurashtra, Larnataka and 3oa. The ,elhi-$- territory. The Eastern 'ircuit which includes )est #engal, >ssam, *rissa, #ihar and :epal.

'.- ie, 'entral -rovincesS #erar which includes some parts of 8adhya -radesh, and '.( vi9 'entral (ndia, that is the remaining 8adhya -radesh, and Ra2asthan.

East -un2ab which is -un2ab, Haryana, Himachal -radesh and Bammu " LashmirF

South, i.e. 8ysore, Tamil :adu and >ndhra -radesh and :i9am, which includes Hyderabad and Secunderabad.

The amount paid by the distributors for each of the above si territories is not the same, nor is it based on any rigid format. (t is more or less based on a very fluid system of percentages. !or e ample if the #ombay territory fetches appro imately Rs.&5 crores, then the ,elhi- $- territory will also fetch appro imately the same amount and so will '-, '( and Ra2asthan put together. The East -un2ab territory will fetch appro imately =56 of the price for which it was sold in #ombay, the South territory fetches appro imately <56, while :i9am gets about %<6 of the original value. The contract between the producer and the distributor can also be that of an 83, where the distributor pays the producer a minimum guarantee, and when he recovers that, including all the other e penses he has incurred on the film, all the revenue over and above that is shared between the distributor and the producer in the decided ratio.

-age %G of ./

There is no single distributor or a distribution company that undertakes the distribution of films on an >ll-(ndia level. The only -an (ndian distributors are the Ra2shree -roductions, Pashra2 !ilms, $tv 8otion -icturres, Sahara *ne and -ercept -icture 'ompany and a few others. *verseas distribution of films is a completely different territory. There is a completely different set of distributors that handle this segment. 3enerally the overseas distributors buy the rights for overseas distribution of the film at an outright price, which is almost e1ual to the price paid for the #ombay territory. >t times, depending on the set of artistes involved, the price paid for the movie can be less as well. !or instance, it has been seen that the 3ovinda movies do well in (ndia, but do not have a great audience overseas, their overseas rights are ac1uired at a lower rate. *n the other hand, if a Shah Rukh Lhan 8ovie is very much in demand abroad, the distributors have to shell out almost double the money than the 8umbai territory. The overseas distributors have their offices in (ndia and approach the producers in a similar way as the local distributors. The producer might contract with a single distributor for complete overseas distribution, or might divide them into further territories. The overseas distributors pay the producers in rupees, and there is no e change of foreign currency. >ll the prints that get e ported are manufactured by the producer and supplied to the distributor. :o negatives are given to the distributor.

Promotion of the Film3enerally,the marketing process of the film starts appro imately a =< days before the release of the music of the film. >t this stage, promotion is basically done through print ads, posters, billboards and signboards. Since the music has not been released as yet, no trailers of the movie can be shown and hence the television and satellite media cannot be used. #ut the

-age %/ of ./

latest concept catching on in the (ndia film industry is that of showing snippets on television regarding the making of the movie. *nce the music gets released, trailers of the film start appearing on the various channels. The basic of the promotion at this stage is to create awareness about the movie in the public, so as to stimulate the curiosity to watch it. >n effort is also made to popularise the music of the film and generate as much revenue as possible for the music companies. To achieve this end, the music companies and the producers both sit down and earmark a rough figure for the marketing of the movie. 8ost of the times the music company does the complete promotion for the film, and sometimes the work is shared between the company and the producer. The music companies generally buy spots on the channels in a 1uantity in the beginning of the year itself. These slots are used for the advertising of all the music albums they release. Hence, out of these slots, a fi ed number or percentage gets allotted for the film. (f it is felt that the film needs to be given more than the normal share of publicity, then more slots are bought for it. *bviously, these turn out to be more e pensive in nature. (t is believed that there should be a time gap of appro imately %-; months between the release of the film and that of the movie. This is because in this way the track of the film gets a chance to reach its peak without any bias whatsoever. >lso once the film is released, the fate of the film at the bo office has a great effect on the sales of the music. (n case the film does well, then even an average soundtrack benefits. #ut in case the movie flops, the music sales are also affected. 8oreover it is an ideal time period to build up the re1uired speculation and hype of the film. (n case this gap is increased, by the time the movie releases, the curiosity in the mind of the audience dies and it is perceived to be an old film. The most current e ample of this is that of the film Sandwich. (t was slated for a

-age %. of ./

release sometime last year and a large amount of money was also spent on the promos of the film. #ut for reason it was delayed and has not been released to date. Since the trailers of the movie were on air 1uite some time back, even if the movie is releasing soon, it will not generate the kind of response that it would have, had it been released earlier. (f the movie is released before time, the soundtrack of the film does not have ample time to reach its peak and generate revenues for the music company. !or instance, in the case of 3angster and 'hup 'hup Le, the movies got released appro imately %5 days after the release of the music. Even though the music of the film was reaching great heights, when the film got released and didnDt do well on the bo office, it had a negative effect on the music. >s regards the promotion of the movie in the foreign markets, the entire e penditure is generally borne by the overseas distributor. This includes promos on the local channels and the radio. Even after the movie is released, the promotion is carried on for three to four weeks to stimulate the demand for it, only this time the promos are lengthened to include some scenes as well. ,epending on how the film fares at the theatres across the country, the promotion is changed accordingly. (n case the film is doing very well, the promotion is kept upF if it is felt that the film has the potential to do better than its current rakings, the promotion might even be increased accordinglyF but if the movie fails to well at the theatres, and gets re2ected by the audience, its promotions are gradually phased out. !or e ample when Dil To Pagal Hai was released, it did not do very well in its first week. #ut its promos were kept up, and by the second week it started to do e tremely well. (n this case H8?, which had the music rights, increased the music promos and carried them on for 1uite a long time. This had a boosting effect on the sales.

-age %4 of ./

'ovie 'a(in) Pro"ess

Idea Generation

Film Finance Artist & Technicians Selection

Post-Production

Film Production

Ties with Music Company

Ties with Distributors

Films Censorin

Film Mar!etin

"eleasin Film

-age ;5 of ./

+iming of a .eleaseThe producers go to great e tent to release their film at a crucial time when the audience is in a festive mood. !or instance, :ew PearDs, ,iwali, 'hristmas etc are considered to be good times in the year to release the film. E cept for the big banner movies, which attract a huge crowd anytime in the year, most of the movies are released during festivals and holidays. !or e ample, Lrishh, a !ilm by Rakesh Roshan, was released on %; rd Bune. (nspite of schools and colleges having been reopened, the theatres were flocked and almost all shows in the first week were full, on the other hand, 8alamaal )eekly, a !ilm by -riyadarshan, was released somewhere in >pril and did e tremely well inspite of being a low budget movie. >t times the other films that are released around the same time also affect the fate of a film. So every producer tries to see to it that there are as less hyped or big budgetS banner films around when his film gets released. !or e ample, -hir Hera -heri and 'hup 'hup ke were stated for release together. #oth the movies were released in summer. (nspite of 'hup 'hup Le getting better reviews, it made a loss in the first week and made a collection below e pectations.

/o, 0ffice 1its and FlopsEven though this concept of a hit and a flop is very widely prevalent these days, it is very difficult to define what a complete hit and a complete flop film is. >t times the movie gets very good reviews but fails to make the re1uired collection and thus fails at the bo office.

-age ;& of ./

!or E ample7 THE TR$TH I P>TH>RTH, received ;.< star ratings in almost all news papers. (t also received ; awards at international and was nominated at the national level. #ut due to an unfamiliar starcast and being a serious parallel cinema, it did not do well at the bo office. *n the other hand, >nthony Laun Hai, with a very popular pair, did e tremely well at the bo office inspite of the bad reviews. 8ost film related people make the following classifications @on a film that is sold for appro . Rs.& croreA7

Position of the film > disaster 7 a complete flop > flop > loser > money-backS average film > commission earner >n overflow > semi-hitS heavy overflow > hit > super hit > blockbuster

2hen its earnings are$ T Rs.%< lakhs Rs. %<- <5 lakhs URs.<5 lakhs Rs.& crore Rs.&-&.% crores U Rs.&.% crores Rs.&./<-&.. crores Rs.% crores Rs.;-= crores U Rs.< crores

-age ;% of ./

3 Film Life !ycle

> !ilmDs life cycle is little different from a normal -+' I -roduct +ife 'ycle. (n case of movies, ma imum revenue is generated at the time of release @product launchA and gradually it reduces. #ecause of the pace of information e change, the overall film life has also reduced as seen from the figure below. >s more and more people watch the movie and give reviews to their peer group, inclination to watch a movie increases or decreases depending upon positive or negative review respectively. >ccording to a study, effect of movie reviews by criti1ues @in popular news papers or web-sites or maga9inesA is also seen on the bo office collection.

-age ;; of ./

Present Scenario

R E V E N U E

Historical Scenario

Time

'ar(et*share +evenues and +evenue ,istri-ution

0ther 1indi 0thers &4 24 /engali 14

+elugu 1"4

1indi 'ainstream 34

+am il 1%4 !ross$over 1indi 24

'alayalam 154

Foreign 24

-age ;= of ./

8ain revenue generator is Hindi mainstream cinema, followed by South (ndian regional cinema. Recently, 'ross-over Hindi cinema has picked up the pace with the urban cinema patrons. The genre is going to be the ne t big thing in (ndia and >broad as well. > part of our business is going to focus on this particular aspect.

Leakage6Piracy 1 4 'usic 24 (n !inem a 3ds 24 8atellite6)+16(P +7 *4 )7)67!)6 0verseas cable 4 0verseas +heatrical 124 )om estic +heatrical "%4

The industry realises almost /5 percent of its total revenues @around .5 percent of legitimate revenuesA of (:R <4 billion from domestic and overseas theatre viewership, unlike in countries like the $S which earn only ;< percent of revenues from theatre viewership while the remaining G< percent is derived from other revenue sources such as ,?,S ?HSS cable, satellite, pay-per-view, etc.

-age ;< of ./

Pira"y o& !ilms and $opyri)ht .aws

The piracy of films is a big business in (ndia. >t times the pirated copies of the films are available in the market even before the scheduled release of the film. (t was estimated that the film industry lost appro imately $SOGG million in &44., which was .56 of its total earnings. The same was the situation in &44/. The situation has comparatively improved from that in &44G when the estimated level of losses was .<6, down from 446 in &44<. (t has been found that in the process of making copies of the negatives of the film, from the lab to the time it reaches the final e hibitor, at each step of the way, the pirates have found ways to copy the film. *ne distributor even remarked that while the reels are being transported from one place to another in (ndia via train, the copies have been known to be made at that time as well. >n attempt to control piracy was made by Ra2shree -roductions +imited during the time of the release of the blockbuster Hum >apke Hain Loun. (t was announced that each and every print of the movie was being given a serial number, which would reproduce with every copy of the film made. Thus if any pirated copies were released, it would be very simple to trace its source. >ll the e hibitors were told that the print given to them was their responsibility, and if any copies were found of that print, he would be held responsible. >s a result of all these steps that were taken, there were no pirated copies that were made of the copies that were distributed in (ndia. (nstead, the pirated copies that were available were traced to a source outside (ndia. Even though no action was taken against the person concerned, he was warned, it gave the company a good idea of the leak in the system.

-age ;G of ./

The film industry in (ndia today is facing its biggest threat, that of piracy. This includes, cable piracy, ?'R piracy and its new avatars, +, and ?', piracy. The development of these new forms @?',s and now ,?,sA is a double edged sword. )hereas, on the one hand they provide for additional sources for commercial e ploitation of the film, on the other hand, the ease with which they can be copied, reproduced and disseminated to the public, is giving the film industry nightmares. !ilms appear on cable without any authority whatsoever, almost as soon as they are released in the theatres. Hollywood films are released in (ndia after a few months of their international release. This results in copies of the film being brought into (ndia and released on these formats even prior to their theatrical releases. *verseas rights of (ndian films are sold almost simultaneously along with the release in (ndia. !ilms are copied and then VpunchedN on #eta recording machines abroad from where they are then copied on to ?',s. Several copies can then be made, which find their way back into (ndia. (n the film industry, the practice is to release the film on its completion, first in theatres andSor cinema halls. Subse1uently the film is released in other formats and media such as video, cable and satellite. This distribution strategyS system of release within the film industry is commonly referred to as M)indowsM. (f the distribution strategy involves theatrical release as the first window, it is vital that the film be available to the public only at the theatres. *nce the film has run its course at theatres S cinema halls, the film is generally released through a second window which is normally in the form of home videos. Thereafter the stage is set for releases of the film through its other windows and media. The time gap between each window is of utmost importance. >t each stage it is important to protect the film from being distributed on any other media, e cept on media as selected by the distribution strategy. This is absolutely critical for the success of the film.

-age ;/ of ./

&4;& may have been the genesis of the talkie feature films in (ndia when the film >lam >ra was released, but &44. appears to be the genesis of the talking @or even shoutingA film producers. Ra2a Harishchandra, the hero of (ndiaDs first feature film, is now being asked to uncover his sword against piracy.

!opyrights Laws (n (ndia )ith the advancement of technology, 'opyright laws in (ndia have also been changing to keep pace with the times. The 'opyright >ct, &4</ was enacted and came into force on the %&st of Banuary &4<.. (n its *b2ects and Reasons the legislature recogni9ed that Mnew and advanced means of communications like broadcasting, litho-photography, etc.M call for certain amendments in the e isting laws @'opyright >ct, &4&&A. The legislature also commented that Made1uate provisions have to be made for fulfillment of international obligations in the field of copyright which (ndia must acceptM. (t is in this year @&4</A that cinematograph films derived separate copyrights apart from its various components, namely, story, music etc. The laws have thereafter been sub2ected to certain changes. (t was >mending >ct G< of &4.= which specifically addressed the issue of piracy. The Statement of *b2ects and Reasons to the amendment acknowledged piracy as a Mglobal problem due to the rapid advances in technologyM. #esides addressing the loss in the form of royalties to the legitimate copyright owners, the legislature also reali9ed the losses to the e che1uer by way of ta evasion. 'ertain relevant portions from the *b2ect and Reasons for the amendment are reproduced below7 Recorded music and video cassettes of films and T? programmes are reproduced, distributed and sold on a massive scale in many parts of the world without any remuneration to the authors, artistes, publishers and producers concerned. The emergence of new techni1ues of recordings,
-age ;. of ./

fi ation and reproduction of audio programmes, combined with the advent of video technology has greatly helped the pirates. (t is estimated that the losses to the film producers and other owners of copyright amount to several crores of rupees. The loss to 3overnment in terms of ta evasion also amounts to crores of rupees. (n addition, because of the recent video boom in the country, there are reports that uncertified video films are being e hibited on a large scale. > large number of video parlors have also sprung up all over the country and they e hibit such films recorded on video tapes by charging admission fees from their clients. (n view of these circumstances, it is proposed to amend the 'opyright >ct, &4</, suitably to combat effectively the piracy that is prevalent in the countryM (n its effort to address the above issues, by way of the amendments, the following changes were incorporated in the >ct, namely . 7-The punishment provided for the infringement of the copyright was enhanced to a ma imum of three years, with a minimum punishment of imprisonment of si months, and a fine upto to Rs. % lakhs, with a minimum of Rs. <5,555S-.F >n enhanced punishment in the case of second and subse1uent convictions was also provided for F The provisions of the >ct were now specifically made applicable to video films and computer programmes. The producers of records and video films were now under a statutory obligation to display certain information in the records, video films and containers thereof, which included the name of the copyright owner, year of first publication etc. (ndiaNs new copyright law, passed in Bune &44=, became effective on 8ay &5, &44< and establishes an entirely new potential for reducing piracy in (ndia. >ccording to the Statement of *b2ect and Reasons, the legislature recogni9ed that Meffective copyright protection promotes and rewards human
-age ;4 of ./

creativity and is, in modern society, an indispensable support for intellectual, cultural and economic activity. The legislature further recogni9ed that copyright law promotes the creation of literary, artistic, dramatic and musical works, cinematograph films and sound recordings by providing certain e clusive rights to their authors and creators. (t was felt that the present >ct needs revamping on the following grounds7 To e tend more effective protection to owners of copyright and related rights in the conte t of technological developments affecting the reproduction of words by, inter alia, bringing within the scope of copyright the subse1uent hire or sale of copies of cinematograph films, computer programmes and sound recordings. To further clarify the law in respect of cable, satellite and other means of simultaneous communication of works to more than one household or private place of residence, including the residential rooms of a hotel or a hostel. To make provisions for licenses whereby the reproduction of works by reprographic e1uipment or by means of devices such as tape recorders and video cassette recorders, where such reproduction would not under the e isting law be infringement of copyright, shall be sub2ect to payment or remuneration to copyright owners by means of a levy on such e1uipment. The law protects cinematograph films as a distinct work, giving the producer of the film the e clusive rights. To make a copy of the film, including a photograph of any image forming part thereof.

-age =5 of ./

To sell or give on hire, or offer for sale or hire, any copy of the film regardless of whether such copy has been sold or given on hire on earlier occasions.

To communicate the film to the public. (ndia, being a member of two of the ma2or copyright conventions of the world @The #erne 'onvention and The $niversal 'opyright 'onventionA, (ndian works and works of (ndian authors are accorded copyright protection in all ma2or countries of the world. +ikewise, foreign works and works of foreign authors are accorded the same protection as (ndian works. (n addition to the law bringing (ndia newly into compliance with its substantive TR(-S obligations in the copyright area, the law provides for new minimum criminal penalties including a mandatory minimum 2ail term which, if implemented, will go far to controlling piracy.

(nterpretation 0f +he Laws /y +he 9udiciary The (ndian 2udiciary has also come forward to protect copyrights. The importance of copyright laws was aptly enunciated by HonDble !a9al >li, B. of the Supreme 'ourt of (ndia in R.3.>nand ?s ,elu !ilms. The court held7 (t seems to us that the fundamental idea of violation of copyright or imitation is the violation of the Eighth 'ommandment7 MThou shalt not stealM which forms the moral basis of the protective provisions of The 'opyright >ct.M The Supreme 'ourt, as far back as in &4/. recognised that copyrighted materials are prepared after e pending a great deal of labour, energy, time and ability. (f any other person is allowed to appropriate the labours of the copyrighted work, his act amounts to theft by depriving the original owner of the copyright of the product of his labour.

-age =& of ./

'ommenting specifically on motion pictures and sound recordings, L Ramaswamy " 3.#.-atnaik BB, of the Supreme 'ourt in State of >ndhra -radesh :agoti ?enkataramana, while commenting upon the &4.= amendments in The 'opyright >ct held7 MThe ob2ect of amending The 'opyright >ct by >ct amendment G< of &4.= was to prevent piracy which became a global problem due to rapid advances in technology. The legislature intended to prevent piracy and punish the pirates protecting copyrights. The law, therefore, came to be amended introducing Section <%>. Thereafter, the piracy of cinematograph films and of sound recordings etc. could be satisfactorily prevented. 8oreover, the ob2ect of the pirate is to make 1uick money and avoid payment of legitimate ta es and royalties. The uncertified films are being e hibited in a large scale. 8ushrooming growth of video parlours has sprung up all over the country e hibiting such films recorded on video tapes by charging admission fee from the visitors. Therefore, apart from increasing the penalty of punishment under law it also provides the declaration on the offence of infringement and video films to display certain information on the recorded video films and containers thereof.M The court thereafter went on to give its finding that7 M(t is unnecessary for the prosecution to track on and trace out the owner of the copyright to come and adduce evidence of infringement of copyright. The absence thereof does not constitute lack of essential element of infringement of copyright. (f the particulars on video films etc. as mandated under Section <%> do not find place, it would infringement of copyright.M (n a country where the authorities in charge of enforcement of laws are understaffed and overworked, it is for the owner of the rights to continuously look for new means of enforcement. $nusual situations demand
-age =% of ./

e traordinary remedies. (t is in this regard that the ,elhi High 'ourt on 8ay %5, &44. in two different orders restrained cable operators from e hibiting the film Bab -yaar Lissi Se Hota Hai on their cable networks. The producers of the films in their suits claimed ownership of copyrights in the cinematograph film Bab -yaar Lissi Se Hota Hai and alleged that there is a reasonable apprehension that the defendants in the action as well as over &%5 other cable operators will e hibit this film on their cable networks without any rights. (n addition to the prayer of in2unction the producers argued that the cable operators are well aware that it is very difficult to collect evidence in case they e hibit a film through their cable network. >ssistance of the court was sought in enforcement of the order of in2unction and in sei9ing and securing incriminating material. *n this prayer ?i2ender Bain B. of the ,elhi High 'ourt appointed +ocal 'ommissioners for various territories of ,elhi with a direction that in the event of receiving information either from the plaintiff or their authorised representatives, the +ocal 'ommissioners should immediately proceed to the premises of the cable operator, serve a copy of the in2unction order of the 'ourt and direct the cable operator to cease and desist from e hibiting the film. The +ocal 'ommissioners were also directed to sei9e and secure all incriminating material found at the premises of the cable operator. Two weeks earlier '.8.:ayar B. of the ,elhi High 'ourt had passed similar orders against the cable operators restraining them from e hibiting the film Lareeb of the -roducer 8r. ?idhu ?inod 'hopra. +ater, in the same case, Ramamoorthy B. of the ,elhi High 'ourt on Buly %, &44. passed Bohn ,oe orders against cable operators in general. The court appointed +ocal 'ommissioners with authority to conduct raid and sei9ure operations against any cable operator found e hibiting the film Lareeb.

-age =; of ./

These orders came as a breath of fresh air for the largest film industry in the world and which has been crying hoarse since the last many years, and has repeatedly voiced its concerns over cable piracy. Several other producers 2umped in and sought and obtained similar orders from the court.

-age == of ./

Enforcement of !opyright Law >lthough (ndian copyright laws have kept up with the times and the higher level of the Budiciary has treated copyright enforcement issues effective, at the lower 2udiciary level, copyrights remain at low priority. The 3overnment has initiated some measures to strengthen the enforcement of copyright law, but a whole lot more needs to be done on this front. Enforcement of the 'opyright +aw beyond raids is impeded by the overburdened court system, which can take up to seven years to complete a criminal case, making the strong mandatory sentencing provisions of the +aw illusory. The delay in bringing cases forward remained unchanged in &44/. There were, however, two notable e ceptions. (n 8ay &44/, a ,elhi 8agistrate sentenced a cable operator to si months imprisonment, to be served in hard labor, and ordered a fine of Rupees <,555 @O&=5 $SA. This marked the first conviction of a cable operator in (ndia. (t was reported that after this case there was a substantial reduction in the cable transmission of pirated material by ,elhi cable systems. (t can therefore be said that the +awNs deterrent effect will work, if used properly. (n Banuary &44/, a magistrate in the #angalore 'ourt sentenced a video pirate to three years hard labor in a &44; case. >lthough the case took four years to complete, this sentence should also act as a deterrent. #oth of these cases followed the standard of the new 'opyright +aw in that minimum sentences of si months to three years in prison were imposed. The ma imum fine of Rupees <,555 @$SO&=5A was not imposed because these two cases pre-dated the 'opyright +aw amendments, and the provisions were not made retroactive. However, it was a positive sign that the 2udges, though not bound by the provisions of the new 'opyright +aw in these cases, did impose prison sentences.

-age =< of ./

(n addition to trial delays, there are procedural and evidentiary hurdles deterring effective enforcement. 'opyright ownership and the defendantNs Mactual knowledgeM of infringement still must be proved. -erhaps the laws need to be amended to include statutory presumptions of copyright subsistence and ownership and a re1uirement that the defendant merely Mknew or reasonably should have knownM of the infringement which is the normal standard of proof. Regarding the presumption of copyright ownership, as mentioned earlier, the Supreme 'ourt of (ndia created a presumption of copyright infringement if video cassettes do not carry censor certificates declaring copyright ownership and identifying the producer. The government has initiated some measures for better enforcement of copyright laws. > summary of some of these measures is given below 7 The ,epartment of Education, 8inistry of Human resource ,evelopment, and 3overnment of (ndia has constituted a 'opyright Enforcement >dvisory 'ouncil @'E>'A. The 'E>' is reconstituted from time to time to review periodically the progress of enforcement of the 'opyright >ct and to advise the government on measures for improving the enforcement. 'reation of separate cells in state police head1uarters. Special cells for copyright enforcement have so far been set up in the following %; States and $nion Territories7 These are the States S $nion Territories of >ndhra -radesh, >ssam, > ": (slands, 'handigarh, ,adra " :agar Haveli, ,aman " ,ue, ,elhi, 3oa, 3u2arat, Haryana, Himachal -radesh, Bammu " Lashmir, Larnataka, Lerala, 8adhya -radesh, 8eghalaya, *rissa, -ondicherry, -un2ab, Sikkim, Tamil :adu, Tripura and )est #engal. States have also been advised to designate a nodal officer for copyright enforcement to facilitate easy interaction by copyright industry organi9ations and copyright owners.

-age =G of ./

Encouraging

setting

up

of

collective

administration

societies

and

organi9ation of seminars and workshops to create greater awareness about copyright law among the enforcement personnel and the general public. !or collective administration of copyright, copyright societies are set up for different classes of works. >t present there are three registered copyright societies. These are the Society for 'opyright Regulations of (ndian -roducers of !ilms " Television @S'R(-TA for cinematography films, (ndian -erforming Rights Society +imited @(-RSA for musical works and -honographic -erformance +imited @--+A for sound recording

!entral /oard of Film !ertification (n (ndia, films can be publicly e hibited only after certification from the 'entral #oard of !ilm 'ertification @ '#!' A. The board was set up under the 'inematograph >ct, &4<%, and consists of a 'hairman, and %< other non - official members, all appointed by the 3overnment. The board has its head1uarters at 8umbai, and 4 regional offices at #angalore, 8umbai, 'alcutta, Hyderabad, Thiruvananthapuram, 'hennai, :ew ,elhi, 'uttack and 3uwahati. The 3uwahati office was inaugurated on = !ebruary, &44G. The regional offices are assisted in the e amination of films by the advisory panels which comprise of eminent personalities from various fields. 8r Shakti Samanta, a renown film - maker continues to be the 'hairman of the #oard. The #oard was reconstituted on / 8arch, &44G. The films are e amined for certification in accordance with the provisions contained in 'inematograph >ct &4<%, 'inematograph @ 'ertification A Rules &4.; and the guidelines issued by the 'entral 3overnment in this conte t. !ilm 'ertification >ppellate Tribunal @ !'>T A set up in 8arch &4.=, hears appeals against the decisions of the '#!'. The tribunalNs head1uarters are at :ew ,elhi.

-age =/ of ./

 Films )ivision The 8inistry of (nformation and #roadcasting over the last =/ years through an e clusive !ilms ,ivision, set up in &4=., has been securing the active participation of the public in nation building activities, through the medium of film. The largest agency dedicated to the production, and distribution of documentaries and news agencies, the !ilms ,ivision produces news maga9ines from its head1uarters at 8umbai, films on agriculture, defence and family welfare from ,elhi and featurettes from its regional centres at 'alcutta and #angalore. The ,ivision caters to more than &%,4&& cinema theatres allover (ndia and to non - theatrical circuits like units of the ,irectorate of !ield -ublicity, mobile units of the State 3overnments, ,oordarshan, field units of the ,epartment of !amily )elfare, educational institutions and voluntary organisations. The ,ivisionNs films are also screened abroad through the (ndian embassies, television networks, 3overnment departments, educational, cultural, and social organisations as well. The ,ivision aims to foster the growth of the documentary film movement - which is essential to the realms of information, communication and integration. The ,ivision has been given the responsibility of organising the 8umbai (nternational !ilm !estival for ,ocumentary, Short and >nimation films, which is a biennial event. The fourth 8umbai (nternational !ilm !estival was held from %4 Banuary to < !ebruary &44G. << countries participated in the festival which had a total of %45 films in different categories. The ,ivision has produced more than ;555 films, and through its annual production of around &%5 short films, <% national newsreels and <% regional newsreels, it has successfully been depicting and recording the contemporary scenario of the country. The ,ivision has e change agreements with %& foreign newsreel organisations for free e change of important international news events.

-age =. of ./

 :ational Film )evelopment !orporation Limited The :ational !ilm ,evelopment 'orporation +imited @:!,'A set up on && >pril, &4.5 aims at bringing an overall improvement in the 1uality of (ndian cinema and also increasing its access. >s films constitute a vital segment of audio - visual culture, :!,' covers a large gamut of activities - production of films, e port of (ndian films, import of foreign films, import and distribution of raw stock, construction of cinema theatres and development of technology. The 'orporation promotes the concept of low - budget yet high 1uality films, which is a possible solution to the financial problems faced by the film - makers of the country. :!,' undertakes production of films based on good scripts, to be directed by renowned directors. The 'orporation imports about %5 to ;5 films annually for theatrical release. (ndia e ports films to over &55 countries. (t participates in various international film markets to promote (ndian cinema and also plays host to a number of buyers from various countries. :!,'Ns main ob2ective is to e pose the (ndian audience to a plethora of fine films from various countries, however due to limited resources the emphasis is on good 1uality family entertainers. To fight video piracy, :!,', in collaboration with the (ndian film industry has set up an anti - piracy body, (ndian !ederation >gainst 'opyright Theft @ (:!>'T A, which is registered as a company under the 'ompanies >ct. The two international co - productions recently completed are N8aking of a 8ahatmaN a 2oint venture between :!,' and the South >frican #roadcasting 'orporation and NBaya 3angaN an (ndo - !rench venture. The Theatre !inancing Scheme was launched by :!,' to ensure the creation of additional seating capacity in (ndia and to provide outlets for fine cinema. The 'ine >rtistes )elfare !und of (ndia @'>)!(A established by the 'orporation with a corpus of Rs ;.<< crore, has been providing pension and other such benefits to needy cine artistes of yesteryears.

-age =4 of ./

 )irectorate of Film Festivals The ,irectorate of !ilm !estivals was set up in &4/;, under the 8inistry of (nformation and #roadcasting, to help promote (ndian films of aesthetic and technical e cellence, both within (ndia and abroad. Since then, the ,irectorate has supplied a platform for the best in (ndian cinema by holding the :ational !ilm !estival every year. The ,irectorate has been successfully promoting (ndian cinema abroad and also given a chance for (ndians to appreciate some of the finest works of international cinema. )ithin the country, it has made the newest trends in international cinema accessible to the general public. The ,irectorate was brought under the :!,' in Buly &4.&, and in Buly &4.., it was again transferred to the 8inistry of (nformation and #roadcasting.

:ational Film 3wards The :ational >wards for films, known as state awards till &4GG, were set up in &4<;, for promoting the countryNs film art by acknowledging the outstanding achievements in various fields of film - making. The ,adasaheb -halke >ward is decided by the 3overnment of (ndia, and the entries for the :ational >wards are 2udged by two national 2uries, one for the feature films and the other for short films.

:ational Film 3rchive of (ndia The :ational !ilm >rchive of (ndia @ :!>( A was established in !ebruary &4G=, as a media unit of the 8inistry of (nformation and #roadcasting. (ts ob2ective is to ac1uire, preserve and restore the rich heritage of national cinema, and the cream of international cinema. The archive has made

-age <5 of ./

significant progress in the preservation of films, audio and video material, documentation, research and dissemination of film culture in (ndia. The archive functions as the main repository for (ndian and foreign research workers for viewing film classics, relating to their research pro2ects. The >rchives ,istribution +ibrary caters to over ;55 !ilm Societies and !ilm Study 3roups in educational institutions in the country. :!>( is a member of the (nternational !ederation of !ilm >rchives, since 8ay, &4G4 which enables it to receive e pert advice and material on preservation techni1ues, documentation, bibliographies etc and to e change rare films with other such archives under the archival e change programme. The >rchive maintains a distribution library of &G mm films @ (ndian and foreign A which are loaned to film societies and others for non - commercial study screenings. :!>( in collaboration with !T(( conducts an >nnual !ilm >ppreciation 'ourse. !ilm buffs, teachers, researchers, students and 2ournalists 2oin this course to learn about cinema and its vital cultural role. )ith its head1uarters at -une, :!>( has at present three regional offices at #angalore, 'alcutta and Thiruvananthapuram. Regular 2oint screening programmes at important centres like #angalore, 'alcutta, 8umbai, Hyderabad and Thiruvananthapuram e pose audiences to the fascinating history of (ndian and world cinema. E ports 7 (ndian films are e ported to around 45 countries, the traditional markets being the 3ulf countries, 'anada, 8alaysia, Sri +anka, $L, $S>, :orth >frica and the )est (ndies. >mong the non - traditional markets, $SSR is an prominent buyer.

-age <& of ./

 :ational !entre of Films for !hildren and ;oung People The :ational 'entre of !ilms for 'hildren and Poung -eople @ :N'P- A, earlier known as 'hildrenNs !ilm Society, was established in &4<<, as an autonomous unit with an aim to provide children value - based entertainment through the medium of films, and is engaged in production, ac1uisition, distribution and e hibition of childrenNs films. :N'P- conducts N (nternational !ilm !estivals for 'hildren and Poung -eopleN every two years. The 'entre produces feature films, television serials, short featurettes and short animation films for children and young people. (t also purchases the rights of foreign films and presents them in the country after dubbing in (ndian languages. The films produced by :N'P- are entered in several :ational and (nternational !ilm !estivals and have won many awards. The 'entre holds its own (nternational !ilm !estival every alternate year. The 4th such !estival took place in :ovember &44< at Hyderabad, which attracted &=; entries from more than %< countries. The 'entreNs films have participated in &. (nternational !ilm !estivals in &44<. !ilms produced by the :N'P- are e hibited through district - wise package programmes.

Film and +elevision (nstitute of (ndia The !ilm and Television (nstitute of (ndia @ !T(( A located at -une, imparts technical training in the art of film - making and also gives in - service training to the personnel of ,oordarshan. The !T(( conducts ; - year specialisation courses in motion picture photography, cinematography, film direction, sound recording and sound engineering with one - year integrated training. The T? wing of the (nstitute primarily caters to the training re1uirements of various production and technical staff of ,oordarshan. Television training is given in T? programme production, studio technical operations, T? films and

-age <% of ./

T? graphics and design. The (nstitute regularly sends its studentsN films in national and international film festivals, in order to give e posure to studentsN work, not only on the national, but the international level.

Federation of Film 8ocieties of (ndia The !ederation of !ilm Societies, an ape body of the film societies in (ndia, is provided grants - in - aid by the 8inistry of (nformation and #roadcasting to spread film awareness and development of audience taste in the realm of cinema. These !ilm Societies aim at nurturing and developing film culture in the country.

-age <; of ./

%undred /ears o& $inema in India

<. L. 8aigal and 9amuna in =)evdas= >1*3"? )hen the +umiere #rothersN first films were shown at #ombayNs )atsonNs Hotel in &.4< or when ,adasaheb -halke released his epochal feature film Ra2a Harischandra in &4&;, it is unlikely that either the e hibitors or the pioneer film maker realised they were unleashing a mass entertainment medium that would hold millions in sway for the ne t hundred yearsF that they were spawning an industry that in years to come would overtake the rest of the world in film productionW !or most (ndians, cinema is integral to their livesF it is not a distant, two to three hour distraction, but a vicarious lifestyle for them. The large screen provides an alternative, an escape from the realities of day-to-day life. The protagonists are totally identified with, the hero is applauded, the virtuous is worshipped and the villain is condemned. The actors and actresses are household namesF there is no escaping their omnipresence, from the Paanwala @betel vendorA to the most revered (ndian painter - they are all caught up with the magnetism of screen personalities. > study of the vicissitudes of (ndian cinema would throw light on the progress of technology, especially cinematography, and the changing political scene and social mores and attitudes. The silent films launched by
-age <= of ./

-halke, which had titles in English, 3u2arati, Hindi and $rdu, by and large related to myths and legends. The stories were familiar to the audience and re1uired minimum commentary. Historicals also proved very popularF Harsh, 'handragupta, >shoka and the 8ughal and 8aratha kings strode the silver screen amidst cardboard pillars and in tinsel costumes. Strangely enough, while in the nineties we are still arguing over whether or not NkissingN should be shown on screen, in the first decade of (ndian cinema, with the #ritish paying scant attention to censorship e cept when the Establishment was attacked in any wayF leading heroines of the day kissed their leading men without inhibitions, like +alita -awar in Pati Bhakti @&4%%AW )ith the advent of 3andhi2i came the plea for according a better status to women, the removal of untouchability and a cry for religious harmony. The silent era of Hiralal Sen, #aburao -ainter and R. :atara2a 8udaliar came to an end when >dershir 8. (rani produced his first talkie, Alam Ara in &4;&. (f -halke was the father of (ndian cinema, (rani was the father of the talkie. The classic Hollywood musical Singing in the Rain e emplifies the cynicism with which people first regarded the talking movie and this holds good for (ndia too. There were too many gargantuan problems to be tackledF there were no dialogue writers, no lyricistsF songs had to be sung during the filming as prerecording facilities were yet unknown. 8inimum instruments were used as the instrumentalists had to be camouflaged behind the singer. > 1uaint story goes that during the filming of a song the actress was getting agitated as the tabla beat was too fast. !inally the shooting had to be stopped and a hapless tabla player was pulled out of the pool where he had been hidden. M)hat can ( do,M he cried, Ma fish got into my dhoti @loin clothAM. #ut the talking film had come to stay. 'onsidering that even the silent film had a preponderance of songs, the talkie came to be more of a singleF the heroes and heroines sang their way through the three-four hour movie. Histrionics and appearances counted lessF a singing talent was all that mattered. To this day the (ndian film song has a uni1ue thrall. The music
-age << of ./

director, the song writer and the playback singers have an unparalleled status in (ndiaNs cinema. (f #ombay was the hub of early cinema the other centres were not far behindF 'alcutta and 8adras with their own patriarchs were also making path-breaking films. Chandidas a film glorifying the #hakti movement and castigating casteism, directed by ,ebaki #ose in &4;% for :ew Theatres, was lauded for its use of background music and dramatic narrative. L. SubrahmanyamNs Thyaga Bhoomi @&4;4A and Se a Sadan both advocated womenNs rights and self-dependence. Se a Sadan also introduced to the world through the silver screen, the great singer 8.S. Subbalakshmi, who came to be immortalised for her role in and as the poet-saint !eera both in Hindi and Tamil. )hile it is almost impossible to even list all the luminaries of (ndian cinema over ten decades, the )adia #rothers deserve special mention, before going into the different genres. B#H and Homi )adia were the forerunners of the stunt film - the thirties was a period in (ndian cinema when N)adiaN and N:adiaN were synonymous. >ustralian by birth, 8ary Evans came to (ndia with a dance troupe. She was asked to do a number for B#HNs "oor#e# $manF she changed her name to :adia. M#esides being a lucky name, it rhymes with )adiaM, she is reported to have said, and through various circumstances she became stunt actress for the )adias, earning the sobri1uet M!earless :adiaM. The )adias had a fi ation for trains and made a number of films titled, Too%an !ail, &lying Ranee, Pun'ab !ail and so on. :adia got so used to sitting on roof top of trains for her stunts that she became reluctant to step off and even demanded her lunch be sent upW The true stunt woman, she grappled with a lion, did the trape9e, carried a calf and a man over running trains - it is unlikely there could ever be another actress like :adia. She married Homi in &4G5, and breathed her last recently.

-age <G of ./

)avid with child actors in =/oot Polish= The forties was a tumultuous decadeF the first half was ravaged by war and the second saw drastic political changes all over the world. !ilm-makers delved into contemporary themes. ?. Shantaram, the doyen of lyrical films, made Dr( )otnis )i Amar )ahani - a tribute to ,r. ,waraknath Lotnis who went out with a medical team to 'hina and died there. ShantaramNs other films were reformist but visually appealing, like, Do Aankhen Barah Haath, Pin'ra, Chaani. #ut there were films where pure artistic merit supersedes social message as in Jhanak Jhanak Payal Baa'e and *eet *aya Pattharon "e. South (ndian films also gained great footing. >?8 and 3emini were two of the most prolific producers turning out social drama in the South (ndian languages as well as in Hindi. )hile the thespian actor Shiva2i 3anesan delivered mind boggling solilo1uies on screen, many of the politically inclined writers and actors of the south (ndian screen began to use the medium for reaching out to people. The ,8L stalwarts, >nnadurai, Larunanidhi and 83 Ramachandran did not even resort to subtlety. M:aan anaittal adu nadandu vital...M sang 83R, @if ( could be the decision maker, the poor of this world will not suffer....MA. The very titles of the films were chosen with careF Rickshakaran @Rickshaw ,riverA, !uttukara +elan @cowherd ?elanA and ,n )adamai @my dutyA to convey his identification with the masses. :o wonder he was hailed !akkal Thilagam @gem amongst peopleA. Bust how effective was the use of the medium was amply proved

-age </ of ./

with the party coming to power and 83R getting voted 'hief 8inister of the state. The other star who used the screen image to great advantage was :.T. Rama Rao of >ndhra -radesh. The veritable screen god, :TR played the role so often that he began believing in his divinity. >pparently so did a lot of other people in >ndhra, which is why we had a second screen hero from south as 'hief 8inister.

.a@ <apoor in =8hri 25= -

)hile the south was busy wooing the public for votes, #ombay was either turning out escapist fare, light, happy, musical films with ,ilip Lumar, Ra2 Lapoor, ,ev >nand, Shammi Lapoor, Lishore Lumar, :argis, 8adhubala, :utan, 3eeta #ali, 8ala Sinha and others or gave the audience absolute tear 2erkers with social melodrama. This was the golden era of music. Shankar- Baikishan, *.-. :ayyar, 8adan 8ohan, '. Ramchandra, Salil 'haudhury, :aushad, S.,. #urman - all had their distinctive sway. Each vied with the other to produce some of the most unforgettable melodies (ndia has ever known. This was also the age of innocenceF the screen was black and white, the vamp and the heroine did not merge, they had their
-age <. of ./

domains, there were no shades to the hero, a man was all good or rotten to the core. :o double entendres were woven into the songs and even the vamp was decently attired on the screen. This was the era of Ra2 Lapoor, of Shree -./, Awara, Boot Polish, Jagte Raho, Chori Chori and of course his magnum opus !era "aam Joker - he was still making and acting in enduring films, the tramp who is not able to cope with the pace of the world. He caught up with times and his films changed with Sangam, Jis Desh !ein *anga Behti Hai, Satyam Shi am Sundaram and Ram Teri *anga !aili. ,ilip Lumar and 3uru ,utt were e cellent foils to the chocolate-faced heroes as tragedy kings. So were 8eena Lumari and #ina Rai amongst the heroines. #ut such was their versatility that they could also carry off comedy effectively. Two outstanding Hindi films of the fifties that deserve mention are L. >sifNs !ughal#e#A0am @took &= years to make and is one of the most lavishly produced historical of (ndian cinemaA and 8ehboob LhanNs !other 1ndia which is said to have gained the status of 3one )ith the )ind.

Auru )utt and 'adhubala in ='r B 'rs ""= -

(n the meantime in #engal, the man who was to take (ndian cinema to the international arena and win accolades from the greatest film- makers, Satya2it Ray, released his first film, Pather Panchali @&4<<A. >fter his trilogy there was no looking back for him or for cinema from #engal. 8rinal Sen conveyed his 1uiet commitment to socialism through films like Calcutta, 2ka 2rie )atha @TeluguA and Bhu an Shome. ,irector Ritwik 3hatak gave us memorable films !eghe Dhaka Tara and Subarnarekha. >lthough #engal

-age <4 of ./

also came up with films that asked for a willing suspension of disbelief, these were e ceptions rather than the rule as in #ombay films, where the 8ukher2is, Sippys, 'hopras, 'hakraborty and 8anmohan ,esai produced one bonan9a after another for the masses and laughed all the way to their banks. There was no market for serious films, it was felt, and the classics that failed to break even like 3uru ,uttDs )aga0 ke Phool and Ra2 LapoorDs !era "aam Joker, only strengthened the conviction. The former committed suicide and the latter resorted to the populist fare with #obby. (t was only after the government set up the !ilm !inance 'orporation @!!', which in &4.5 came to be known as :!,' i.e. :ational !ilm ,evelopment 'orporationA that several small but serious film makers got the wherewithal to make films, notable among them being 8ani Laul, Lumar Shahani and 3? (yer @with his maiden venture in Sanskrit, Adi SankaracharyaA. The 'orporation also partnered the making of >ttenboroughDs *andhi and financed Satya2it RayDs *hare Baire which was to be one of the last films of the master. +ike cinema in #engal, 8alayalam cinema too was meaningful but it took a longer time to get noticed. (n fact it was Ramu LariatDs melodious tragedy Chemmeen winning the -residentDs gold medal in &4G< that drew attention to 8alayalam cinema. >door 3opalakrishnan @ Swayam aramA and others all gained similar recognition in the years to come. )ith actor -rem :a9ir doing stellar roles in a record breaking G55 films, 8alayalam films have come to be G5rahminsG5i9ed by simple narration of powerful stories, authentic locales and low cost production. The Laranth @#?A I Larnad @3irishA combine have produced two milestone Lannada films +amsa +riksha and Samskara, both essentially iconoclast in treatment. Though much talked about, the criti1ue of caste G5rahmins, the theme of both films was later seen to be rather e treme. (n this conte t it is worthwhile to mention two films made in Tamil on the same sub2ect. +edam

-age G5 of ./

Pudithu directed by -. #haratira2a and 2re 2ru *ramathile by L. Byothi -andyan. #oth carried strong indictments against caste hierarchy and the common manDs struggle to overcome it, but retained a balance I rather unusual for Tamil films. )ith government funds available for making films, the seventies saw an unhealthy divide between the e isting commercial or mainstream cinema and the new parallel cinema or art films. The former was condemned une1uivocally by the critics but continued to fill the coffers while the latter got rave reviews, bewildered the masses and created deep dents in government resources. !ortunately this situation did not last long, for soon there came a crop of film makers who realised that meaningful films need not necessarily incur heavy losses. Shyam #enegal, @ Ankur, "ishant, !anthanA proved that there was an audience for films without frills but with a strong story and interesting narration. 3ovind :ihalani, Babbar -atel, 8ahesh #hatt, L. #alachander, #harati Ra2a, >door 3opalakrishnan, all fell into this category.

3mitabh /achchan and Pran in C)onD -

>round this time, the singular phenomenon, the angry young man with his dark looks, smouldering eyes and mesmerising voice, >mitabh #achchan, began to stride the scene like a colossus. He introduced to cinema for the first time as a cult, the negative or the anti-hero. Special screen plays were written for this hero seeking vengeance and taking on single-handed an unsympathetic establishment and inade1uate legal system.

-age G& of ./

The eighties saw the advent of women film makers, ?i2aya 8ehta @ Rao SabebA, >parna Sen @345 Chowringhee Lane, ParomaA, Sai -aran2pye @Chashme Baddoor, )atha, S6arshA, Lalpana +a2mi @,k Pal and, later the much acclaimed RudaliA, -rema Laranth @PhaniammaA and 8eera :air @Salaam BombayA. The most commendable thing about these directors is their individuality. Their films have strong content and are told with passion, @only Sai has tackled light hearted sub2ectsA. (n the nineties, (ndian cinema faces tough competition from televisionF the cable network gives viewers any number of channels and though the most popular channels continue to be the film-based ones, the cinema halls have taken a beating. :evertheless, films like >ditya 'hopraNs maiden effort, Dilwale Dulhaniya Le Jayenge and Sura2 #ar2atyaNs Hum Aa6ke Hain )aun have broken all records, because they recall the innocence of the fifties, a novelty in this age of se and violence. This gives hope. 'inema in (ndia can never cease, it has gone too deep into our psyche. (t may undergo several reverses in fortune. )ith other mediums opening up, there will be a smaller market for films. +iving as we are in a global village today, we are becoming a more discerning audience. :o longer are we going to lap up every mediocre fare dished out by the moghuls of cinemaF only the best will survive. >nd this is 2ust as well.

The 'a0or Players in this Industry

Pash Ra2 !ilms $T? 8otion -ictures Sahara *ne ?ishesh !ilms -ritish :andi 'ommunications 8ukta >rts ,harma -roductions

-age G% of ./

$on"lusion
The (ndian film market is coming of age. The stakes are becoming higher. %5 years ago the film ,eewar did business of Rs.& crore @about $SO %;5,555A in #ombay. Today, Shahrukh Lhan charges five times this amount for acting in one film. (n &44= Hum >apke Hain Laun broke all records in terms of bo office collections and is known to have had collections in e cess of Rs. %< 'rores @appro . $SO <.< millionA. this was regarded as a bench mark in the (ndian !ilm (ndustry at that time. Today this much collection is very easy for any decent banner film. This year Rang ,e #asanti has made a collection of appro imately %<5 crores setting another new bench mark. Rang ,e #asanti also has the uni1ue distinction of perhaps having had the biggest selling soundtrack of all time having sold over one crore @&5 millionA units, the second largest after 3>,>R. These figures, standing alone, may sound staggering, but these are 2ust the silver linings to the dark clouds that the industry is facing. !urthermore, these staggering figures also pale in front of the Hollywood. >ccording to VHollywood Reporter,N Titanic grossed over OG55 million in its first =5 weeks and made a total of O&,%&= million worldwide. (n (ndia itself, the film made in e cess of Rs <G crores @$S O &%.< millionA at the bo office in its initial &5 months. VTitanicN in fact surpassed the earlier record set by VBurassic -arkN in &44; of gross collections of $S O;</ million in the >merican domestic circuit and $S O<G; million worldwide. )hen will (ndian films, which en2oy viewership in almost every corner of the world see such figuresH (ndiaDs greatest potential lies in its copyright related industries. (ndia is the largest film-producing nation in the world. (t has given the world the largest number of computer software engineers and its music is en2oyed all over, in particular in South and South East >sia. (t has a vibrant publishing industry with publications in over %G official languages. >ll these industries crave

-age G; of ./

protection of the laws. (f these laws and their enforcement are strengthened, it is only (ndia that will benefit. =. -8s. Basmeet )alia @Symbiosis (nstitute of !oreign Trade, -uneA conducted this study of behalf of (ndia (nfoline, as a part of her summer internship.

-age G= of ./

1.Satellite Television
(ntroduction The growing popularity of T? as a communication medium has resulted in the T? media sector undergoing a rapid transformation. The 0ee channel that started in *ctober &44% cataly9ed the industry into a high growth spiral. 0eeDs success tempted several other private players to enter the business, resulting in overcrowding. >part from all the 0ee channels, other ma2or satellite channels avidly watched by viewers are Star T?, Sony T?, Home T?, ##' " '::. There are regional language channels, which are ma2or players in their respective territories like Sun T? and ?i2ay T?, both dominant in the South. The primary source of income for T? channel operators is advertisements. This revenue is directly co-related with the reach and viewership of a channel. >ny channelDs popularity depends on good 1uality programs, which is the software content. The business re1uires enormous initial investment in programs and revenues follow only with a time lag after the channel receives a minimum viewer acceptance. >t present ,oordarshan continues to get ma2ority share as far as advertisement revenues are concerned because of its reach in rural as well as urban (ndia. Satellite channel penetration is higher in urban areas but is gaining in popularity in rural areas also. >s on date, appro imately =56 of total >, spending is generated by !ree to >ir television channels like ,oor ,arshan and ,, metro. )hereas, around %;6 of the total ad spending is generated by the ma2or Satellite channels, they are, Star -lus, 0ee T? and Sony. !rom having one public service broadcaster to over ;<5 channels available today, the (ndian television industry has come a long way and is poised for even higher growth. >n urban cable home in the four metros currently
-age G< of ./

receives appro imately 45 T? channels in the analogue mode. !ifty of these channels are Nfree-to-airN and the balance are NpayN channels, which are bundled together into bou1uets. The television industry broadly has three streams of revenue I subscription, advertising and software content. (ndia is the third largest television market in the world today. There are over &&4 million television households, which comprise only about G5 per cent of the total households in the country. *f these &&4 million television households, about <5 million receive cable television services, leading to a penetration of only about =% per cent cable T? households to total T? households and %< per cent cable T? households to total households in (ndia. >s can be seen from these low penetration percentages, there e ists a huge untapped potential for growth in this industry. >dvertisement revenues, which are the barometer of channel popularity, will get dispersed over several competing channels. > shakeout is likely in both the channel and cable T? sectors. The biggest beneficiaries will be the content providers or the software houses. They will control the intellectual rights to the key element driving any channelDs popularity. (nvestors should overweigh this sector, especially those companies, which own program rights like Star -lus and Sony T?. The growing popularity of T? as a communication medium has resulted in the T? media sector undergoing a rapid transformation. !rom the black and white days of state controlled ,oordarshan, to the highly colorful tunes of 'hannel ? and 8T?, the medium has certainly undergone a phenomenal change. 3iven its popularity, percentage ad spend has also increased proportionately on this medium.

-age GG of ./

'edia pie >4? Media T' "adio Press #$$% ()*% ),*$ #(*( #$$& (+*+ #% #(*)

Source "RS

Entry of new channels post 1**1 (ndian telecasting has witnessed entry of new channels to cater to the various needs of (ndian audiences. 'hannels have been launched in English, Hindi as well as other regional languages. Till &44&, the state owned ,oordarshan ruled the roost, as other players were not allowed to uplink and broadcast. However channels such as '::, Star T? and ##', which were offshore companies, could circumvent these regulations and telecast their programs into (ndia. 'able operators then relayed the same and made it available to the common man through the cable television network. +ike many other countries, the State machinery controlled television. (t was used as a propaganda tool for the party in power, with the opposition always at the receiving end. The customer had very little choice. The first steps towards more user choice began during the >sian 3ames in &4.%, which had to be telecast to a wider audience. ,oordarshan @,,A used (nsat & # for the telecast and the ,, network was launched as a national channel. The cricket telecast by 'hannel 4 in &4.< and the 3ulf )ar in the late eighties all played small but important cameos in educating the (ndian

-age G/ of ./

viewer. )ith liberali9ation in &44% and crumbling tariff barriers televisions @read as color T?sA became more easily available. The media revolution had started. 'urrently, the ma2or players include7 )oordarshan >))? - *wned by the State, it had monopoly over (ndian television till &44%. ,, still remains the dominant player with a wide reach. (t has over <<5 transmitters installed all over (ndia and covers over /5mn households. ,, :etwork, its main channel was launched in &4.% during the >sian 3ames. 3iven its monopoly, ,,Ds operations remained stagnant till &44%. ,,% was launched in Banuary &44; to meet the challenge of competition and it covers about &=mn households. ,, plans to launch regional channels. (t also has ambitious overseas plans as well as setting up of pay channels, ,irect to Home @,THA, etc. Eee +7 I 0ee channel was promoted by Subhash 'handra 3oel @Essel 3roupA and associates to launch a Hindi channel for the (ndian sub continent. 0ee channel was launched in *ctober &44%. (t has become very successful and has grown rapidly in the last four years. >s (ndian regulations did not allow private channels to uplink from (ndia and set up private television stations for terrestrial viewing, promoters of 0ee along with ST>R T? @owned by Rupert 8urdoch controlled :ewscorpA promoted an offshore company, >sia Today @>T+A incorporated in Hong Long to operate 0ee. (t has launched other related channels like 8usic >sia, 0ee 'inema and (ndia T?. 8un +7 I )as promoted by the 'hennai based 8aran family, a close associate of the ,8L party of Tamil :adu. (t is very popular in Tamil :adu and among the Tamil speaking population elsewhere. (ts three main channels telecast music, movies and entertainment. Recently, it has launched other regional channels in South (ndia.

-age G. of ./

 1ome +7 I )as originally promoted by Hindustan Times. ,ue to mounting losses, the :orth (ndia based Sahara 3roup has taken a controlling stake in it. The group is planning to invest about Rs.%<5 mn to revamp its operations. The new launch has been delayed.. 8hristi I (s a ,elhi based company engaged in production and postproduction facilities of programs. They have launched an entertainment channel on (ntelsat /5= but is not doing well. 3+: I -romoted by Siddharth Srivastava, it was the first private channel operator to begin operations in >ugust &44%. The management control has since then passed on to the Hindu2as as a fallout of the cash losses it suffered. The company is mired in controversies particularly with regard to the screening rights of Hindi movies. 8ony +7 I -romoted by Sony, the Bapan based consumer electronics company, has become very popular among the masses with the channel now holding more than &56 of prime time viewership. 7i@ay +7 I $T? and (+!S >(3 have taken a ma2ority stake in the company, which is popular in South (ndia, especially >ndhra -radesh. The 8allya controlled $# 3roup continues to retain /.<6 stake. The new management intends spending over Rs<55mn to make it a youth oriented entertainment channel. *ther operators include the foreign global media entities like E8P: >sports channel?F )iscovery and :ational Aeographic >(nfotainment?F 3G: >3ction?F !::F //!F etc. The 0ee channel, that started in *ctober &44% cataly9ed the industry into a high growth spiral. 0eeDs success tempted several other private players to
-age G4 of ./

enter the business, resulting in overcrowding. Hindi channels such as Bain T?, Home T?, >T:, Sony Entertainment, :E-' T? as well as StarDs own Hindi channel started operations. *ther 8:' media entities followed suit. >part from all the 0ee channels, other ma2or satellite channels avidly watched by viewers are Star T?, Sony T?, Home T?, ##' " '::. There are other regional language channels which are ma2or players in their respective territories like Sun T? and ?i2ay T?, both dominant in the South. 8ost of the channels that could not become attain popularity rapidly suffered, since their advertisement earnings were not sustainable. The first round of the media wars is over. 8anagement changes, i.e. original promoters selling out to new managements with deeper pockets, have become the order of the day. >lliances like the famous ES-: Star Sports arrangement also made headlines. 3iven the global trends of mergers and ac1uisitions, further consolidation is likely. >lliances and mergers make sense when the partners complement each other, like ##' and ,iscovery launched >nimal -lanet, ':#' and >#:( came together to launch a business channel called ':#' >sia. The new channels include7

'hannel >X: >T: >nimal -lanet ,) !alak !ashion

3enre >ction programming (ndian music ,ocumentary education 3erman language general entertainment $rdu programs Style

-age /5 of ./

Hallmark 3ur2ari Lermit +ashkara 8'8 -un2abi world T?< ?atsa

8ovies 3u2arati programs Pouth oriented general programs -un2abi programs 8usic -un2abi programs !rench programs (ndian music

Earlier uplinking was not allowed from (ndia. This law has been recently amended to allow all (ndian companies to uplink directly from (ndia. The definition of (ndian company ensures that the foreign ownership is restricted to %56. These companies lease transponders in satellites with a footprint over the (ndian sub continent to make available their programs in (ndia.

8atellites and channels -

-anamsat = >siasat & ##' ':: ,iscovery ES-: HomeT? 8T? StarSports Star -lus

>siasat % ':#' T? <

(ntelsat /5; (ntelsat /5= Thaicom %S; T?( Sun8usic Eenadu ?i2ayT? -un2abi)orld Ra2T?

Star 8ovies Star :ews >sianet 0ee 'inema StarT? 0eeT? Star )orld T?E Sky :ews SunT? $dayaT?

3emini T? >sianet 8T? SunT? >T: >T:#angla >T: Hindi

-age /& of ./

Sony T? T:T 8usic >sia

0ee (ndia

''T? T?S:

!able networks >ntennas set up by either the end user or the cable operator receive the signals transmitted by the satellite. +ocal cable operators lay their own cables, set up control rooms which can telecast =5 or more channels over a limited area. They charge the household a one-time connection charge of about Rs. <55 per point and a recurring monthly charge ranging between Rs.<5 to Rs. %55. (nitially, this was done in a very unorgani9ed manner. The business re1uired local knowledge and contacts, so every locality had its own cable operator. 'ollection was critical for the cable operator. !or the end user, 1uality of telecast and a complete lack of standards became an issue. This leads to a shakeout and the formation of cable companies with money power which in turn tied-up with the local and small cable operators. 'able companies charge about Rs%< per month to the local cable operators and support them with training and other infrastructure inputs. The business is immensely capital intensive and takes a long time to break even. The operations of cable operators are regulated under the 'able T? >ct which ensures that pornographic materials and other materials which are against (ndian culture and values or are detrimental to national interests do not get telecast. Recently this act has been amended toYinclude foreign channels also.

)irect to 1ome >)+1? -age /% of ./

,TH is a new technology that circumvents the cable operators by directly delivering a bundle of channels to the end user. ,TH involves transmission of encoded audioS video signals @Lu bandA via satellite. The end user needs an antenna to receive the signals and a decoder @set top bo A to unscramble the encrypted signals. ,TH services elsewhere in the world are Echostar and ,irecT? @$S>A and #sky# @EuropeA. Rupert 8urdoch of Star T? fame owns #sky#. The si9e of the antenna in ,TH will be &.<-% ft in diameter, making it easy to install and transport. (n conventional cable, since signals are in ' band, an .ft-diameter antenna is needed. The basic difference in the business model is the hardware costs in ,TH. (n a cable system, the user pays an one time connect fee and monthly rentals, while in ,TH he has to invest in hardware. The antenna will cost about Rs&5-&<555 and decoder will cost about Rs&5555. The (ndian viewer might be reluctant to incur such heavy installation costs. Quality of telecast in ,TH is superior to 'able T? and viewer can receive upto %55 channels. ,TH regulations have been referred to a committee of cabinet ministers. > formal announcement on the same is e pected shortly. (n the meantime, ,, has sought to be the e clusive licensee for providing ,TH services. The license will be for a period of &< years, the first < being e clusive and in the balance &5, ,, will be e posed to competition. The ,TH market in (ndia, according to Star T? reports, is estimated at 5.&mn households. >nother issue that will impact valuations will be local program content. (n (ndia, given the diversity and differences in tastes, regional content is critical for success. This has been proved by the success of Sun T? in 'hennai. ,TH will result in restructuring of the cable television industry. (t will become imperative to have cash reserves to withstand the technology threat.

-age /; of ./

$pgradation to fibre optic backbone will become necessary. > fibre optic network will cost about Rs5.<mn per km as compared to Rs5.&mn per km for coa ial cable. The stage is now ripe for consolidation.

+7 media H features (n the #roadcasting business, it is only the industry leader who makes si9eable profits. The business is a game of asymmetrical payoffs. !or instance, the top < channels account for 456 of ad spend. $rbani9ation and T? penetration is related. This may be due to the popularity of cable television that has resulted in increased color T? sales. Rural penetration is low, although growing at a fast pace, because of dearth of specific program content to cater to that segment. +iberali9ation has resulted in the (ndian viewer becoming more aware and conscious. This has resulted in the customer having more choice with the entry of a number of companies in different segments. 'ompetition has resulted in companies increasing their marketing spend significantly. -opularity of T? media is becoming higher. (ncreasing T? penetration leads to a reallocation of advertisement budgets with higher allocation for television at the cost of other medium. T? channel operators use different business models to generate revenues. The critical component of any channel is the 1uality and type of programs they telecast. This determines their popularity, which in turn determines amount of advertisement revenues they can generate. They can do any one of the following7 #uy programming rights of program software from outside and collect advertisement revenue on their own. This model is followed by 0ee T?, wherein they have a separate company in their fold called 0ee Television,

-age /= of ./

which develops all the content. The advantage is that re runs of serialsS programs become very profitable. Selling time space to the producers for a fi ed charge. -roducers in turn are free to book advertisements at their own rates @there is an understanding on the time allocated for advertisementA and collect revenue. This is ,oordarshanDs basic model in which they sell prime time slots. The rights continue to be vested with the producer.

Earnings drivers The key factors that drive sector revenues are7

)ith increasing number of channels being launched, it is estimated that the industry will grow by &%-&= per cent in the immediate ne t year and thereafter by &= per cent per annum compounded annually, over the ne t five years.

Subscription revenues are pro2ected to be the key growth driver for the (ndian television industry over the ne t five years. Subscription revenues will increase both from the number of pay T? homes as well as increased subscription rates. The buoyancy of the (ndian economy will drive the homes, both in rural and urban @second T? set homesA areas to buy televisions and subscribe for the pay services. :ew distribution platforms like ,TH and (-T? will only increase the subscriber base and push up the subscription revenues.

-age /< of ./

Television penetration7 Since the medium is television, increased television penetration will imply higher viewership. This will translate into higher advertisement spend allocation. This will also imply higher software production and demand for new programs.

'ompetition from other satellite channels would have an adverse impact on advertisement revenues, as advertisers have more choice in allocating ad budgets.

3overnment policies can have a big impact on the fortunes of the entire industry. The ,TH bill is yet to be passed and if that happens, it will trigger a restructuring of the cable business.

+aunching new channels targeted at specific segments, like regional channels within (ndia or other areas having large pockets of ethnic (ndian population would lead to revenue growth. This will entail significant initial outlays.

,epreciation of the rupee would increase revenues as most of the programS software companies e port the programs overseas and payments are dollar denominated.

3dvertisement revenue -

-age /G of ./

>s mentioned earlier, this is the primary source of income for T? channel operators. This revenue is directly co-related with the reach and viewership of a channel. >ny channelDs popularity depends on good 1uality programs, which is the software content. The business re1uires enormous initial investment in programs and revenues follow only with a time lag after the channel receives a minimum viewer acceptance.

>t present ,oordarshan continues to get ma2ority share as far as advertisement revenues are concerned because of its reach in rural as well as urban (ndia. Satellite channel penetration is higher in urban areas but is gaining in popularity in rural areas also. ,oordarshan dominates with its reach in rural (ndia. However, within ten years from the launch, the satellite channels like Sony, Star -lus and 0ee T?., have been able gain si9eable proportion of advertisement revenue as a result of its immense popularity among the (ndian masses. >s on date, appro imately =56 of total >, spending is generated by !ree to >ir television channels like ,oor ,arshan, ,, metro, etc.. )hereas, around G56 is 'ontributed by other satellite channels.

-age // of ./

!ree to >ir channels

Satellite channels

60%

40%

*ut of the G56 that is contributed by more than ;<5 channels in (ndia, %;6 of the total ad spending is generated by the ma2or Satellite :etworks, they are, Star -lus, 0ee T? and Sony.

SonyZStarZ0ee @:etworkA

*ther Satellite 'hannels

23% 77%

'a@or Players

Star :etwork 0ee :etwork Sony :etwork Sahara :etwork Enadu T?

-age /. of ./

0utlook The sector has latent potential for growth on back of the e ponential growth of cable T?s during the last < years. Television penetration in (ndia is e tremely low as compared to other developing countries like 8alaysia, -akistan, etc. The number of channels has increased, implying higher demand for software programs. >dvertisement revenues, which are the barometer of channel popularity, will get dispersed over several competing channels. > shakeout is likely in both the channel and cable T? sectors. The biggest beneficiaries will be the content providers or the software houses. They will control the intellectual rights to the key element driving any channelDs popularity. ,irect-to-Home, ,igital Terrestrial Transmission and 'onditional >ccess 'able ,elivery have emerged as new delivery mechanisms. #reakthrough in technology would help open up avenues for these channels.

-age /4 of ./

".+he 8urvey on +he Entertainment (ndustry in (ndia.

> 8arket Research is the best way to know the mind of the -ublic. (tDs the source of >ccurate Statistical data " the True *pinion of the 'ommon 8an. Thus, to understand the psyche of the general public regarding The Entertainment (ndustry in (ndia, ( too have conducted a Survey with &5 relevant 1uestions. > Sample -opulation of &55 people was surveyed, ranging from ages &<-<5 years. The Questionnaire used for the survey is a under 7

+he .esult of the 8urvey

-age .5 of ./

 The *bservations are as follows 7 1. 1ow much time do you spare in a day on EntertainmentI

100 More than 5 50 0 0-2 Time 2-5

0bservations - (ts best to assume that most people spend around 5-% hours in a day Entertaining themselves, since it has received ma imum votes. The ma2or reason people gave for this is a busy lifestyle. > lesser populations spends around %-< hours " a meager amount spends more than < hours entertaining themselves. %. 1ow much can you spend on your Entertainment I

12" 155 %" "5 2" 5 E,penditure

'ore than "4 2$"4 5$24

0bservation - There was not much difference between the ; categories. 8a2ority of the population are ready to part with around %-< 6 of their

-age .& of ./

(ncome for Entertainment. Quite a :o. of people spend more than <6 too as well, followed by the first category, i.e, 5-%6. This shows that people are ready to spend more for 1uality entertainment and also that the purchasing power of people is increasing.

3. 2hat Entertains ;ou the 'ost I

3" 35 2" 25 1" 15 " 5 Films Radio TV Theatre Live Events Music Others

0bservations - The answers here were 1uite varied with !ilms topping the list, 8usic falling Second, followed by T.?., Radio, +ive Events " Theatre. Thus, one may assume, !ilms still rule the roost. . For +elevisionF what do you find the most interesting to watchI

-age .% of ./

Others Movies 'orror Music hannels Sports %e&s Li#est!le $ction "n#otainment omed! Soap Operas

15

25

35

"5

0bservations- 'omedy !ilms " music channels seem to be the most liked by the 8asses with around =<, =5 and ;/ ?otes respectively. :ews are the ne t in line with %% ?otes followed by Sports, action and soap operas. -eople are also finding interest in watching lifestyle and other informative channels due to learning more about the world as well as lifestyles in different countries. ". (ncase of FilmsF what do you find the most interesting to watch I
Others Love Stories Fantas! Sc-#i Thriller $ction (rama omed! 'orror

"

15

1"

25

2"

35

3"

-age .; of ./

0bservations - 'omedy !ilms " Thrillers seem to be the most liked by the 8asses, with around /5 " =5 ?otes respectively. +oveIStories are the ne t in line with ;< ?otes followed by Sci-fi, !antasy, >ction, ,rama " Horror.

#.

2here do you prefer to watch moviesI

*5 &5 %5 #5 "5 5 35 25 15 5 8ingle 8creen +heartres 'ultiple,es

0bservations- 'ultiple,es topped the list with &2 votes. 8ingle screen theatres received only 1&4 votes. +his shows that with the enrty of multiple,esF the popularity of single screen cinemas has declined largely. (nspite of high costs people prefer a good looking place with the latest technology. 'ultiple,es are preferred as they offer shopping malls as well as eating <iosks under one roof along with theatres. +he products are also of the best Juality and people save time in traveling. %. 1ow many 'ovies do you watch on an average in a 'onthI

-age .= of ./

5$1

3 %

'ore than

"

32 1&

3&

0bservations- out of 155F around 3& people watch 2 movies on an average in a monthF 32 watch 1 or less than thatF followed by 1& people for 3 movies and so on. +his shows that now people are spending on entertainment. 3s per the trade informationF this ratio doubles so far as the small towns are concerned and the viewership is almost doubled but the spending is less than one third of the motre spending.

&. 3re you satisfied with the Kuality of Entertainment provided in (ndiaI

-age .< of ./

%o

,es

20

)0

*0

+0

100

0bservations - >bout // people are 1uite satisfied with the 1uality of Entertainment provided in (ndia. This shows that 'ommon man is more than Happy " gets whatever he wants for Entertaining himself. *. 3ccording to youF in which stage does the Entertainment (ndustry in (ndia Fall I

155 %" "5 2" 5 (nfant 8tage )eveloping 8tage 3dvance 8tage 8tage

0bservations- > near about .G6 agree with the !act that the Entertainment (ndustry in (ndia is going through its ,eveloping Stage. *thers think, its already in its >dvance Stage, but hardly any people believe that its still in the (nfant Stage. 15. )o ;ou thinkF professionalism of +he Entertainment (ndustry will organiLe the (ndustry or have a positive effect on itI

-age .G of ./

5.5-

,es %o

0bservations - 8ost people seem to be in favour of professionalism that is taking place in the Entertainment (ndustry in (ndia. Sensible cinema as well as advanced 1uality and technology are finding more and more place due the companies recruiting certified staff. There are about 4<6votes that 2ustify this statement.

-age ./ of ./

$on"lusion

Thus, you see, thereDs definitely no #(0 like Show#(0[

Entertainment will always be an indispensable part of our lives " it is pulling more " more people towards it. >nd as newer modes of Entertainment keep on hitting us every other day, the chances for development of this (ndustry are up to (:F(:(+;.

3nd as +he Areatest 8howman of the !entury JuotedF M+he 8102 must go onNO ;esF it will go onN PP

-age .. of ./

/ibliography
1. 'agaLines Trade 3uide (ndia Today #usiness Today 'omplete 'inema

2. :ews Papers

Times of (ndia Economic Times

3. 2ebsites 6 2hite Papers

!ilmfare.com (ndiainfoline.com ddindia.com star.indya.com 9eene t.com setindia.com 'iionline.org @8ain SourceA I '((-L-83 Entertainment (ndustry Report !icci.com @8ain SourceA I !(''(--)' Entertainment (ndustry Report

-age .4 of ./