BOLLYWOODONTHEWINGSOFTECHNOLOGY

ANDITSCONTRIBUTIONTOECONOMY
HundredthYearofIndianCinema
M.M.K.Sardana *
[Abstract: Bollywoodas the mainstream Hindi language film producing industry is popularly known
asisthelargestproduceroffilmsinIndia,thoughregionalcinemascompetebothintermsofquantityand
quality of film production with the mainstream cinema. Bollywood film industry is as old as Hollywood.
Since1960,Indiahasbeenholdingtherecordofproducingthemaximumnumberofcommercialfilmsand
hasattractedthemaximumnumberofviewers;yetitstandsnowherenearHollywoodintermsofqualityand
alsofrom thepointofrevenuegeneration.It has survivedforabouta centurylargely onaccount ofa big
domestic market, which in the absence of a competing alternative source of entertainment has provided it
withsustenancethroughundyingadulation.Theindustryremainedfragmentedandcametobedominated
byastarsystem(dominatedbystarsandproducers)andfundedbydirtymoney.Intheinitialyearsofits
growth and many years thereafter there was no patronage from government and elite leadership. The
HollywoodIndustry,incontrast,developedonanorganisedstructureofstudioswherestarsystemdidhave
overriding domination and the financing of films was on commercial principles. Besides having a large
domestic audience, U.S. Government has always facilitated the growth of Hollywood films in foreign
countriesasapartofitsforeigntradepolicy.Hollywoodhasthusremaineddominantinforeignmarketsall
acrossthedevelopedworldwherethepayingcapacityishigh.TheorganisedindustryinHollywoodhasbeen
continuouslyadaptingnewtechnologiesandscriptingtechniquestoenhanceviewingpleasure.Bollywood,
consequenttopolicychangestowardsmarketlinkedeconomy,hasbeenquicktoimprovethedepartmentof
visual and cinematic effects by adapting latest technologies and creating a pool of trained technical
manpower.Ithasalsoimproveditsdistributionchannelbyintegratingtechnologywithmanagement.The
growingmiddleclassandincreasingdisposableincometendstoencouragethedevelopmentofmultiplexes
catalysedbygovernmentsincentives.BollywoodhastakenonthelifestylesofIndiansabroadintheirscript
making them aficionado of its products resulting in improved collections. Revenue generation has shown
healthy growth and projections are that the trend would be maintained. However, its growth potential
remains severally limited because of its weakness in its story telling techniques and script writings. If
BollywoodwishestocreateinterestoflargepayingpublicofnonIndianoriginabroadandclaimtobetruly
internationalentertainmentindustry,ithastoovercomethisdeficiency.]

Filmhasauniquelypowerfulubiquitywithinhumanculture.In2009,acrossmajor
territories,therewere6.8billioncinemaadmissions(equivalenttoworldpopulation)
creatingglobalboxofficerevenuesofoverUS$30billion.Theconvergentnatureof
filmcreatesconsumptionacrossanumberofchannels.Inthesameyearcombined
DVDandBluraysalesintheUnitedStates,CanadaandEuropeanUnionalonewere
US$32.5billion(1.1billionsunitssold).Whenonestartstofurtherconsiderrevenues
andaudiencefiguresfromthosewhoconsumedigitally,viatelevision,repeatview

TheauthorisaVisitingFellowattheInstitute.

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

content they already own and view through highly illegal but vast blackmarket in
films,thefiguresbecometrulystaggering. 1
Movies have come to be key cultural artefacts that offer a window into evolving
culturalandsocialhistory.Amixtureofart,businessandpopularentertainment,the
moviesprovideahostofinsightsintoshiftingideals,fantasies,andpreoccupations
likeanyculturalartefact,themoviescanbeapproachedinavarietyofways.Cultural
historianswouldtreatmoviesassocialdocumentsthatrecordthelookandmoodof
particularsocialsettings;asideologicalconstructsthatadvanceparticularhistorical
settings;asideologicalconstructsthatadvanceparticularmoralvaluesormyths;as
psychological texts that speak to individual and social anxieties and tensions; as
cultural documents that present particular images of gender, ethnicity, class,
romance,andviolence;andasvisualtextsthatoffercomplexlevelsofmeaningand
seeing. 2
Cinema has been perceived to be of therapeutic value. The narrative and
representationalaspectsoffilmmakeitawhollydistinctleisureactivity.Theunique
properties of cinema can have positive effects on mental health because visual
simulation can queue a range of emotions and the collective experience of their
emotions through the cinema provides a safe environment in which to experience
roles and emotions one may not otherwise be free to experience. The collective
nature of narrative and visual simulation makes the experience enjoyable and
controlled;therebyofferingbenefitsbeyondmerevisualsimulation. 3
Film is a reflection of society, both present and past. The film and its innovations
sometimes have to catch up to society but sometimes it leads society too. Movies
arestories,moviesaremadebypeoplewhocomeoutwithideasaboutsomething
theywanttosay,somethingtheywanttotellsomeone.Moviesareaformoftwo

Shah, Vikas (2001), The Role of Film in Society, an exclusive interview with Tom
Sherak,Presidentof theAcademy of Motion Picture Arts and Sciences, Thought Economics, June
2001.
2
Mintz, S. (2007), Hollywood as History,Digital History. Retrieved 15 March 2012 from
http://www.digitalhistory.uh.edu/historyonline/hollywood_history.cfm
3
Op.cit.1

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

waycommunicationsbetweenthenarratorandsocietyandhavebeenthatwayand
wouldcontinuetobethatway.AmirUllahKhanandBibekDeberoy 4 intheirpaper
on Indian Economic Transition through Bollywood Eyes have demonstrated how
HindiFilmshavereflectedchangesinIndiaspoliticaleconomyandsocietycovering
theentirespanofperiodofHindurateofgrowthtothepresentgloballylinkedera
when economy has been growing rapidly. Films, more than any other form of
popular culture, have been reflecting the socioeconomic milieu and changes in
policy. The films have been depicting economic problems of the people in a very
strong way and some such examples are: Awara (1951), Jagte Raho (1956), Naya
Daur(1959)andKalaBazar(1960).Therehaveevenbeencommentsoneconomic
policy in films like Johny Mera Naam (1970), Namak Haram (1973), Amar Akbar
Anthony (1977), and Gupt (1994). On a canvas, beginning with the period from
independence, and choosing economic policy of import substitution and foreign
exchangecontrolsfollowedbytheheadydaysofPublicSectorreachingcommanding
heights, Big Dams being constructed and the Green Revolution, Indias political
economy has seen its twists and turns, and ups and downs. Hindi Cinema has
incorporatedallthesetrendsinitsowninimitablestylethroughtheidealismofRaj
Kapoor, cynicism of Guru Dutt, strength of character exhibited in Dharmendras
movies like Satyakam, and romance in the films that followthe heady mix that
culminated in the era of angry young man. Then follows a phase of confusion and
completelackofimagination,afterwhichoneseesthehappygoluckyrecklessness
of generation next. The symbolism in all this is crystal clear. Today, as the Indian
Economylooksoutward,HindiCinemagoesglobaltoo.
InpreindependentIndiaalsotheIndianCinemacapturedthesocietal,economicand
politicalissuesinaboldwayevenunderanalienruleandwithoutanyblessingfrom
theelitistdominatedmovementofIndianNationalCongress.Infact,Gandhitermed
Cinema as sinful technology 5 . Even in U.S. there was similar vision about films at

Khan,AmirUllahandBibekDebroy(2002),IndianEconomicTransitionthroughBollywoodEyes:
HindifilmsandhowtheyhavereflectedchangesinIndiaspoliticaleconomy,ContemporaryIndia,
Vol.1,No.3,JulySeptember.
5
MahatmaGandhiandIndianCinema,FreeEssaysandResearchPapers,availableatoppapers.com,
2012.

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that time. The Chicago Tribune in its editorial observed that films were without a
redeemingfeaturetowarranttheirexistence.ministeringtothelowestpassionsof
childhood.AmirUllahKhanandBibekOberoyhaveillustratedsuchinitiativesintheir
paper.In1921,DhirenGangulycommentedontheWesternwayoflifeinhismovie
England Returned. This was followed by Baburao Painters Savkari Pash (or The
Indian Skylock), 1925, which looked at the plight of the Indian Peasantry and their
exploitationbymoneylenders.Similarly,filmslikeAchutKanya(FranzOsten,1936),
Aurat(Mehboob,1940),Roti(Mehboob,1942),DoBighaZameen(BimalRoy,1953)
and Sujata (Bimal Roy, 1959) dealt with issues of casteism, urban dehumanization
economic and gender roles and mass migration from rural areas and subsequent
plightinurbanslums.Realisticportrayalofeconomicconditionsofthepeoplewas
portrayed in Chetan Anands Neecha Nagar (1946) and K.A. Abbass Dharti Ke Lal
(1947).
Cinema in Hollywood was born in an age of reform, and many early silent movies
tookastheirsubjectmatterthemajorsocialandmoralissuesoftheProgressiveera:
birth control, child labour, divorce, immigration, political corruption, poverty,
prisons,prostitution,andwomenssuffrage.Manysilentmoviesdealtwithdominant
issuesofthetimeinawidevarietyofwaysrealistic,straightforward,humourous,
and sentimental. With Hollywoods bent from realism to escapism, the 1920s saw
thefirstfloweringofthemajorstudiosTheDreamMerchantsthatdominatedthe
business for decades; it started making movies which were swashbuckling and the
youngmoviegoersstarteddreamingofawayoflifewhichwasconsumeristinits
approach. As early as in 1907, the American society felt threatened by the evil
influenceofcinemaandapresidentialstudyconcludedthatfilmsencouragedillicit
lovemakingandinequityresultingincensorship.EventheSupremeCourtofUnited
States,in1915,ruledthatfilmswerepureandsimplebusinessandcouldnotqualify
toseekprotectionoftheFirstAmendmentandwerenotanorganofpublicopinion.
Duringthegreateconomicdepression,thenumberofmoviegoersincreasedasthe
goers could forget their worries for a couple of hours. It was a simple way of
escapism.Thefantasyworldofmoviesplayedacriticalsocialandpsychologicalrole

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

in evading the harsher realities of depressionera life. In the face of economic

disaster, it kept alive a belief in the possibility of individual success, portrayed a
Government capable of protecting its citizens from external threats, and sustained
thevisionofaclasslessAmericansociety. 6
Hollywoods greatest contribution to the War effort was boosting morale by
producingmoviesthatwerepatrioticrallyingcriesthataffirmedasenseofnational
purpose. Films of that period emphasized group effort and the value of individual
sacrificesforalargercause.WorldWarIIwasportrayedasapeopleswarinwhich
womenwerecontributingactivelybyservingasnurses,riveters,welders,andlong
suffering mothers, who kept the home fires burning. Leading actors and actresses
entertained troops and promoted recruitment by encouraging others, with many
among the fraternity volunteering themselves. Besides, it faced cuts in raw supply
stockandalsoceilingsoncostsofproduction.Fromtheforegoingitisdemonstrated
that film clusters at Bollywood as well as Hollywood have depicted the evolving
moodandaspirationsofthesociety.Thestateofaffairswouldbesimilarinallother
clustersascharacteristicallyallstorytellersinallmediumsdrawtheircreativityfrom
theirsurroundingenvironments.However,thetwoclusters,namelyBollywoodand
Hollywood, are significantly distinct in their structure and approach to filmmaking
andcommercesurroundingtheirfilms.ThoughBollywoodwithitsenormousglobal
impact on films, music, dances and lipsynced songs, the symbolic and emotional
drama, and the wandering story line contained in a threehour film is alien to
audiencesusedtoHollywoodproducts,yetitisahugelycommercialindustrywithan
estimated annual number of globally sold tickets of 3.6 billion as compared to 2.6
billions that of Hollywood. For more than one hundred years Bollywood mainly
servedthehomemarket,itsexportmarkethasnowbeengrowingatanimpressive
rate of 16% to 20% per annum and is well on its ways to be integrated to global
economy.Bollywoodisadistinctexampleofagrowingentertainmentindustrywhich
hasbeenessentiallyanindigenousindustrytoanemergingeconomyofIndia. 7

6
7

Op.cit.2
Lorenzen,MarkandFlorianArunTube(2007),BreakoutfromBollywood?Internationalizationof

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

The Indian film industry is built on a strong foundationthe pioneers overcame

various odds and spawned new technologies capable of improving nearly every
aspect of business, i.e. storing the moving images and integrating the same with
already prevalent rich art forms of theatre based on mythology, dance forms and
sagas of local heroes. The tamasha loving and theatre afficados welcome the
opportunity of savouring the performance of talented artists from across distant
cultural centres because it promotes crosscultural understanding and that too at
affordablecosts.
Indias tryst with films started on July 7, 1896, a few months after the Lumiere
brothers introduced the art of cinematography in Paris in 1895. Filmmakers in the
west werequick to realize the value of India as a site of filmmaking because of its
naturalbeautyandexoticcultureintheirfilmslikeCoconutFair(1897),OurIndian
Empire(1897),APanoramaofIndianScenesandProcession(1898)andPoonaRaces
98 (1898). The first Indian to make a film, called The Wrestlers (1899), was
Harishchandra S. Bhatvadekhar, a stills photographer by profession. This was
followed,in1900,bySplendidNewViewofBombayandTabootProcession,bothby
F.B.Thanawala. 8
J.F. Madan, who envisaged great business opportunities for Indian filmmaking,
establishedtheElphinstoneBioscopeCompanyin1905.ThefirstIndianfeaturefilm,
Pundalik (by R.G. Torney), was made in 1912 as a result of growing demand from
audiencestoseeIndiancharactersandexperiencesonscreen.However,itwasshot
by an Englishman and never really received the acclaim of being an independent
featurefilm.Instead,thehonourofmakingthefirstindigenousfeaturefilmgoesto
D.G.PhalkeforRajaHarishchandra,releasedin1913,whichwasacompletelyIndian
productionandwasshownasaselfcontainedworkinitsownright.Between1917
and1931,severalmanyIndiansilentmovieswereshotinMumbaiandotherregions.
Their content was inspired by Ramayana and Mahabharata, two of Indias most

Indian Film Industry, DRUID Working Paper No. 0706, Danish Research Unit for Industrial
Dynamics.
8
Acharya, Sharmistha (2004), Bollywood and Globalization, A thesis submitted to San Francisco
StateUniversity.

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

wellknown epics. In 1931, Alam Ara, Indias first talkie was madejust four years
aftertheintroductionofthefirsttalkingmovie,TheJazzSinger(1927)inNewYork,
America. In India, sound was the transformative element that led to the rapid
expansion of the nations film industrythe most productive such industry in the
worldtoday.WhileincountrieslikeJapanandFrance,talkingmovieswereslowto
take root. However, theatre music and songs, that play an integral part in Indian
culture,foundanewexpressioninthetalkiemovies.Musicandfantasyhavesince
continued to be seen as vital elements of filmic experience. Sometimes the use of
music is overdone. For example, the film Indrasabha (1932) contained 70 songs.
However, music has remained the defining element of Indian Cinema so much so
thatinarecentrelease,LOCbyJ.P.Dutta,sixtopsingershavelenttheirvoicetoa
songwhichis20minuteslongandhasbeenpicturizedoneleventopactorsofthe
Industry.
The popularity of the new medium for mass entertainment encouraged creative
filmmakers and entrepreneurs supporting them to explore new ideas beyond the
mythicalthemestodelveintosocial,politicalandgenderthemes.Itwasagainstthis
backgroundthatfilmdirectorslikeBimalRoy,RajKapoor,GuruDutt,V.Shantaram,
MehboobKhanmadefilmswhichbecamepopularbothinIndiaandabroad.
Indian film industry in regions like Tamil Nadu, Andhra, Bengal, Punjab, etc., also
cameupinquicksuccessiontoMarathiandHindiCinemaofBombay.Filmsmadein
the regional languages have been as good in content though varying in cinematic
styleandgrammar.ThecontributionsofSatyajitRay,MrinalSen,TapanSinha,Ritwik
Ghatak,AdoorGopalakrishnan,ManiRatnam,P.V.Rao,etc.,havebeeneverlasting
andhaveinfluencedthegenreofHindifilmsinmanywaysenrichingthesamewith
their flavours. The cult of Raj Kapoor, the legendary Indian actor, remains
undiminishedinRussiaandtheSovietUnion.8ThegrowthofBollywoodandRegional
Cinema in India has taken place simultaneously with the growth of industry
elsewhere and Indian Film Industry has been in the forefront of total production
since 1960 till date. The only industry that follows India in terms of production is
Hollywood, which produces 500 films per year on average and has a world wide

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audience of 2.6 billion. Indian Film Industry produces more than 1000 films on
average in a year and attracts about 3.6 billion viewers. In terms of viewership,
Hollywood was overtaken in 2004 and the dominance of Indian films on this
parametercontinues.Bollywoodmaderevenueof$1.75billionin2006,whichisonly
half the revenue of one Hollywood studio, Walt Disney made in 2006and thats
saying a lot. However, while Hollywoods market inside the U.S. has almost
saturated, Indias 500 million population under the age of 20 will ensure that the
market in India will grow rapidly in years to come. Although Hollywood produces
onlyafractionofthenumberoffilmsmadeallovertheworld,itgarnersastaggering
75%oftotalrevenues.Also,50%ofearnings(expectedtogrowto80%)comefrom
the foreign markets whereas for Bollywood it is 20%. Hollywood has an
overwhelmingdominationamongthetopgrosserallovertheworld,almostallthe
top 50 movies are made in Hollywood. It has virtually eclipsed all other film
industriesexceptBollywoodforinstance,theEuropeanfilmindustryiscutdownto
1/10thofitssizesince1910.
Theaveragecostofproducing,marketinganddistributingaHollywoodfilmismore
than US$60 million and only one out of ten succeeds. At the same time Shahrukh
KhansRa.Onehascost$30milliondollarsandisthecostliestBollywoodproduction
tilldate.50%moviesproducedinBollywoodareneverreleasedandmorethan95%
ofthosereleasedresultinlosses. 9
Historically,BollywoodaswellasHollywoodbothoperateonfullcommercialbasis
and without state subsidies. Both the clusters produce a mix of relatively big and
small budget fares followed by a relentless pursuit of blockbusters on the market
with large uncertainties with mixed results. Though, Hollywood might not be in
receipt of state subsidies, its export success has been positively influenced by
government regulations, i.e. by creating beneficial conditions for exports of
Americanproductsinindustrieswheresuchexportswouldboostthedomesticscale
economies. Film has been perceived to be exactly such an industry and Hollywood

Woke (2007), Bollywood vs Hollywood The Complete Breakdown, mutiny.wordpress.com,

February1.

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exportshavebenefitednotablyfromtheU.S.StateDepartment,theDepartmentof
CommerceandvariousU.S.embassiesinpavingthewayforU.S.filmexports.While
implementing Marshall Plan for the reconstruction of Europe in the post WWII
period, it ensured that European countries open their markets for US film exports.
State Department and Department of Commerce continued to push up their
diplomatic efforts visvis the disputes that arose with the French Film Industry 10
and lately obtaining a ruling from WTO in 2009 against China on the latters
restrictivetradepractices,preventingfreeimportofHollywoodCinemaintoChina 11 .
Bollywood, on the other side, had been at the receiving end of the Indian
governmentsapathy.Despiteitspopularityamongthemassesforitsentertainment
value, for a longtime it did not receive any encouragement from the government
andleadershipsomuchsothatithadtotraverseaperiodofeightdecadesbeforeit
was recognised as an industry eligible for availing loans from financial institutions.
Thestatetargeteditasasourceofrevenuebyimposingexcessiveentertainmenttax
and other taxes including on raw stocks and essential imports. Consequently the
industry had to fend for itself and survive. Export earnings, if any, were generated
through its efforts only. Bollywood did not figure on the radar of export earning
efforts of government of India and yet on its own momentum it maintained a
modest export business for less than 10% of its turn over till two decades back.
Bollywood industry in such circumstances remained largely fragmented and
unorganised.Intheinitialyearsthestudiosystemprevailed,i.e.whereactorswere
employees of the studios and on its payroll. After World War II the studio system
disappeared due to a combination of rising production costs caused by the war,
boominglandpricesindowntownMumbaiwheremostofthestudioswerelocated,
and,mostimportantly,theentryofanewnumberofindependentproducersafter
themigrationofentrepreneursandtalentfromtheLahoreclusterafterthepartition
of India. Newcomers challenged the integrated production companies by staying
small,outsourcingcreativeactivitiesandfacilities,andemployingshiftingfreelance

10
11

Op.cit.7
Baru,Sanjaya(2010),AWTOrulingopeningupChinatoHollywoodshouldhelpBollywoodtoo,
BusinessStandard(March15,2012).

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directorsandstaractorswhowereluredawayfromstudiosonthepromiseofhigh
remuneration. These disintegrated production companies systematically targeted
crossregional Indian markets12. This strategy resulted in formula or Masala
filmsa cocktail of romance, drama, music and comedy along with dancesong
sequences.The formula of films of that periodcould be summed up as a star, six
songs, three dances. Because of a combination of various factors and clever
marketingstrategies,Bollywoodhasnotonlymadehugeinroadsintothedomestic
Indianentertainmentmarket,buthasalsoacquiredinternationaldimensions.Inthe
star centric Bollywood films for a particular period of time a handful of male and
female star actors had been and have been playing a dominant role in the
mainstreamcinemathaninthecontemporaryHollywoodsystem.Thefeescharged
by the handful of stars have been on the rise continuously and in todays
mainstream films, such salaries may account for well over half the production
budget. 12
Unlike their counterparts in Hollywood, Star actors are cast and signed through
informal social relations, rather than through agents and lawyers. Mutual trust
between the producers and stars is considered to be of great value; therefore, for
producers of mainstream films, it is of utmost importance to maintain strong
personalrelationswiththestars.Thehighdemandofafewstarsenhancetheriskat
productionstagebecauseifastaroptsoutorplaystruant,productioncostswould
increase to such an extent that the producer may be in dire straits. Even with
changesintheindustrystructure,whichwoulddescribedinthefollowingpages,itis
consideredsafetocastanestablishedstar,bothfromthepointofviewofraising
financesandalsofromtheangleofboxofficecollections.Suchastateofaffairshas
been in existence despite the established fact that even a big star is not always a
guarantee for the box office success, and hit/flop ratio of Bollywood films is
remarkablyequaltoHollywoodfilms 13 .However,theinfluenceoffilmstarsinraising
financesforproductionhasremainedundisputed.Distributorsandexhibitersarethe
mainsourcesoffinances.Thedealsbetweentheproducersandfinancierswouldbe

12
13

Op.cit.7
Ibid.

10

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

struck at different stages of production when distributors and financiers would be

weighingthequalityofproductbeingdevelopedthroughpreviews.Inthesegment
ofraisingfinancesaswell,personalrelationshipamongthepartnerhadbeenplaying
dominantanddeterminingrole.Uncoveredfinanceshadtobemetthroughsources
otherthanthechainofproducers,distributorsandexhibitors.Suchsupplementary
financial sources were not legal money. Even such a supplemental funding was
throughextendednetworksystemratherthanthroughlegallydrawncontracts.
The compulsion of means other than legal was thus a forced necessity which
inevitably led to the involvement of underworld in several productions. In the
nineties, many such links came to the fore in the shape of alleged links between
Sanjay Dutt and the underworld and the mysterious death of actress Divya Bharti.
The underworld resorted to extortion and the owner of Tseries music company
Gulshan Kumar was gunned down for not submitting to extortion demands. Actor,
produceranddirectorRakeshRoshanwasfiredatinJanuary2000.Actors,towhom
underworld took a fancy, were promoted. In 2000, the film prints of Chori Chori
Chupke Chupke were confiscated by CBI and later when the film was released,
revenue generated was kept by the court; the Director and Producer faced
imprisonments.SuchinstancesareenoughtoillustratethattheBollywoodindustry
wasmurkyinthisdecade 14 .However,inthedecadeoftheninetiesmanysignificant
economic and technology changes were ushered in India. Indian Economy was
openedtohavegloballinkswhichbroughtinitswakegrowthinIndianMiddleClass
onaccountofrapideconomicgrowth.Thetelevisionindustrywasderegulatedand
cableandsatellite(paychannels)televisionnetworkwereavailableondomesticT.V.
sets. With this single step Hollywood productions not only came to Indian homes,
butalsoenhancedrevenuegenerationforBollywoodfilmindustry.Also,Hollywood
nowcompetedwithIndiancinema.Forinstance,Spidermanreleasedin2004earned
Rs10croreinthefirstweekitselfthoughithadtocompetewiththesuperhitfilm

14

CorporatizationoftheIndianFilmIndustry,AUSIB,2010.

11

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Mujhse Shadi Karogi. Now, Hollywood films such as 2012 and Avatar have set the
trendofsimultaneousreleasesinIndiawithgrosscollectionsof100croreeach. 15
ThesetwofilmsalsosetthetrendofreleaseofHollywoodfilmsdubbedinHindiand
othermajorregionallanguages,bothinmultiplexesaswellassinglescreen.Astage
arrivedinDecember2011whenTomCruisestarrerHollywoodmoviewasreleasedin
IndiaaheadofitsreleaseinU.S.andcompetedwithDon2starringShahrukhKhan.
With the steadily increasing presence of Hollywood, Bollywood had inevitably to
adopt a model which reduces its risks by bringing necessary professionalism and
synergisingavailableresources.Suchanapproachrequiresastructuralchangeinthe
BollywoodIndustry.Theurgencytowardscorporatizationmodelwasalsotriggered
by the rapidly increasing number of revenue generating windows on the back of
explosion in distribution and exhibition platforms in multiple manifestations like
internet, mobile phones, computers, compact discs, satellite and cable channels,
broadbandavailabilityallatincreasinglydecreasingcoststovastpopulationinall
corners.Italsohasbecomepossibletoincreasethenumberofscreensfromexisting
13000tomanifoldwiththecomingupofmultiplexes,wherethenumberofscreens
range from 3 to 11. More screens mean that more films or prints can be shown
simultaneously which raises the turnover and also lessens the lure of piracy. Even
thepublicswillingnesstopay3to4timesmorefortheirticketsinmultiplexesthan
in single screen cinemas has created a significant avenue for multiplying revenue
generationit is indeed remarkable! Availability of multiple screens in a multiplex
also opens avenues for independent producers of modest means to exhibit their
work.Tocapitall,distributioncostshavereducedtoaninsignificantlevelasfaras
digital cinemas are concerned where films can be exhibited through satellite and
simultaneously viewers everywhere can have the advantage of quality viewing. As
more viewers flock to cinemas and multiplexes, more revenues are forecast and
fastergrowthisprojected.
Thetransitiontodigitalcinemaprojectionhasentirelychangedthebusinessmodel
ofthissegmentforthebetter.WhenSholaywasreleasedinAugust1975,onlyfour

15

Ibid.

12

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

prints were in circulationone for Delhi, one for Uttar Pradesh, and two for
Bombay. A single print was screened across two cinema halls in a metro city by
shuttling the reels on motorcycles from one hall to the other. The returns were
slower and there was wear and tear of reels after about 350400 screenings. This
scenariocanbecomparedwiththelatestreleaseslikeBodyguardwhenover2000
prints were released, out of which 1483 were digital. Four weeks into release, the
movie grossed over 150 crore. 16 Ra.One set a higher benchmark when it released
with3500prints.Thelatestfilmshavebeenhittingscreensalloverthecountryfar
and wide, on the same day. It is anticipated that 90% of screens in the next two
yearswouldbedigital.
In view of such emerging advantages, it makes sense for the corporate sector to
enter all three segments, namely production, distribution and exhibitions. The
processofcorporatizationwasfacilitatedbytherecognitionoffilmsasanIndustry
whichwouldresultintheflowofcredittothissectorandalsobuildwealththrough
otherfinancialinstrumentsaswereavailabletootherinstitutions.Governmentalso
permitted100%flowofFDIwhichisanenablingprovisionfortheforeigncompanies
to independently produce films across India or can enter into coproduction
agreements.
Over the years, corporatization has taken place in a big way and many veteran
producershavesetuptheirowncorporatecompaniesandtheirsubsidiariestocover
various areas of film production, distribution, exhibition and many other related
areas.Manyestablishedbusinesshouseshavealsoenteredthefrayandthattooina
significantway,and,havecreatedinterestsabroadaswelltoboostexportearnings.
Some notable Houses that have come into being are: 1. AGPPL; 2. Aamir Khan
Productions; 3. Mukta Arts; 4. Red Chillies Entertainment; 5. Percept Picture
Company; 6. Yash Raj Films; 7. Roopesh Rai Production; 8. White Feather Films; 9.
Key Sera Sera Film; 10. Adlabs Studio; 11. Vishal Films; 12. Devgan Films; 13. UTV
Motion Pictures; 14. Dharma Productions; 15. Pritish Nandi Communications; 16.

16

Chumbhale, Ameya (2011), Transition to digital film projection: Is the cinema as we knew it
comingtoanend?TheEconomicTimes.

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

Popcorn Entertainment; 17. Base Industries Group; 18. B.R. Films; 19. Balaji Tele
Films; 20. Rajshri Films; 21 Super Cassettes Industries Ltd. (TSeries); 22. Shri
Ashtavinayak Cine Vision Ltd.; 23. Madras Talkies; 24. JP Films; 25. Film Kraft
Productions;26.ExcelFilms;27.RGVProductions;28.KaleidoscopeFilms;29.India
ShowbizNetworkLtd.
Themajorandbiggesteffectofcorporatizationhasbeenthatfinancewasprocured
through legitimate means which has significantly reduced the dependence of
producers on the illegal services of money lenders, and consequently,the demand
for protection from the underworld has come down significantly. With
corporatizationtherehasbeenstreamliningofthesupplychainandithasbecome
possibleproducefilmsinadefinitetimeframe,whichmeansreductionsincostsand
flow of returns is quicker. Professionalism is being shown by actors as well as the
rest of the crew. A culture is fast developing where actors shoot for one film at a
timeandsignafilmonlyaftergettingaboundscript,eveniftheyarejustbeginners
intheindustry.Forexample,actorImranKhan,whoisjust3filmsold,signsonevery
pageofascriptwhilesigninganyfilm.Thismakesbindingonthedirectortoconsult
theactorevenifhehastochangeonesentenceinthescript. 17
Independentproducersformedgroupsandcorporations.Anewbusinessmodelhas
comeintoplay.Corporationswhohadnofilmmakingexperiencewouldcollaborate
with independent producers to make films. For a film production to run smoothly
boththeproducerandthedirectorofthefilmhavetobetheverybestoffriendsfor
the relationship to work, while the corporate companies would finance as well as
lookafterotheraspectsofthefilm.Atthistime,whencostshaveescalatedbecause
of high fees charged by actors and directors and also due to need for highcalibre
publicity campaigns in expectation of raising finances from out of demand sides in
advanceoftheactualreleaseoffilms,therearehardlyindependentproducers.Most
ofthemhaveformedtheirowncompanies,orworkwithothercorporatehouses.

17

Op.cit.4

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

Eventhestaractorshavedevisedstrategiestoprovidecomforttotheproducersby
offering to participate in the revenue generation of their productions rather than
charging their hefty fees during the stages of signing and production. There have
been instances when stars have collaborated with the producers without charging
any money initially and signing on the condition of sharing the profits, say, 33%.
Thus,theproduceralsogetstoreducehisriskconsiderablyandonafilmssuccess,
theactorgoeshomelaughingallthewaywithboxesfullofmoney. 18
Thus,withtheliberalisationofeconomybeinglinkedtoworldeconomy,therehas
been a change in the structure of Bollywood industry at least in terms of more
professionalism among actors and directors and also towards the making of films
usingthebesttechnologieswithinevitableoptimismandconfidence.Atthisstageof
development, Bollywood industry is corporatizing itself with its traditional
transactionalbehaviourofincorporatingthesocialnetworkanditsacceptanceofthe
dominance of star actors and star directors. Thus, structurally though it is tending
towards Hollywood, yet it still maintains its traditional strengths in alignment with
therestructuredstructure.
Withitsnewlyestablishedconfidenceandrestructured,Bollywoodhastakenastep
forwardtomakeitsimpactontheglobalscenebyenhancingthevisualimpactofits
presentationsbyadaptinglatesttechnologiesfromHollywoodandotherglobalfilm
clusters and thereby upgrading the technical base of the industry and creating a
network of wellequipped and trained manpower within the country. The strategy
for producing trained technical manpower in Bollywood is a farsighted one and is
synergetic with the strong manpower base in India. Such a strategy has already
startedyieldingdividends.OscarwinningspecialeffectsoftheGoldenCompassthe
Hollywoodblockbusterthattook$370millionattheboxofficewereputtogether
inthatchedvillagehutsinIndia.Thehutsarereplicasofruraldwellingsthathave
beenmadeintostylisedofficecubicles.TheyarelocatedintheoutskirtsofMumbai,
fromwhereRhythmandHues,theleadingLosAngelesbasedspecialeffectsstudio
outsources worldclass visual pyrotechnics with the help of its 250 strong Indian

18

Ibid.

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

staff,whichhunchesovercomputersandworksovertime,therebydoingthejobata
fraction of normal cost. Further since the coming of the digital technology, visual
effect companies such as Prima Focus, Maya and several others are generating
worldclassspecialeffectsfortheindigenousfilmindustry,therebysavingthemthe
hassleofoutsourcingthematahugecostfromthewest. 19
Bollywood has been the fastest in tapping into new global business opportunities
ridingonaclearblendofeasterntalentandwesternexpertisetocreateaseamless
viewing experience. Bollywood cluster and other regional clusters leveraged the
benefits of what can be termed as polycentric innovation. A large number of films
fromtheIndianclustersharnessedandnetworkedgloballydistributedtalent,ideas,
and creativity to codevelop radically new products, services processes and even
business models. Media companies in Bollywood and other clusters have since
startedharnessingandintegratinggloballydistributedcreativityintoacoherentand
synergetic innovation network. This polycentric innovation, which extends far
beyondsuperficialBollywood/Hollywoodalliancesormerebackendcollaboration,is
beingpioneeredbycompaniesfromIndia.Suchalargerthanlifeemanationofthis
bigbangcollaborationhasbeenEndhiran(English:Robot),Asiasmostexpensivefilm
till 2010, which was released on October 1, 2010. Produced by Chennai based Sun
Pictures and globally distributed by HBO, Endhiran was the collective output of a
truly international crew. Not only does this scifi thriller feature Bollywood style
songs by Oscar winner A.R. Rahman (Slumdog Millionaire) and King Fu Style fight
sceneschoreographedbyHongKonglegendYuenWooping;,italsoboastsofmind
bogglinganimationandspecialeffectsdonebyStanWinstonStudio(ofTerminator
and Jurassic Park fame), and eyepopping costume designs by Mary E. Vogt (The
Matrix;MeninBlack),Endhiranbecameanembankmentofpolycentricinnovation,
cleverlyblendingEasterntalentwithWesternexperiencethatnosingleregioncould
have concocted on its own. The effort lends evidence to the fact that the
monocentric film industry of the 20th century where all creative work (concept
development, post production, 3D) was done in the West was shifting to a

19

Bhatt,Mahesh(2008),BollywoodandGlobalisation,BusinessLine,October10.

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

polycentricworldof21stcenturywherenewinnovationhubswereemerginginIndia,
Argentina,ChinaandNewZealand(TheLordoftheRings).Thecreativeworkersin
thesehubsaugmentthecapabilitiesoftheirpeersinestablishedhubsintheUSand
Europe by offering complementary skills, expertise and mindset as well as cost
effectiveness and international aesthetics. The new polycentric mindset in the film
industry is also equalled by the rapidly dropping costs of global communication,
which has made realtime collaboration among creative artists across borders
seamless.Now,adirectorinIndiacansimultaneouslyreviewandevenmodifyafilm
clipwithaproductiondesignerinHollywoodviaashareddigitalassetmanagement
system.Creativedifferencesbetweenplayersacrosstheglobewouldenablethemall
to learn or unlearn as per individuals creative mind set which would finally enrich
everyoneandlaythenewfoundationforglobalcompetitiveness.
Theraceisalreadyonforbuildingacompetitiveglobalnetwork.InIndia,therehave
beensignificantinitiativestowardsthisend.
RelianceMediaWorksisofferingintegrated3DservicesoutofitsBurbank,California
facilitywhileusingateamofmorethanfourhundred3DartistsinIndia.Thesheer
potentialofIndiatoofferamassofvisualeffectartistsmakesIndiaveryattractive
forfilmmakerswho,intheaftermathofAvatarsphenomenalsuccess,areviewingto
integrateevermorecomplex3Dandvisualeffectsintheirfilms.
PrimefocusTechnologies,aglobalproductionhouse,iscreatingefficienciesthrough
the complementary skills of teams located across India, U.K., Canada and US and
leveraging technology strengths in India as its subsidiary. It has developed
proprietarydigitalassetmanagementsystems.
British visual effects expert Charles Darby (Matrix, Harry Potter and The Goblet of
Fire)hassetupoperationsinMumbaiwithEyeqube,aspecialeffectsdesignstudio
financed by Eros International, an Indiaheadquartered production and distribution

17

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

companyDarbybelievesthatEyequbecanproducequalityworkthatwouldrivalany
HollywoodLondonstudio. 20
Recently released film Ra.One offered by Red Chillies Entertainment and Eros
InternationalhasfurtherimproveduponthegainsofEndhiran(Robot)inreaffirming
the capacity of Bollywood in understanding and coordinating global talent in
creativity and ICT technologies, seeking international viewership and crafting
business models to generate unprecedented revenues. Producers have been
encouraged to take well worth risks by making investments to the tune of Rs 150
crore.Ra.Onemoviecrewconsistedof5,000membersdrawnfromIndia,Italyand
the U.S., and was put together by more than 1,000 people working in around 15
primestudioroomsacrosstheworld.The3Dversionofthemovieattractedhigher
occupancylevelthanthe2Dversion.Duetotherevivedinterestin3Dtechnologyin
India,themakersofthefilmconvertedsomeportionsofthemovieinto3D,withthe
collaboration of approximately 1,000 people. The conversion was done by Prime
focus which had earlier worked on 3D format movies like The Chronicles of Narnia
and Transformers. Jeffrey Kleiser, the man behind the visual effects of 1993
HollywoodreleaseStargatewashiredtosupervisespecialeffects;heledateamof
750 technicians to accomplish the task. International singer Akon was roped in to
lendhisvoicetothesongsChamakChalloandCriminal.
Such block blustering efforts of roping in dispersed technologies enrich the
Bollywood technicians experiences and also that of the media companies which
already have the vision of reoffering their newfound skills globally. In a way, the
spinoffeffecthasledtoassetcreationwithintheindustry.
Ra.One already has the distinction of being the costliest movie so far produced in
India.Ithasbeenreleasedinboth2Dand3Dformatsacross3,200screensinIndia,
which include the dubbed versions in Tamil, Telugu and German. The film was
premieredinDubai,London,NewYorkandTorontoinanefforttoacknowledgethe

20

Ahuja, Simone and Navi Radjou (2010), How India is reshaping global film industry, Rediff
Business,October1,2010.

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

presence of South Asian communities in these countries who form the bulk of
viewershipabroad.
Ra.Onealsobrokenewgroundinthefieldofpublicityblitzandprereleasesales.It
setapartRs40croreaspublicitybudgetwhichisabout30%ofthetotalcostofthe
project and by Bollywood standards it has been unprecedented. The campaign
aimedatdomesticandforeignviewershasbeenthelongestdurationpromotionin
the Bollywood history and has been the most comprehensive and all pervasive
among peoples lives. Apart from usual presale contracts of Satellite rights, music
rights, etc., it launched video games with Sony Computer Entertainment Europe
(SCEE)whichisthefullcyclePlayStation3bluraydiscgamedevelopedbyanIndian
DeveloperandalsothefirstgametobedubbedbyaBollywoodsuperstar.Besides,
in collaboration with UTV digital, Ra.One game was launched across platforms like
mobilestabletPCs,DTH,etc.Comicserialsbasedonthefilmscharactershavebeen
launchedincollaborationwithUTVIndiaGames.Merchandiserelatingtothefilmsis
alsobeingmarketed.
Thus,Ra.Onehasnotonlyfurtheredtheconceptofexcellencethroughpolycentric
creativity, but has also opened vistas for new marketing items riding on ICT
technologieswhichwouldbecoveringtherisksonheavyinvestmentsinvolved.Thus,
morerevenuegeneratingwindowshavebeeninnovated. 21
Hollywood and Bollywood are vying with each other; sometimes collaborating and
often competing for the same market space in a healthy manner. The upcoming
improvements in infrastructure in distribution and exhibition segments have
encouraged Hollywood to release their Tom Cruise starrer Mission Impossible 4:
GhostProtocolinIndiaaheadofitsreleaseinUSAandalsopresentingTomCruisein
persononthisoccasion.Speculationshadbeenthatthisfilmsreleasewaspreponed
toDecember16,2011fromDecember21,2011toavoidcompetitionwiththeShah
Rukh starrer Don2 (also scheduled for release on December 21). The veracity of
suchspeculationapart,thefactremainthatitisdemonstrativeofasenseofintense

21

Ra.One,Wikipedia,TheFreeEncyclopedia.

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

competition between the two clusters that have come into play. The bottom line
remains that the coming together of the two entertainment clusters of Bollywood
and Hollywood and their growth benefits Indias economy. According to a report
prepared by PricewaterhouseCoopers (PwC) and released in 2011, Hollywood and
otherforeignfilmscontributedabout$60.8million(Rs304crore)toIndiaseconomy
in 200809 and it is expected to steadily rise. Hollywood has been devising
innovative strategies of dubbing their releases in regional languages to increase
viewership; as a result, its contribution to Indian economy would be on the rise
steadily. Bollywood and regional Cinemas and T.V. industry contributed over $6.2
billion (Rs 28305 crore) to the Indian Economy in the year 200809 giving
employmentto1.8millionpeople.Thus,thefilmandtelevisionindustryhascometo
contributesubstantiallytotheoverallIndianeconomy.Thecombinedrevenuesfrom
thissegmentwereoverUS$7.7billion(Rs35000crore)intheyear2008andwould
berisingtoUS$13billion(Rs60,000crore)by2013.
Thus, the earlier held fear that if Hollywood has, in terms of WTO principles, the
liberty of distributing and exhibiting their products, it would hurt the growth of
Bollywood,hasprovedtobemisplaced.Rather,Bollywoodhasmarketeditselfasa
Diaspora destination riding on the skilled adaptation of ICT technologies and
obtainingaccesstoforeigntechniques,and,hascreatedapoolofskilledmanpower
tooffertheirservicesabroadoncompetitiverates.Theresultantenhancedpleasure
of visual presentation from Bollywood has encouraged viewers within the country
andabroadtopayincreasedentrancefeeattheboxoffice.
There is a wellmeaning point of view being expressed at this point of time that
globalizationhascatapultedIndianfilmsintheglobalmarketandaudiences;ithas
altered the basic spirit of the domestic audience that was its fundamental support
base.Inotherwords,obeyingthelawsoffinancecapitalofthedominantcapitalist
order of the West, Indian film industry transformed its aesthetics and thematic
occupations. The laws of the capitalist world redefined the form and content of
Indian Cinema. One of the huge manifestations of this change has been the
emergence of super budget films. It is not just the crores of rupees spent on

20

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

productionoffilmsthatoneneedstounderstandinthiscontext.Ithasalteredthe
sensibilitiesoftheIndianaudienceandalmostwipedoutfilmsmadeonverymodest
financial and technical resources and erased themes that dealt with the lives of
millionsofIndianswhobelongedtothemiddleandlowermiddleclasses.Thepoor,
the marginalised and the oppressed, of course, have been entirely liquidated. All
these sections of society that hadbeen the main patrons of the Indian Cinema for
decades did not matter to the Indian Cinema of the period of globalisation, which
generateditsresourcesandtriedtoaugmentitscapitalfrominternationalcentres.
ThephenomenonistruemostlyofBollywood,whichparadesitselfastheNational
cinema and films made in Tamil, Telugu and Kannada, to name a few, that have
always been treated as the Regional cinema. In the new economic order, both
National and Regional cinema converged in terms of aesthetics and thematic
content,caughtastheywereinthestrongcurrentofglobalcapital.Themainstream
Indian Cinema has been seeing its survival only by trying to match the Hollywood
Cinemathat,morethaneverbefore,invadedallthemarketsoftheworld,including
the strong and well established cosmos of the French Cinema that for a long time
hadbeensignpostsofgoodandseriouscinema.
SuchaviewseesagreatcrisisoftheIndianCinemainthatseriousandcommitted
filmmakers in the Indian languages find it almost impossible to cope with the
demandsmadeonthembyanindustrythatonlynourishesandpromotesincredibly
highbudgetfilms,ontheonehand,and,ontheother,thetasteofanaudiencethat
relishes only spectacular, glamorous and stunning visuals and accepts only a
glamourisedvirtualrealityastheauthenticrepresentationoflife.Thepace,tempo,
style, locale, context and experience of films are totally regulated by highspeed
technology, which controls the very nature of film making. The story of the
mainstream Indian Cinema is all about huge investment in expectation of heavy
returns. The corporatization of the Indian Cinema is only part of the oligarchical
natureandspiritofthegeneralcorporateworld.
While the above criticism has its place, there are filmmakers, and there would be
many,whowouldjointheirranksanddealwiththemesofsocialjusticeandequality

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

andquestiontheeconomicandpoliticalchoicesofrulingclassesandpowers.There
would be filmmakers who would be appalled by the plight of tribals and other
oppressedclassesandcastes,andwouldprotestagainsttheunrealuniversethatis
disseminated by the rich and powerful mainstream cinema. However, the budget
availablewithsuchfilmmakerswouldbelimited.Technologywouldcometoassist
suchgroupofproducerstogiveexpressiontotheircreativitythroughthemediumof
cinema.AfilmlikeStanleyKaDabbawasmadeusingwhatisessentiallyanominal
stilldigitalcameraoftheDSLRvarietyandputtingitintovideorecordmodelandthe
techniqueiscalledasDSLRfilmmaking.ThecamerausedforthisfilmisaCanon7D
camerawhichcostsRs1,38,000/andcanberentedforaslowasRs890/perday.
The colour quality and shots in the film are as good as a movie made with an
expensivecamera.TeluguMovie,DongalaMutha,wasalsoshotthroughthistypeof
camera. Superstar cast of the movie did not charge any fee at the stage of
productionandworkedontermsofsharingtheprofits.Themoviewasproducedon
a shoe string budget. The film turned out to be a box office hit and the rates of
returnontheinvestmentwerephenomenal.SimilarwasthesuccessstoryofStanley
KaDabba. 22
Thus if a creative person has got content, technology enables him to turn out his
productiononhisowninitiativewhichwouldnothavebeenpossibleearlier.Itopens
upnewavenuesofcreativityforsuchpersonsandtheycanselltheirproductsina
variety of ways, including by participating in specialised film festivals and gaining
publicity through word of mouth. The finished product is easier to sell to an
enterprisingdistributorthansellinganideatoafilmproducer.
Newtechnologyapplicationallowssmallbudgetcreativefilmmakerstoexhibittheir
creations (110 minutes) on 3G enabled mobile phones, which represent a much
greater market for film than movie theatres or Pcs. If content is good, interesting,
humorous, satirical, etc., it would be forwarded and may be loaded on social
network giving wide publicity to the creator of such works. This would be a great

22

Pulugurtha,ShivCharan(2011),DemocratizingfilmmakingMoviemakingmadeeasy,Gomolo,
September6.

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

wayofinteractingwiththewideaudienceandgettingonestalentnoticedforbetter
opportunities. Thus, with the integration of 7D type Camera technology and 3G
basednetworks,filmmakingwouldgettrulydemocratised,especiallywhencreative
persons can give visual expression to their perceptions of the world. They do not
havetobeslavestobigbudgets.
Despite the critical view on Mainstream Cinema that in pursuit of redefining its
success stories it is compromising with quality and sidestepping the real life
situations, there have been acclaimed productions from the mainstream cinema
without losing sight of revenue generation at the box office. Such movies leave
behindlessonslikeselfconfidence,motivation,leadershipqualitiesandmore,giving
adrivetomainstreamcinematosucceed.SomesuchfilmsareTaareZameenPar,3
Idiots,ChakDeIndia,Iqbal,Laagan,Swades,RangDeBasanti,Yuva,Black,Guzarish,
IamKalam,Lakshya,Paheli,etc.Mostoftheseacclaimedqualitymovieswerenot
lackinginrevenuegeneration;infact3Idiotshadsetabenchmarkforsuccess,and,
Lagaan, besides being a huge grosser had been among the last four films in its
categoryatOscar.ThesemovieswerebasedonIndiaandtouchedtheconscienceof
allclassesofviewers.
Therefore, while constructive criticism is directed towards quality enhancement,
mainstream Indian cinema has focused on its unique strengths by absorbing and
adapting technologies to consolidate its position to take storytelling and
scriptwritingskillstonewfrontiersthatarerecognisedandappreciatedbythewider
audienceextending beyond our neighbourhood or Indian diasporas. In this vein,
veterans like Mahesh Bhatt observe that while adoption of stateoftheart
technologies, both at the production stages and distribution chain, will certainly
boostboxofficesalesforBollywoodmoviesandIndiawillexpandataprojected15%
compound annual rate during the next five years propelling it ahead of many
established clusters of film production across the globe to become the largest film
entertainmentmarketinAsianexttoHollywood,ithastoconfrontoneblunttruth.
Foracountrythatmakesamaximumnumberoffilmsandhasaworldclasspoolof
skilledworkersandtechnicians,ithasabsolutelynothingtooffertheworldmarket

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

in terms of its products. According to Bhatt, we are bankrupt in our story

department;heattributesthefailureofDronatothelackofstorytellingtechniques,
thoughithighonspecialeffects.Similarviewshavealsobeenexpressedbyveterans
likeYashChopraandShekharKapur.
The urgentneed of the hour is to make hugeinvestments in our storytelling skills.
BollywoodwouldbeaforcetoreckonwithwhenHollywoodmogulscometoIndiato
get a script written by an Indian writer and a film directed by an Indian director.
WesterneducatedwriterslikeManojNightShyamalanhavebeenabletocompete
onthatturfveryably.ThechangethatneedstohappeninIndiaisonethatneedsto
come from within the heart of our education system and mind sets of the film
entrepreneurs. The day we think in our own voice will be the day that Bollywood
would break through creatively. Lets face itBollywood films are a big craze only
with people of Asian origin. The affluent westerner just does not seem to be
interestedinBollywoodmovies.Bollywoodstillhasmilestogo.Bollywoodisonthe
righttrackandisposedforatakeofftocompetewiththebestonceitstrengthens
its critical thinking skills as well as scriptwriting and storytelling skills, which have
universalappeal.Bollywoodhascreatedatremendousfeelgoodfactoraboutitself
among governments around the world, especially in those countries that Indian
filmmakers scout for exotic locales for shooting their films. The exotic locations
abroad,asseeninmovies,booststourism,tradeandcommerceonaccountofthe
Indianmiddleclassmoviegoerswhoareeagertospendtheirnewfounddisposable
incomebyflockingtosuchlocales.RecognisingthepotentialofBollywoodinplaying
a role in boosting their economy, the host countries like Japan, Switzerland,
Germany, and Australia vie with one another in extending their production
facilitationstotheIndianproductioncompanies.GovernmentofIndiahasalsofinally
come to recognise the role that the Indian films can play in furthering friendship
acrossthecontinentsbyofferingaglimpseofthecountrythroughtheentertaining
media.Ithassignedbilateralagreementswithdevelopedanddevelopingcountries
onfilmsandsomeoftheseagreementsaretowardsprovidingreciprocalincentives
forfilmproductionandfilmcoproductionbetweenthesigningcountries.

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BollywoodontheWingsofTechnologyanditsContributiontoEconomy

While the menace of piracy would get significantly reduced with the adoption of
technology, Government would do well to provide incentives to single screen
cinemas to modernise their setups and equip them for digitized screening and
creatingmultiplescreensbyofferingthemtoavailoflongtermconcessionalloans
andtaxbreaks,besidesprovidingconcessiononcustomdutiesonimportofrelated
equipments. States, in recognition of the potential of film industry to create more
jobsinthissectorandspinoffsectors,needtosoftentheimpactofentertainment
taxparticularlywhenthereductioninrateswouldbecompensatedbytheincreases
in basic prices of tickets on account of enhanced facilities and visual treat that
viewerswouldgettoexperienceonthemodernisationoftheatresashasbeenthe
experience with multiplexes where viewers have not been deterred by high ticket
prices. To sum it up, one can make a statement with fair certainty that Bollywood
industryandalsotheregionalcinemaindustryhaseverythinggoingforthembeits
regulationsallowingforeigninvestment,theimpetusfromeconomy,thedigitallife
styleandspendinghabitsofconsumers,andwindowsofrevenueearningsenabled
by advances in technology. Cash growth potential is tremendous and there are
opportunities.Thereistremendousgoodwillfortheindustrywithinthecountryand
abroad,includingtheforeigngovernments.Governmentonitspartshouldbeready
to remove impediments by providing necessary fiscal incentives towards
modernisation and reducing the rates of taxation. The industry is well poised to
provideopportunitiestoproducersofhighbudgetfilmsandalsothosewhohaveno
assets other than creativity and the urge to go forward. There are appropriate
technologies and platforms for every creative effort. Bollywood as well as regional
cinemahavethepotentialtobethestarperformersintheIndianEconomyandthey
woulddowondersoncetheyimproveupontheirtechniquesofstorytellingthrough
betterscriptingandthuscatertoaglobalaudiencewhichhascapacitytorewardthe
filmindustryimmenselybutthisvastpotentialhasbeenvirtuallyuntappedtodate.

25