Tuesday, November 5

Report: Bollywood revenues may cross Rs 19,300 cr by FY17

Mumbai, Jan 4 (PTI) Revenues from Indian Film industry, Bollywood, are likely to cross Rs 19,300 crore by next fiscal, owing to aggressive marketing campaigns, growing contribution from overseas markets and improved quality of movies, says a study.

The current estimated size of Bollywood is about Rs 15,500 crore. An increased number of multiplexes and growing digitisation in the industry are also contributing to the rise in revenue.

“Box office collections in India that are estimated at over Rs 11,500 crore are likely to cross Rs 14,200 crore mark by 2017 and will account for about 74 per buy cialis online cent of the majority of Bollywood revenues,” said the joint study conducted by Assocham and Deloitte.

The industry s revenues from overseas box office collections are likely to cross Rs 1,300 crore from the current size of about Rs 1,100 crore, it said.

Rising demand for movies on TV along with growing penetration of smartphones across the country will spur growth in cable and satellite rights.

Online and digital aggregation revenues are likely to grow at a compounded annual growth rate of about 15 per cent till 2017, it said.

The study noted that the home video industry will further shrink at a CAGR of 10 percent due to increasing piracy and growing popularity of digital platforms.

“Home video has lost share to video on demand (VoD) through direct to home (DTH) operators and over the top (OTT) platforms,” the study added.

Noting that the regional movies are gaining popularity in India and abroad, it said that cinema in southern India especially Tamil and Telugu may soon dethrone Bollywood from the top spot which accounts for 43 per cent share in terms of box office collections by language.

“Large national producers plan to spend 20 percent of their annual budgets on regional cinema,” it said.