Bollywood...Waiting for that happy ending March 2018 issue

Bollywood started getting a lot more prominence in the West starting the early 90s thanks to economic liberalisation, which also coincided with the success of Aishwarya Rai and Sushmita Sen at international beauty pageants

Bollywood...Waiting for that happy ending

A superhero, preferably a Khan or a Kapoor, a leading lady with an hourglass figure, a strict father, a teary-eyed mother, a lustful bad guy, couple of comics, some running around a tree, lots of drama, not to forget an item number, and there’s a Bollywood blockbuster ready to gross a few hundred crores. But what about overseas audiences? Shouldn’t Bollywood make its movies keeping a more diverse viewer base in mind? And won’t that ensure it earns those hundreds of crores in greenbacks? This festival season, The Dollar Business does the unusual and walks the Bollywood red carpet. Of course, to figure out its overseas business besides leaving behind some boot marks

Vanita Peter D’souza | @TheDollarBiz

 

  Of course, no matter how much the lack of content in a lot of what Bollywood dishes out is ridiculed, every film needs a script. While a lot of them come from the Javed Akhtars, Salim Khans and Anurag Kashyaps, a lot of them also come from Hollywood blockbusters. We are not talking about plagiarism – “inspiration” in Bollywood lingo – but legitimate remakes. And interestingly, Bollywood is increasingly looking out beyond Hollywood for such remakes. Speaking to The Dollar Business, Vivek Rangachari, Producer, DAR Motion Pictures, said, “Nowadays, people are looking out for not only Hollywood films, but also Chinese, Korean and other foreign language films.” Rolling However, a good story alone cannot ensure a blockbuster, at least not in Bollywood. It takes good music, top quality cinematography, nice locations, special effects and several other such ingredients to make that Diwali release. In some genres like horror, these technical inputs make all the difference. And hence, Bollywood, often, opts for foreign technicians, who are far more experienced in such stuff. Sometimes, these foreign technicians are hired even for regular movies, just to give that ‘feeling’. One example of such a movie is D-Day, which released in July 2013. To shoot certain sequences of the movie, its producers, DAR Motion Pictures had hired the action director Tom Struthers, who is renowned for movies like Inception, The Dark Knight and The Dark Knight Rises. Explaining the bigger picture in such partnerships, Rangachari said these technicians are here to explore Bollywood and establish a base. “They are not here to do one film and go back. They want to setup a base and do 10 films (say), few years down the line,” he added. Shooting with international film technicians also helps Bollywood connect with international audiences, Rangachari feels. (Read exclusive interview below)  

“In the year 2013, Bollywood earned almost 30% of its revenue from Abroad”

  Light, Camera

Does this mean Indian technicians are not good enough? Aashish Singh, Vice President (Production), Yash Raj Films, is a bit guarded in his response to the question. “A Hollywood technician is more qualified and experienced than his Indian counterpart. But he is more qualified only because he has seen a different kind and scale of work. One of the main reasons why the industry imports technicians is to give the film a new edge, a new look and a new feel,” Singh told The Dollar Business. But what about equipment? Once again, Bollywood relies on imports. For cameras, it goes for names like Arri Alexa, Red Digital Cinema, and Canon. For lighting, it opts for Kino Flo and Canara Lighting. Similarly, technocranes are largely bought from Supertechno, ultra and master prime lenses are imported from Ari International, optimo zooms are Angenieux and dollies from Chapman-Leonard or Panthers. This, according to Tejas Pratap Karguppikar, Assistant Digital Imaging Technician, Prasad Labs. Karguppikar added that apart from equipment, editing software like Final Cut Pro, Avis and Adobe Premier Pro are also purchased from abroad.

Bollwood3-The-Dollar-Business While Bollywood has been shooting in overseas locations since a very long time and foreign governments have been rolling out the red carpet for the industry, a foreign production house, trying to shoot in India, finds it to be a very cumbersome and tiring affair

Action

Although a good script, fine technicians and modern equipment are important elements needed in a movie, the factor that is quite often the biggest crowd puller is, of course, actors. While Bollywood actors have long been acting in India-centric Hollywood films (who can forget Om Puri in City of Joy and Anil Kapoor in Slumdog Millionaire), there have also been instances of “gora” actors in Bollywood movies – Paul Blackthrone in Lagaan, Steven Mackintosh in Rang De Basanti and Sylvester Stallone and Denise Richards in Kambakkht Ishq are some instances that readily come to mind. Speaking to The Dollar Business, Avtar Panesar, Vice President (International Operations), Yash Raj Films said, “If an actor fits the bill, why shouldn’t we get them onboard. We just look at them as actors. We have Ali Zafar, who is a big star in Pakistan, in our next film. This should help our business in Pakistan, where he has a massive fan following.” (Read exclusive interview below)  

“Bollywood’s revenue in 2013 was Rs.3,500 crores; of that, about 30% came from overseas”

Make in India? Last, but not the least, a typical Bollywood movie needs great locations since the hero staying in a Dadar chawl and the queen of his hearts living in Carter Road, might suddenly dream of breaking into a dance number. And of course, they can’t dance in Juhu Chowpatty or Borivali National Park, can they? They need the Swiss Alps, the back roads or Prague or, at least, the Greek Island of Milos for the ‘feeling’. So, while on one hand, PM Modi has been asking the whole world to ‘Make in India’, the Indian film industry doesn’t seem to consider a movie complete, without at least a few scenes shot in foreign locations. Speak to production houses and they lay the blame squarely on the difficulty in getting permission to shoot outdoors in India, while at the same time, highlighting how foreign countries are rolling out the red carpet for the shooting of Bollywood movies. Forget permissions, several countries also offer major incentives like cash back, discount on hotel rent and equipment cost and in some cases, even pay for advertisement expenses to Bollywood moviemakers, who opt to shoot in their respective countries. For, they see Bollywood as the best vehicle to attract the increasingly affluent Indian tourist. On the contrary, shooting international movies in India is extremely difficult not just because of the lack of a single clearance window but also of trust. Speaking about such a peculiar situation, Singh of Yash Raj Films said, “In the past, a lot of Hollywood production houses have come here to shoot, but 90% of them have taken back very bad experiences with them.“ Singh draws a parallel of this to how foreign tourists are often fleeced in India. Moreover, importing of equipment should also be made simple as they like to travel with their own equipment, which several of our archaic laws make difficult, he added (read exclusive interview below). Rangachari, though, is hopeful. He expects the new government to put in place a single clearance window to ease the shooting of foreign movies in India. A FICCI-KPMG study, on the Indian Media and Entertainment Industry, estimated the size of the domestic film industry for 2013 at Rs.12,500 crore (over $2 billion) – a growth of 11.5% over 2012. To figure out the share of Bollywood in this, The Dollar Business spoke to one of India’s top Bollywood Trade Analyst Komal Nahta. Nahta claims Bollywood accounts for roughly 20% of India’s movie market. “The Hindi film industry did a business of roughly Rs.3,500 crore in the calendar year 2013, of which about Rs.1,000 crore came from overseas,” he said. In other words, almost 30% of Bollywood’s revenue comes from abroad! And once this figure was revealed, all those mega bucks spent on technicians, cameras and lenses, suddenly started making sense.

Bollwood1-The-Dollar-Business Since the typical Bollywood movies, with superstars, song and dance and lots of melodrama, have been doing well even in overseas markets, thanks to large expat Indian communities, the industry hasn’t really had the motivation to attract a larger audience that wants more realistic movies

  Not for all tastes

Bollywood movies are widely watched in markets like US, UK, Middle East, Germany and even Russia, essentially in countries with large Indian and South Asian diaspora. What’s disappointing, though, is that Bollywood has badly failed to make a mark with the non-diaspora audience. Similarly, though love stories do well internationally, movies starring Shah Rukh Khan and Aamir Khan do well irrespective of their genre. For example, last year, while Aamir Khan’s Dhoom 3 grossed nearly $31 million (about Rs.180 crore) overseas, SRK’s Chennai Express collected over $19 million (close to Rs.120 crore) abroad. Other films, which in the past have done good business in overseas markets, are 3 idiots, My Name Is Khan, Kick and Jab Tak Hai Jaan. This, despite the lack of popularity among non-diaspora audience. Explaining the reason why Bollywood has failed to break into the hearts and minds of the non-diaspora audience, Nahta said, “The taste of the non-diaspora audience is very different. It is very difficult for them to understand our movies which are full of songs, dance sequences and drama.” What about stories of how locals in United States and United Kingdom are lapping up Bollywood movies then? “The industry claims are false. Bollywood is yet to break into the non-diaspora arena. Apart from The Lunchbox, I doubt any other Bollywood film did well in the non-diaspora market,” Nahta said, in his usual blunt manner.  

 

“Despite being a net forex earner, Bollywood doesn’t receive incentives from the government”

 

Step motherly

The Hindi film industry, despite being India’s greatest brand ambassador and a net forex earner, does not get any export incentives. One possible reason, for such discrimination, could be the multiple hands through which a movie passes before being able to earn in foreign currencies. For, while a few like Yash Raj Films produce and distribute their own films, in most other cases, the producer(s) and the distributors are different entities. There’s also the case of the cost of imported equipment being amortised over several films and production houses. On this topic, Singh of Yash Raj Films, has an interesting question. “There could be a debate on what basis you can get incentives. Should incentives be given just for releasing the film abroad?” he asked. But then we have many complicated schemes when it comes to merchandise exports. So, settling Bollywood’s issues can’t be impossible. Can it be?

Happy ending

Bollywood, as an industry, despite its appeal to only select audiences, is a net forex earner. Almost everyone The Dollar Business spoke to, claimed the industry earns much more in forex than what it spends. One such voices, Pranab Kapdia, Vice President (Distribution), Eros International, said, “Overall, we are forex earners. When we shoot abroad, we spend and when we release films internationally, we earn. It has a ripple effect on many interlinked industries like exhibition, dining and merchandising etc.” In fact, that Hugh Jackman was invited to share the stage with PM Modi, during one of his recent addresses in New York, shows the power of showbiz. Agreed Bollywood movies have their lacunae. Agreed it needs to make more realistic movies and not the usual song and dance routines. Agreed it needs to appeal to a wider audience. But there’s no doubt it’s India’s biggest brand ambassador, perhaps much bigger than even cricket which has a following only in a handful of cricket-playing nations. And there’s absolutely no doubt that it’s a net forex earner. Shouldn’t then it, at least, get what’s legitimately its? Who knows how much more successful the industry will be if its forex-earning capability is recognised and its overseas success incentivised?  

“Foreign governments are giving us subsidies to shoot movies in their countries” - Vivek Rangachari, Commissioning Producer, DAR Motion Pictures Vivek-Rangachari-The Dollar Business Vivek Rangachari, Commissioning Producer, DAR Motion Pictures   
TDB: Why is Bollywood, increasingly, opting for Hollywood technicians?

VR: There are a few Bollywood films that are heavy on special effects, VFX etc. and require technicians from outside. Although we have great technicians here in India, there are certain genres that we feel have not yet been explored here. Hollywood has been doing these things for years and they are far more experienced in such Stuff. Lot of these foreign guys also want to explore Bollywood. These foreign technicians like to be associated with good cinema and are looking for opportunities to grow.

TDB: Does Bollywood pay these international technicians at par with Hollywood?

VR: No. They have taken a hit in India. Obviously, we cannot pay what Hollywood or any other country can pay. But as I said, they like this genre and therefore, want to see if they can make a mark in India.

TDB: What is the real perception of Bollywood movies in international markets?

VR: The international market is not very open to Indian films, although a few of our films do get appreciated. We need to change the look and feel and music of our films to appeal to a slightly wider audience and not just the Indian and NRI audience. We cannot cater to the Hollywood audience with an Indian approach as our culture is very alien to them. They will like an approach which they can grasp and understand. For our movie – The Lunchbox – we had an American editor and German music composer. All these foreign technicians made it look like a global film.

TDB: What kind of benefits do you get when you shoot at a foreign location?

VR: I think ‘Zindagi Na Milegi Dobara’ is a great example of how the Spanish government helped make the film. The makers got subsidies, but the film also helped promote Spain as a tourist destination amongst Indians. We can earn subsidies by shooting abroad, which can be in the form cash back, advertisement/promotional funds, discounts for hotel stay, technicians expense etc.

TDB: Even though India has beautiful locations, why are foreign locations considered more lucrative?

VR: I think the situation is improving, but a lot more needs to be done. Firstly, we do not get any subsidy from the government. Secondly, getting location clearance is a very tough task. I hope the situation improves and we start getting a single window clearance, which will make shooting even foreign films in our country hassle free.

TDB: Apart from single window clearance, what are your expectations for the Indian government?

VR: At the state level, entertainment tax is very high in Maharashtra. I think if GST comes, the tax structure will get simplified. But the entertainment tax needs to go down. The rationalisation of the tax structure is a must, be it VAT, service tax or entertainment tax.

TDB: We all are aware of the South Asian diaspora and their love for Bollywood. But are there other communities/countries that love Indian films?

VR: In the Middle East, lot of locals watch and enjoy Hindi films because our culture is closer to them. In Russia, only Raj Kapoor could break in. Moreover, in certain parts of Russia, Mithun Chakraborty’s ‘Disco Dance’ is also extremely popular. But we haven’t cracked more markets because language and culture have been big barriers. Even though language can be taken care of, culture is a major barrier. Our melodramatic films might not gel with them. Having said this, there are lots of foreigners, who have taken a fancy to Hindi films. Shahrukh Khan is extremely popular and Germans adore him. His movie ‘Kabhi Khushi Kabhie Ghum’ had done really well in Germany. Also, if a foreigner is watching Bollywood films from a young age, he/she might appreciate our movies. But if a middle-aged person watches our movies for the first time, he/she would just say what nonsense is this!

 

“Big star cast films, irrespective of genre, do well abroad” - Pranab Kapadia, President (Distribution), Eros International Pranab-Kapadia-The Dollar business Pranab Kapadia, President (Distribution), Eros International
  
TDB: How do you promote Hindi films in UK? 

PK: We promote via TV, radio, print and digital media, targeting the Asian community. Channels like Zee, Sony, Star Plus and Colors are viewed almost all over the world and so we advertise on them to create awareness.

TDB: Are your margins high while selling Indian films to the local audience? Is the pricing similar to Hollywood films?

PK: By margins, if you mean higher revenue due to higher ticket prices due, then the answer is no. We don’t have high margins because all our expenses are also in US dollar terms. As far as the second part of the question is concerned, our stake and size of business is very small as compared to Hollywood. But small does not mean we are not known. Bollywood has a great following and we are very popular all around the world, particularly with the South Asian audience migrating to all parts of the world.

TDB: Can you give us a breakup of Indian movie viewers in UK, in terms of expat Indians and non-Indians, who view dubbed and sub-titled Indian movies?

PK: Viewers of Bollywood films outside India are not only Indians, but also Pakistanis and other South Asians like Bangladeshis & Sri Lankans. Middle Eastern audiences, Afghanis and Egyptians also are occasional viewers of our films. Usually, our films are released in Hindi, with English subtitles. We also dub a few select films, which have done exceptional business in India and whose content cuts across the Asian diaspora like 3 Idiots, English Vinglish, My Name is Khan etc., in languages such as German, Korean, Japanese etc.

TDB: Which genre of Hindi films do well with local audiences in UK?

PK: Romantic love stories do well. Action also does well, but not the gory varieties. Big star cast films,  irrespective  of  genre, always do well.

TDB: What’s your view on Bollywood movies as an international trade product?

PK: Art, movies and entertainment have always played a vital role is bringing societies together, bringing people from various walks of life, from different back grounds closer. Bollywood has been extremely influential in this, with its music and rich storytelling bringing huge recognition to our talent.

 

“Non-Indians are yet to open up to Bollywood” - Avtar Panesar, Vice President (International Operations), Yash Raj Films Avtar-Panesar-The Dollar Business Avtar Panesar, Vice President (International Operations), Yash Raj Films   
TDB: How has the international market for Bollywood films evolved over the years? 

AP: The international market is a very star-driven market. Movies, with a new star cast, have never worked and still don’t. It is very difficult for a completely new star cast to break into the international market. However, when they break through in India, they automatically get picked up by the international viewers. On the other hand, star-driven movies do well. There is another big change now. Earlier, the concept was ‘one size fits all’, i.e., you could release one film all over the world. But now, different kinds of films, work in different territories. What works in US, does not necessarily work in UK and UAE, which are our three major markets. This is something that has evolved over the past five to seven years.

TDB: Do you have any strategy to reach out to non-Indian audiences?

AP: By and large, our core business is from the Indian diaspora. They still represent a lion’s share of our overseas business. But we also try to reach out to non-Indians. We first try and find out the kind of cinema they watch. Do they watch it online or offline? We also go and find people, who are passionate about new-age or new kind of cinema and then try and work with them. Countries like Korea and Japan and even China are the markets we have been trying to tap.

TDB: Why don’t you ask the international media to review Hindi films? Won’t that help in the promotion of films overseas?

AP: Frankly, their review does not matter to us. For reviewing, a film needs to be screened three months in advance to the media. Firstly, our business does not work like that and secondly, our fans don’t watch our films based on some review. They come to watch because they want to watch our films. So, the review doesn’t really matter much. Yes, there are few films such as Titli which needs a review. But if I show Happy New Year to a critic a month or two before the release, it won’t matter. Such films have a certain fan following.

TDB: Can you give us a break up of Bollywood’s international viewers?

AP: All our films released outside India are subtitled in English. If you ask me how many non-Indians come to watch, then the figure is marginal. Perhaps in the diaspora-driven market, it would be about 1%.

TDB: How do you deal with piracy? Isn’t it a big issue hampering Bollywood’s growth?

AP: We have pushed this issue with the Modi government. Today, it is Internet. VHS and DVDs were issues earlier. Unfortunately, it’s a losing battle for us, right now. We continue to fight it, but it is not in our hands. Laws are in place, but the implementations of those laws are very tricky. It’s a worldwide phenomena. I am personally fighting this issue for the last 17 years and I am yet to see satisfactory results. Authorities continue to treat piracy as soft crime and we, as an industry, continue to suffer.

TDB: Overall, is Bollywood a forex spender or a forex earner?

AP: It’s largely a forex earner and on an average, international business accounts for around 30% of a film’s total revenue.
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