Indian movie realisations may touch $3.7bn by 2020: Industry Report

The Dollar Business Bureau

India’s movie industry’s gross box office realisations may touch $3.7bn by 2020, predicted Deloitte Indywood Indian Film Industry Report which was released at the Ramoji Film City, Hyderabad today. The report detailed that revenue wise the Indian film industry is growing leaps and bounds. In Dec 2015 the industry grossed $2.1 billion and is expected to grow at 11% CAGR predicted to touch a whopping $3.7 bn by 2020.

The Indian film industry is the largest in the world in terms of number of films produced with around 1,500 to 2,000 films produced every year in more than 20 languages. Yet the industry’s gross realisations has been substantially low than its counterparts in other countries. “The box office realisation in the US and Canada stand at USD 11 billion whereas these countries produce significantly lower number of films (approximately 700 films),” the report said.

Of the total revenue, 74% comes from the domestic box-office while the remaining is scattered between cable and satellite rights, which are termed to be the fastest growing segments with a CAGR of 15% over FY2015-2020. The Hindi film industry or Bollywood alone contributes 43% of the revenue while regional films take up the remaining 57%.

Though the influence of international films is low, it is still seeing a progressive growth with a small but determined segment of English movies and other foreign languages witnessing an increased audience within the country.

Though there has been marked change and increasing anti-piracy measures put in place by the Govt, the movie industry in India remains largely inchoate due to insufficient laws. To be on par with the revenues of the international film industry, the industry has to focus on countering piracy, increase the no., of multiplexes, update the current technology, focus more on film tourism, shorten the window period of releasing movies through better planning to ensure profitability and better growth numbers.