Films cash in on new media

The media and entertainment (M&E) industry estimates that while 63 per cent of the revenues for a film are generated from the box office and around 13 per cent from home video sales, other sources contribute anywhere between 2 and 25 per cent of a movie's earnings today.

Industry experts at FICCI-FRAMES 2008 said that Bollywood has been quick to cash on the various emerging opportunities to make money. "Film-makers have shifted their focus from just box office collections. They now view new media and merchandising as not just promotional tools but also as potential revenue streams," said Saurav Varma, chief marketing officer (Filmed Entertainment), Reliance Entertainment.

Darshana Bhalla, CEO, MATES, concurred: "The emerging revenue streams include in-film advertising, brand associations, digital platforms like mobile and internet, online gaming, in-flight entertainment, podcasts, and out-of-home entertainment." MATES conceptualised Shah Rukh Khan starrer Om Shanti Om's brand associations. Bhalla said that a revenue Rs 5 crore was generated from in-film advertising while brand associations with Maybelline, Nokia, Shoppers Stop and Sia created media hype worth Rs 18 crore for Om Shanti Om. Through merchandising, the film earned Rs 8 crore, and music earned approximately Rs 3 crore.

"Why can't we monetise the popularity of movie characters like Baburao of Hera Pheri or Circuit and Munna of Munnabhai as a revenue source by having T-shirts and other similar merchandise," asked Bhalla.

The animation industry "" which remained the single largest-discussed topic at FICCI Frames 2008 "" can take lessons from the film industry, suggested experts. While animation companies exulted over the fact that Indian animators are working on creating their own intellectual property (IP), they also stressed that Indian animation firms need to get into details of licensing frameworks, financing and other details.

Munjal Shroff, COO, Graphiti Multimedia, pointed out that licensing is an important aspect for IP created from India. "But before that, the creator has to find what is unique about it so that the animation appeals to the masses: Who the target audience is and what business models can be built with merchandises like toys, games, etc."

According to a study, 80 per cent of what a parent spends is governed by their child's needs. However, there needs to be a product that is compelling enough for the parents to buy. "You cannot fool a mother. If you price something at Rs 600, you have to give her a compelling reason for her to buy your product if a similar product is available for Rs 250," explained Himanshu Chakravarty, CEO Westside-Trent USA. He also said that when animators look at getting revenues from merchandise like apparels, games and toys, they should have a clear strategy on what the product display should be. "We have seen many branded products not taking off as they did not have a clear focus on the end-product placement."

Meanwhile, in an effort to make the best of the resources available in India, director, Ministry of Information and Broadcasting, Sangeet Singh said the government was looking to have a few co-production agreements with countries like South Africa, New Zealand, Brazil, Singapore, "to facilitate filmmakers to get the best from the Indian entertainment industry." While private co-productions in films has been around, Raana Sheikh, an independent film maker from Pakistan said, "Government representatives need to have a co-production agreement between the neighbouring countries to allow free movement of creativity."