Fox Star Studios, the 50:50 joint venture between Twentieth Century Fox and Star (both owned by Rupert Murdoch) announced its foray into the Indian market with a two-film deal with producer Vipul Amrutlal Shah of the Namaste London and Singh is Kingg fame. Vipul Shah will make a visual effects-driven fantasy action film and a contemporary romantic comedy for Fox Star.
Speaking to Business Standard from London, Jim Gianopulos, chairman and CEO of Fox Filmed Entertainment, said that Fox Star is launching operations in India with Vipul Shah’s creative talent. “India is a very important market for the company. Bollywood is known around the world,” he said.
Besides, India also made sense because of the broad reach and wide presence of its sister concern Star India, the chairman said.
However, Fox Star is announcing its plans much after international studios like Sony Pictures and Disney have made their presence felt in the country.
“It is our desire to make films in India, it is not an imperative. We do not rush into different markets to make films,” said the Gianopolus, who is said to be responsible for the success of Twentieth Century Fox. Fox will bring its financial strength, marketing and distribution abilities to the joint venture and exploit the local creative talent. Gianopolus, however, did not divulge the kind of investment planned for Fox’s India foray.
“There is no minimum or maximum cap on finance,” he said.
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Even Vipul Shah refused to give away the budget of the two films. “We are still developing them,” he said. “The relationship with Fox is not about money. It is about learning to exploit films in a more scientific way,” he added.
It’s easy to understand Fox’s interest in India. The Indian film industry is expected to double over the next five years — from $2.4 billion in 2007 to $4.4 billion in 2012. “So there is tremendous opportunity to grow”, said Vijay Singh, CEO, Fox Star India. Singh said that the company will distribute its own films in India and abroad. Currently, Indian films make only 8 per cent of their revenues from overseas sales. For Hollywood the figure is 40 per cent.
The company plans to distribute Twentieth Century Fox films in India. Later, Fox Star will make films for Indonesia, China and Korea.