The Indian Media & Entertainment (M&E) industry, which includes media, advertising, films, gaming, animation, TV, Internet, events, etc., has registered a growth of 11 per cent over 2009 and touched Rs 652 billion in 2010. But all is not well with the film industry. Karan Johar, co-chairman, Ficci Entertainment Committee, spoke to Priyanka Joshi on how the film industry is gearing up for 2011. Edited excerpts:
According to the Ficci KPMG Report, 2010 has been described as a challenging year for the film industry. Do you think the 100-day cricket window will further affect the industry revenues?
Our country has two passions, cricket and cinema. People will not completely stop watching movies because of cricket. However, the World Cup and the IPL season have affected the release schedule and it has taken three to four months from our release time. The film producers are aware of this and have worked out a staggered release schedule over the year.
How indispensable TV has become for the film industry in terms of pre-selling satellite rights and pre-release film marketing to recover revenues?
TV definitely assures a certain portion of revenue for the film producer and is an indispensable medium. However, film content dominants the television medium. Broadcasters are on a look-out for exclusive film content, compared to the syndication model favored a few years back. DTH has also opened new avenues for films. Today, Bollywood films have opportunity to release films in over 200 towns via DTH. This stream is growing stronger every day.
Has the Budget addressed the issues of the M&E industry, and film industry in particular?
The film sector hasn’t got the kind of attention from the Budget that we at Ficci were expecting. But we are optimistic the government will pave way to facilitate growth in this sector. This sector will drive the economy in this decade. We are definitely witnessing cost corrections in the film industry; from the stars, directors, producers and distributors, who have realised they need to align and work together for steady growth of the sector. We cannot predict hits and misses, but piracy is one big bottleneck for the sector’s growth. It is almost eating one-third of our revenues. The industry has to work together to aggressively battle against piracy.
How do you see the film industry deploying new technologies like 3G and telecom penetration?
The motion picture industry is experiencing another deconstruction with streaming and new forms of platforms emerging. But for the immediate future, linear television will continue to dominate until the new media grows into a mass media. We have new opportunities in the form of Netflix, Apple iTunes and various other platforms. The app space is what one should look for films this year.
There are a lot of foreign companies and studios participating in Ficci Frames this year. Is that the sign of things to come this year?
We have around 100 foreign delegates at Ficci Frames this year. India is top in the radar of global film production companies. Everyone wants to work with an Indian partner for their international ventures. Ficci Frames has been driving this agenda for a decade and we are seeing a matured industry in 2011. There is a huge interest among foreign delegates for B2B meetings. This year, we are attempting to create a B2B market place, which, over a couple of years, will evolve into a good market.
What is your take on FDI in the media sector?
Compared to other developed markets, India is pro-active on FDI in the media sector. Changes are expected in FDI caps in the cable TV sector to 74 per cent from the existing 49 per cent. This will pave way for digitalisation. We are a very investor-friendly country on FDI in the media sector. We have the top global media brands already in India.