PVR Pictures, the film production and distribution arm of the PVR Group, has decided to stop producing films and focus only on distributing Hollywood films. While piracy challenges abound, Kamal Gianchandani, president of PVR Pictures, feels the industry has learnt to live with these. In an interview with Gaurav Laghate, he talks about the company’s plans. Edited excerpts:
Why is PVR Pictures focusing only on film distribution?
We started in 2001 as a distributor of Hollywood films. In 2007, we entered the production space. While the two films we produced with Aamir Khan performed very well, other films did not work. So, now, we have decided we wouldn’t produce films. We would focus all our energies on the distribution of Hollywood films. Big studios release selective films; we felt a need to get independent films.
What are your plans for the distribution business? How much investment are you looking at?
We released Cloud Atlas last week. Forthcoming films include The Twilight Saga: Breaking Dawn Part 2, The Collection, The Reluctant Fundamentalist, Midnight’s Children, Cinderella (3D), Promised Land, etc.
What kind of revenue and profit margins do you expect from this business?
For the last financial year (2011-12), PVR Pictures’ revenue from distributing Hollywood movies was Rs 30 crore. We expect a 25 per cent jump in the top line this financial year.
But don’t you think the film production business would have given you an edge?
It is about prioritising your time and effort. No doubt the year has been good for films, for producers and exhibitors. But we have to see if we have management bandwidth. Movie production is a high-risk and very demanding business. We are looking at hockey-stick growth, which needs focus. We cannot afford to be distracted by production.
So, is there any specific strategy behind selecting movies, as content is abundant now?
From our line-up, you would realise our strategy to acquire international movies includes bringing films with big budgets and stars, as well as films targeted at a niche audience.
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While we released 27 films last year, from this year, the focus is to get films that are big and have the potential to be dubbed in different languages. For example, while Cloud Atlas was released in only 130-odd screens, we would be releasing Breaking Dawn in about 500 screens.
So, the aim is to find a balance between films that have mass appeal and can be dubbed in Hindi and South Indian languages and films for discerning audiences.
Major studios release films that are commercial successes on their own, while you would have to go with independent films.
Today, independent studios like Summit are almost mini majors. Some of these have bigger production budgets than a major studio. And, you have to understand mostly, these mini majors produce films that have strong storylines. Many Oscar-winning films are from Hollywood studios that aren’t big.
And, as I said earlier, we have experience of about 10 years in distributing films. We understand the market.
Many films are seeing same-day releases in India. What is the reason for this?
The main reason is piracy. We see within a week, pirated copies of films come to the market. So, we like to go for day-and-date releases, sometimes even ahead of the US. We released The Three Musketeers and Killing Me Softly much before their releases in the US.
Also, today, the consumer is aware and demanding. For him, a film released in the US three weeks earlier is dated.
So, is piracy a big issue?
Yes, it is a big issue, but the exhibition business has learned to live with it. It is clearly there and we need to learn to exist against the backdrop of piracy.
But there are opportunities as well. With a large English-speaking population in India, there is a robust model for Hollywood films.
What are the other challenges?
First, apart from the top six to seven cities, the Indian market is skewed towards a certain genre. When we need to penetrate smaller towns, the skew becomes a challenge. Also, promotions and advertising have become very expensive.