Watch more Hollywood movies here

New Indian companies are leaping into the Hollywood film distribution business, ensuring greater choice at theatres for Western movie buffs.

Quick, what is common to "Passion of Christ," "Kill Bill 2" and "Alexander?" Apart from being the big budget Hollywood movies of 2004, the three are among the 10 or so films distributed by Adlabs Ltd, PVR Pictures and E-City Pictures, respectively.

Hollywood films are usually distributed in India by the likes of Sony Pictures (which distributes movies produced by Columbia Tristar, Disney and Buena Vista), Paramount Films India (which distributes movies from studios like Paramount, Dreamworks and Universal ) and Warner Bros (which has an office in India to distribute its own movies and Fox movies as well). On an average the three release between 65 and 72 movies a year.

But a major shift is happening in the Hollywood movie distribution business "� new Indian companies are leaping into the game, ensuring that India's Hollywood film buffs have even more choices at theatres.

Earlier this year, for example, UTV signed a 10-year deal with the US-based Miramax Studios to distribute its 135 movies, 10 of which are yet to be released. E-City has the distribution rights for 10 English films; PVR has distributed 12 films over the last two years. Shringar Films too has started distributing English language films.

Yet Hollywood films account for just three per cent of Bollywood's estimated Rs 1,000-odd crore turnover. Only 70 English movies are released in theatres every year.

Also, the distribution business in India is considered a disorganised one. And the profit margins seem slim. Despite distribution companies like Sony Pictures posting Rs 100 crore revenue last year (Warner Bros did not respond to requests to be interviewed and Paramount Pictures declined to divulge any figures), 20th Century Fox had to wind up its Indian operations in February this year. Why, then, are Indian distributors getting into the business?

For three reasons. First, in the number of multiplexes in the country has grown by leaps and bounds. Over 100 multiplex screens are to be found in India and 20 more are expected this year.

Says Vikramjit Roy, acquisition manager at Sony Pictures: "The boost in the retail infrastructure has been instrumental in bringing back audiences to theatres."

More to the point, some of the new distributors are multiplex owners (PVR's Group of Cinemas, Shringar Films and E-City) who've forayed into distribution.

Notes Kamal Gianchandani, marketing head at PVR Pictures: "Content is the driver for the exhibition and distribution business and so it makes business sense for us to venture into the distribution area as well."

Agrees E-City Pictures CEO Atul Goel: "Distribution of movies does help exhibitors rotate their content and be assured of a varied mix."

Secondly, Hollywood studios have localised their content to a large extent.

Points out Jacinto Fernandes, marketing manager at Paramount Films India: "Dubbed versions of the same movie have ensured that the film reaches a wider audience." Films like "Jurassic Park" and "Spiderman 2" have been box office successes because they had dubbed versions.

Last but not least, an increasing number of independent film studios that don't fall under the big five (Warner Bros, Paramount Pictures, Columbia Tristar, Universal and Dreamworks) have sprung up worldwide.

The big five and News Corp (Fox) control 70 per cent of the world's film production and distribution market. But the independent studios, and not the big five, have been distributing movies like Mel Gibson's "Passion of Christ," Quentin Tarantino's "Kill Bill 1&2," all of which have been top grossers.

In India, the new distributors are picking up English movie rights both from traditional haunts like Hong Kong and Indonesia (movies like "Rush Hour" and some of the earlier Jackie Chan films found their way to India in this manner) and from film festivals. Ever year, more than 25 film festivals are held around the world.

Says Sunir Kheterpal, country head, entertainment and media banking, at Yes Bank: "Film festivals showcasing a mix of world cinema have now become the venue for many Indian distributors who buy film rights."

E-City Pictures picked up the distribution rights for its first English movie, "Alexander," at a film festival, according to E-City's Goel.

To be sure, the new Indian distributors regard the English film distribution business as a low margin, average profitability venture.

Says Shringar Cinemas chairman Shyam Shroff: "We distributed a couple of English films which did reasonably good business. So we acquired the distribution rights for more films."

Adds Kheterpal: "Distributing foreign films in India is viable because of the availability of rights to exploit them in different media."

For example, UTV has bagged the exclusive rights for all Miramax movies for the next 10 years for theatrical releases, for home video, DVD and television rights as well.

Says Ronnie Screwvala, chief executive officer, UTV Software Communications: "We have already sold some of the telecast rights to TV channels like Star Movies and HBO and signed on an Indian company for a DVD as well." That's why UTV signed a deal with France's Europa which will release action star Jet Lee's movie this year.

Nonetheless, the new distributors' rivals are quick to point out that small and mid size Indian distribution companies don't have enough muscle for the business.

Executives at Sony Pictures and Paramount Pictures argue that marketing English film involves extra marketing effort. Most Indians still prefer watching Bollywood and regional films.

Only in the cities does the public see Hollywood movies. Says Roy of Sony Pictures: "Considering the short shelf life of films, the fate of any film is often decided on the first weekend itself. This makes it harder for any distribution company to market the film and ensure its success."

The big studio distribution companies argue that by virtue of being backed by US studios, it is easier for them to make audiences familiar with their movies, which isn't the case with the Indian companies.

Retorts Goel of E-City: "A good English movie already creates a buzz for itself internationally. So it is immaterial who distributes the movie. All we have to ensure is that we are able to encash on that buzz."

The western movie distribution companies also ask how many Indian companies will actually spend big sums of money promoting a movie. Case studies in India have shown that "Spiderman 1" was a success not only because of the film's plot but also because of Sony Pictures' promotional efforts.

From merchandising to dubbing, to live events and ring tones "� the company left no stone unturned to push ticket sales. Company officials say that Rs 4-5 crore was spent on promoting "Spiderman 2."

Can Indian companies match this kind of spending? But the Indian distributors reply that, quite simply, they don't have to "� they already own distribution outlets (multiplexes) and so don't have to pay theatre owners. PVR and E-City say since they do not have bear any exhibition costs, they have the money to spend on pre-release movie promotions.

What seems clear is that the movie distribution business will see further changes "� more consolidation is likely. Consistency is the key here "� a Sony or a Paramount will have assured releases every year. The newer distributors will have to work harder to have a constant supply of movies. That's the challenge they face "� lights, cameras and plenty of action all the time.