Industry Analysis Case Study

Corporatisation of Indian Film Financing in India: Best Practices from Hollywood

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Abstract:

The case study details the financing structure of the Indian Film Industry (IFI) before and after being accorded the ‘Industry’ status. It discusses the old as well as the new avenues of financing that are available to Indian film producers. The case focuses on the value chain of the IFI and its potential areas of improvement. It mentions about the corporatisation and the need for professionalism to regularise finances from legitimate sources. It also discusses about the flow of Foreign Direct Investments into the industry resulting from globalisation of the Indian economy. A comparison with Hollywood reveals the areas of improvement for the industry. The case study deals with the following issues:

How can the value chain of IFI be improved? Should IFI corporatise and try to adopt the best practices from Hollywood? Before adopting any best practice, should there be any working relationship between the different entities of the value chain?

Pedagogical Objectives:

• To analyse IFI’s value chain and identify the potential areas of improvement
• To compare and contrast IFI with Hollywood and also to discuss and debate on the possible best practices that IFI can/should adopt
• To discuss different methods of film financing giving particular attention to India’s film financing sources and debate on the best financing method to suit the Indian film market
• To determine what needs to be done by IFI to give it a more structured and professional approach, so that financing can be regularised.

Keywords : Film Financing, Indian Film Industry, Value Chain Analysis, Best Practices in Film Industry, Hollywood Studio System, Globalization, Professionalism in Film Making, Bollywood Film Industry, Hindi Film Industry, Indian Cinema, Production Practices in Indian Cinema, Piracy in Indian Films, Financing Practices in Bollywood, Intellectual Property Rights