Industry Analysis Case Study

Case Title:

Corporatisation of the Indian Film Industry

Abstract:
The case attempts to explore the efforts of the industry and the government to corporatise the Indian film industry. The Indian film industry in 2005 was the largest producer of films in the world, but its global share of revenues accounted to just 1%. It was granted ‘industry’ status in 2000 and since then corporatisation had begun in the form of banks lending against film projects, film insurance, and emergence of multiplexes. The industry was no doubt set for growth, but was facing hurdles in the form of high entertainment tax, financing, piracy, poor distribution and lack of training schools. The government had initiated efforts to curb piracy, encourage co-production treaties with other countries and reduce entertainment tax. In spite of all this, industry insiders shrugged off corporatisation as a fad and suggested that the industry will continue to work the way it used to be.

Pedagogical Objectives:

• To understand the structure and the business model of the Indian film industry
• To study the changes after corporatisation in the business model
• To analyse whether corporatisation can increase the revenues of the industry.

Keywords : Film Industry; Industry Analysis Case Study; Indian Film; Bollywood; Industry status; film insurance; film finance; corporatisation; Entertainment tax; Piracy; Film Exhibition; Film distribution; multiplexes