Industry Report: Focus: Asia & Oceania
Indian film trade to benefit from partnering Hollywood: E&Y
by Nandini Raghavendra
- India’s film industry will benefit from an increased collaboration with Hollywood in the areas of film entertainment, education, VFX and tourism, according to Ernst & Young in a report issued for an initiative launched by the LA Film Council. The report, ‘Film Industry in India: New horizons’, has also said that with Hollywood already contributing Rs850 crore to Rs900 crore, or 10-12 per cent of the overall box-office revenue in India, the Indian film industry will witness an accelerated growth than competition from countries like China, Japan, Russia and Brazil.
There has been 42 per cent increase in the number of Hollywood movies shot in India between 2010 and 2011, and that number is expected to grow, the report said. At least five big-ticket Hollywood productions, including the next James Bond, will be shot in India, while Fox is looking at two more films. The Indian film industry is projected to grow from $3.2 billion in 2010 to $5 billion by 2014 at a CAGR of 14.1 per cent. With close to a 1,000 films produced a year, India’s filmed entertainment industry is the largest in the world coupled with its theatrical admissions at around $3 billion.
A greater collaboration between India and US will result in increased film tourism, cultural and technological exchanges and boosting local talent, and most importantly serve as a showcase on the global stage for India art, culture, history and talent. Perhaps, this is a beginning of a revolution similar to the one we witnessed in the IT industry at the beginning of this millennia,” Rakesh Jariwala, partner and segment champion, filmed entertainment at E&Y, said. According to estimates, there are more than 40 major domestic VFX companies catering to domestic and international clients. Currently, India accounts for only around 10 per cent of the total animation and VFX outsourcing pie. However, there is room for growth and the amount of work coming to India from Hollywood is on the rise. Of late, the VFX industry has been shifting toward higher-end assignments. India has well developed post-production facilities available at low cost.
A foreign producer who comes to shoot in India can complete his entire movie here, from shooting to post production to cut costs. Industry players are also tying up with film and entertainment companies on dedicated projects. As far as India’s travel and tourism industry goes, it contributed $1.7 trillion (or 2.8 per cent of the global GDP), which is expected to rise to 4.2 per cent ($2.9 trillion) by 2021. Furthermore, investments in the global travel and tourism industry are expected to grow at a CAGR of 5.4 per cent to reach $1.5trillion by 2021 from $0.6 trillion in 2010. Many US states such as California, New York, Michigan, Nevada and Utah offer incentives to film and television production companies from India. Canada also offers incentives to producers of film, television, animation and visual effects from India and has attracted many Bollywood producers, who have shot movies in the country.