It may cost a lot but in-cinema digital advertising holds the promise of  mouth-watering revenues for exhibitors

There’s no escaping it and advertisers are already having a field day with it. Now, cinema halls are discovering a new way to milk the ‘D’ word. So after digital screens, is digital advertising the next big thing for exhibitors?

Though expensive, multiplexes in India successfully made the switch to digital screens, taking viewing pleasure to a different level. Encouraged by this, many are now warming up to the prospect of in-cinema digital advertising.

Though it may not be a low-priced technology by any stretch of imagination but with the promise of bigger revenues, it’s also very tempting.

According to a survey by Zenith Optimedia, a media buying agency, globally, the cinema advertising market is pegged at $2,664 million for 2009, with the figure climbing to $2,910 million by 2010. Contrast this with digital advertising in cinemas in India, which is currently estimated at Rs 500 crore.

Digital advertising entails the delivery of ads via satellite to cinema halls across India. The biggest advantage is that an ad campaign can be launched nationally or in select regions in the shortest time. Digital advertising taps markets not just across metros but also B and C cities.

Explains Utpal Acharya, Vice-President, Programming and Distribution, Inox Leisure, “Consumers can flip through ads in almost all mediums of advertising, whether TV, radio, print or outdoor. Cinema advertising is both cost-effective as well as focused as the advertiser has access to the undivided attention of a captive audience. Advertising through digital cinemas ensures assured playability as well.”

Digital advertisements are also superior in visual and sound quality vis-à-vis the analog system. In the latter, prints develop scratches and scars over time. Also, since there is only one hub to upload these advertisements to one site, it takes less time to telecast these advertisements.
Advertisers can also track whether their ads were screened in a multiplex or not and also record the exact time of screening. Transparency in cinema advertising is hugely beneficial for advertisers, who are increasingly attracted to this medium.

Digital advertising could bring in more revenue for multiplexes too. Advertising revenue currently accounts for 10 to 12 per cent of an exhibitor’s total earnings (65-75 per cent from box office collections and 30-35 per cent from food and beverages). Industry experts claim that with technologies like digital advertising, ad sales can boost revenue from this source to as much as 30 per cent.

It’s no surprise then that advertisers with companies like Scrabble, Sathyam Cinemas, Pyramid Saimira, E-city and Cinemeta have hopped onto the digital bandwagon.

Deepak Ranjan, Head of Advertising Sales, UFO Moviez says, “Digital advertising provides advertisers with a lot of benefits as it is very lucrative. Some major issues like costs and logistical problems are eliminated. The market for digital advertising is growing and will experience tremendous growth once the number of digital screens increases.”

He adds that companies like HUL, P&G, Idea Cellular and BSNL are among the loyal customers who opt for digital advertising. “With a reach of 1,400-plus cinema halls running 30,000 shows per week, digital advertising reaches around 4 crore individuals per month, providing advertisers great value for money,” says Ranjan.

Many multiplex owners also believe that while advertisers are hankering after media platforms like television, where the price of a ten-second ad spot is around Rs 1 lakh, digital advertising in cinemas is a far more viable option.

Alternatively, in cinemas, advertisers need to pay between Rs 20,000 and Rs 25,000 for a three-day ad package to advertise in metro cities like Mumbai, and around Rs 10,000 in cities like Lucknow.

However, ad rates vary with show timings, a film’s popularity and the condition of the cinema property. An ad slot for a popular film during the evening show may cost 20 per cent more than during the morning show.

Here’s another plus. It costs a mere Rs 50,000 to Rs 60,000 to convert an advertisement to a digital format. Duplication costs are also minimal as ads, once delivered, are stored on servers in the cinema halls.

Yet, digital advertising is at a nascent stage in India, say industry experts and multiplex owners. This is mainly due to the high projection costs. Most cinemas that telecast digital ads require top-quality projectors. Projectors that are compatible with technologies like 2K cinemas provided by Scrabble cost Rs 55 lakh to Rs 60 lakh, while a projector with a lower resolution in the MPEG format costs Rs 4 lakh to Rs 5 lakh.

Gautam Dutta, CEO, PVR Cinemedia, says, “Cinema advertising has been traditionally weak on two fronts — audit and measurement. While measurement is an area that is still untapped, digital systems give advertisers a clear picture on audit. Advertisers are given a log or a password through which they have access to the details regarding the number of times an ad was aired, forwarded or chopped off.”

However, he adds that due to the superior visual and sound quality of digital in-cinema advertising, an upbeat future lies ahead for exhibitors and advertisers.

As 2009 turns the corner, the Hindi film industry’s morale hinges on five mega releases. After a dull 12 months, will Lady Luck finally smile on a despairing industry?

It’s make-or-break time for the Hindi film industry and crystal-ball gazing has never been this scary.

The next five months will see the release of five mega films, and virtually riding on their success is the morale of the industry itself. So will it be a high-five? Or will the sinking morale of an industry that has witnessed flop after flop, not to mention the drought during the multiplex producer impasse, sink even lower?

Yes, when we ring out the old and look to the year ahead, we’ll analyse what went wrong in 2009. Not to mention tallying box office collections that have been dismal for the most part.

But let’s not cry over spilt milk and let’s look to the new year with expectation. Take a brief look at each film – a new release every month – that carries the hope of a buoyant and profitable 2009.

The Big Five

Hopefully opening a new innings is next week’s big release, Rajkumar Hirani’s 3 Idiots. This will be followed by Anil Sharma’s Veer, Karan Johar’s My Name Is Khan, Anurag Basu’s Kites and Prakash Jha’s Rajneeti. What makes these films hatke is their content and the fact that the actors slip into roles that are far from conventional.

Hirani’s back with another comic caper, 3 Idiots. In 2001, leading man Aamir Khan gave us a full-on comedy, Dil Chahta Hai. Though the movie has since been called a cult film by reviewers, it wasn’t a Ghajini or a Lagaan or for that matter a Taare Zameen Par at the box office.

Anil Sharma is back with an epic love story, Veer, after two duds, back-to-back: Hero – Love Story of A Spy and Ab Tumhare Hawale Watan Saathiyon. When actor Salman Khan tried turning back the pages of history in Suryavanshi, we all know what happened. And Veer is no Partner or Wanted, where he played roles he is supremely comfortable in.

Karan Johar is known for making films that are, well, Joharish – larger than life. In fact, he’s one director whose films actually sell the kind of dreams people want to live. This time, the maverick filmmaker has toyed with a human story, something you can relate to. For King Khan, My Name Is Khan is no dard-e-disco of Om Shanti Om or a Chak De! India.

After making movies you can identify with, Anurag Basu’s latest, Kites, is an unabashed commercial venture. In fact, do some quick math and you realise that the budget of Kites is more than all his previous films – Saaya, Murder, Tumsa Nahin Dekha, Gangster and Life in a… Metro – put together! As for leading man Hrithik Roshan, well, minus the Krrish mask and with no vroom vroom as in Dhoom 2, you need to keep your fingers crossed.

Ditto for Prakash Jha, who’s also made his most expensive film ever with Rajneeti. Known for his penchant for the political scenario of Bihar, Jha has gone the whole hog and taken on politics on the national stage.

An ensemble cast, yes, but what makes this project hot is the new avatars donned by Katrina Kaif (a la Sonia Gandhi, as the source insists) and Ranbir Kapoor. This is certainly an Ajab Politics Ki Ghazab Kahani and not Prem’s!

Turning Point

So there you have it. More than Rs 400 crore at stake and the confidence of film producers to boot. With ‘cost-cutting’ being the ‘in’ thing in tinsel town, will projects themselves take the fall, if these films fail to live up to expectations?

Utpal Acharya, Vice-President, Programming and Distribution, INOX Leisure, feels these films may generate business at the box office but he wonders if producers will turn a profit from these expensive projects.

“There’s around Rs 400 crore riding on these films and the industry hopes to earn at least 20 per cent on their investments. If these films bomb, at least Rs 500 crore will be at stake. The last quarter of this year and the first quarter of the next will be very crucial for the film industry and it is very important that these films do well,” he says.

Acharya knows the industry cannot afford to make any mistakes at this crucial juncture. However, the demand for these films is huge and exhibitors are hopeful of a great opening for each one of them with good collections at the first weekend.

Shyam Shroff looks to the future: “What if all five become major box office hits? How many more movies will be launched? How many more multiplexes will be built? How many more jobs will be created?”

Insiders say this is a critical time for the industry. This year, it’s producers, not the corporate houses, who have made money from the movies. Many corporates such as BIG Pictures, UTV and Eros had announced big projects and they are anxious to see how these five films fare before they make any more announcements.

Rewinding to the ‘corporatisation’ of the industry, an insider says most of the big acquisitions started at the end of 2009, when films were being acquired for Rs 60–70 crore. Most of these films released in 2009 and did not generate good business. As for profitability, neither, producers nor distributors nor exhibitors made money.

However, corporate houses suffered a double whammy. They incurred additional operational costs as they set up distribution offices in various centres. There were additional expenditures like acquisition costs and massive overheads, which further scaled up their balance sheets.

Market then and now

“Last year, when the market was positive, films fetched a high price through satellite rights, digital downloads, music etc. Ancillary revenue platforms were quite robust. Film companies could look beyond theatrical revenue to get more business. This year, the bubble burst and most films have not managed to recover costs beyond theatrical revenue,” the insider points out.

According to a veteran producer, every business model looks similar these days. “There are no business secrets. Everyone ended up engaging in the same marketing techniques, even similar marketing spends. Producers need to re-look at business models and not acquire films blindly. Producers need to value their projects,” he points out.

“In India, almost 60 per cent of business is in the organised sector. One should leverage this reality. Production houses need to evaluate films on merit and casting. They should not spend wantonly. Simply buying a Hrithik (Roshan) or a Salman (Khan) film is not enough. Production houses need to also keep their P&L (Profit and Loss) accounts in check,” he adds further.

Quiz Mahendra Soni, who apart from running a distribution firm, Venkatesh 2000 in West Bengal, is also involved with film production as well as exhibition, and he replies, “Production houses need to create long-term value for their films. Producers need to create and protect their IPR (Intellectual Property Rights). Studio 18, for instance, bought the rights for Ghajini for almost seven years. It is important to have the IPR for perpetuity so that companies can monetise on their films for a longer period.”

Delving deeper into lessons learnt, Soni adds, “All the films in a producer’s library sustain the functional costs for a long time. Nowadays, since producers sell their music rights for perpetuity to another company, satellite rights are also sold for seven to nine years and very little business is generated by home video rights. So even if few films work, how much will producers earn in the long term?”

Even if films like Kites and Rajneeti manage to garner record-breaking business, production houses are left with very little money, says Soni, whose firm has been releasing Star Fox movies in Bengal and soon, My Name Is Khan. Ask him what he expects from the film and he says, “My Name Is Khan is expected to fetch Rs 4.5 crore from the East, The best so far.”

With expectations sky high, Naaz Building, the hub of Hindi film traders (in Mumbai), is eagerly looking forward to the big roll-out. But not without apprehension. Asked which film he’s putting his money on, one trader who’s been in the business for three decades, says, “My Name Is Khan and Veer are the hottest”. “The trailer of Veer is terrific and everyone in Naaz is expecting a good opening. This film will either be a Mughal-e-Azam or a Razia Sultan,” he says.

CONTENT MATTERS

On the other mega projects, he says since Rajneeti deals with a political subject, the opening won’t be mind-blowing. “But going by Jha’s track-record and the cast, if the content is strong, the returns will be good. As for 3 Idiots, everyone in Naaz is sure that in the cities and multiplexes, this film will re-write history as far as business is concerned.”

Though everyone has their money on Hrithik Roshan’s performance, there are concerns about the release date of Kites. “It should have been released by now but everyone is clueless about its release date. The producers need to be sure before we comment on it,” says a source from Naaz.

Everyone’s keeping their fingers crossed. A leading distributor in the South, Dilip Tandon, minces no words. “If these films do not perform well at the box office, the trade is finished.”

According to him, the biggies have found it difficult to secure appropriate release space. “The backlog this year saw cramped weekends and more than two releases on important weekends,” he elaborates.

About the Big Five, Tandon says, “While we expect 3 Idiots to generate at least Rs 3 crore in the Nizam circuit, Veer, which will also release in Telugu, should fetch at least Rs 2.5 crore from Nizam. It’s a little early to talk about My Name Is Khan because Fox Star Studios is now focusing on Avatar. Kites and Rajneeti are also big films but distributors expect a reasonable deal.”

But what does the future hold after the Big Five? Post-recession, people have been careful about embarking on big-budget projects. Notice the absence of major announcements for next year. “But still, some films will be worth looking forward to. For instance, Ashtavinayak will be producing Akshay Kumar’s next film Khatta Meetha. UTV has also signed up Akshay Kumar for Priyadarshan’s next after De Dana Dan,” Acharya says.

Aman Gill, Head of Distribution with Studio 18 remarks, “There are a host of other big-budget films like Action Replay, Chance Pe Dance and House Full, where producers have invested huge sums. Producers create the content so they have every right to ask for more money for their products. It’s the same with distributors. Both producers and distributors can negotiate.”

Magic Ho!!!

Veteran exhibitor and owner of E-Square, Pune, Hemant Panchamiya believes in surprises. “It is hard to say how the five big films will perform at the ticket counter. The box office threw up ‘surprise’ hits like Wanted and Ajab Prem Ki Ghazab Kahani this year. Then there were films like Chandni Chowk To China, Tasveer and the recent Rocket Singh that did not do well though is was backed by a famous production house.” Point taken.

Panchamiya has his own grievances on behalf of multiplexwallahs. He says that despite the multiplex-producer impasse this year, it is exhibitors who are still being held to ransom.

“Multiplex owners will be hardest hit if these films do not do well. Also, since most of these movies entail astronomical production costs, it will be difficult for producers to break even. Distributors have put a high price tag on these films and this will not be viable for multiplexes,” Panchamiya remarks.

Rajesh Thadani, Proprietor, Multimedia Combines, predicts a price correction if the Big Five are a let-down, not to forget dipping confidence levels in large production houses.

“In that case, forthcoming films from these production houses will find few buyers or the prices that will demand. The opening occupancy rates for these films could be as high as 90 per cent but only the content will decide whether they are able to sustain themselves beyond a week,” he says.

Apart from increasing mobile and broadband penetration, what makes the online movie ticketing business a virtual sell-out?

Selling movie tickets online is passé but ticketing portals are increasingly embellishing the experience to hook more and more movie buffs to the virtual domain.

So all but savouring the caramel popcorn and steaming samosas, you can pick your seats, read movie reviews (sometimes even write one), check out film merchandise and download film posters, soundtracks and videos too.

The movie ticketing business is huge with an average 4 billion tickets sold every year. Of which online sales contribute a miniscule share. But industry experts feel the business has huge potential.

Utpal Acharya, Vice-President, Programming and Distribution, INOX Leisure, says, “Multiplexes can sell blocks of inventories through online ticketing sites. There have been instances where we have had to shut down our website due to heavy due for popular films.”
Online movie ticketing sites are also an effective tool to market films before their release. It’s a symbiotic process: while the website promotes a film, the producers enable co-branding options on these sites.

But, of course, constant upgrading is the name of the game; which is why websites such as bookmyshow.com and KyaZoonga have kept evolving since they were launched. With a presence in over 40 cities, KyaZoonga is backed by a $10-billion New York-based hedge fund that has multiple investments in cutting-edge e-media companies.

Bookmyshow, a part of Bigtree Entertainment Pvt Ltd, is a ticketing, information and analysis solutions provider. Bigtree was founded in 1999 with the help of investment by Chase Capital Partners JP Morgan.

It is India’s first entertainment ticketing company and now has interests in software sales and support, ticketing services, box-office tracking and analysis as well. The TV18 invested in the company in March 2007.

Ashish Hemrajani, Founder and CEO, Bigtree Entertainment Pvt Ltd, says, “Online movie ticketing has democratised the business of film ticketing. We have been able to curb black marketing of film tickets outside cinema halls to a great extent. We have encouraged consumers to go online and block tickets in a legitimate manner.”

Film communication of various types forms the bedrock of the online film ticketing business. These sites also form the marketing arm in the sales mix of selling movies.

For instance, Bookmyshow.com launched the above-the-line (ATL) campaign for films like Dostana, Wake Up Sid and Avatar by promoting them on TV and in the online space. The site also promoted online contests to engage audiences with the films. KyaZoonga has partnered with various films like Ajab Prem Ki Ghazab Kahani, Kambakkht Ishq and Quickgun Murugan in the past.

The site has now partnered with Karan Johar’s next My Name Is Khan for a co-branded campaign across television, radio, outdoor, print, online and mobile. Through this association, KyaZoonga users will be able to get instant alerts about booking My Name Is Khan tickets for the film on the site even before the Advance Booking window opens!

Hemrajani adds, “Our main task is to drive sales and provide media support, which is appreciated by film producers. Online ticketing also curbs piracy because we encourage people to watch films in cinema halls, which indirectly boost footfalls.”

The company, which had around 20 competitors when it was launched in 1999, enjoys a market share of 80 to 85 per cent and a footprint that now extends across 40 outlets in 60 cities in India.
As a testament to the growing success of the online ticketing business, Bookmyshow recently earned Rs 9 crore and Rs 6 crore by selling tickets of Rajkumar Hirani’s 3 Idiots and James Cameron’s Avatar respectively.

Neetu Bhatia, Co-founder, Chairman and CEO, KyaZoonga.com says, “Online film sites provide the movie-going audience easy access and help exhibitors size up and scale their revenue share. We help a film by driving sales, which in turn increases box-office collections.”

Ticketing sites have various sales channels via platforms such as the Internet, mobile applications, on WAP or call centers. Tickets are also delivered to the consumer at an additional convenience fee of between Rs 10 and Rs 15. Being a single window for ticket bookings for movies, cricket as well as sporting events, they make things much easier for consumers.

Industry experts also point out that consumers who book tickets online tend to spend more at the multiplex. Research pegs this amount at 10 per cent to 12 per cent, which comes from the purchase of ancillary items such as food and beverages.

Research also suggests that in the top ten movie markets, almost 15 per cent of all tickets are sold online and almost 50 per cent tickets are sold in advance. For films with limited releases, around 25 per cent tickets are sold online.

There were reports a few years ago that IDBI Bank had planned to tie up with a company to vend movie tickets through ATM machines. However, the deal fell through as the Reserve Bank of India held up the stop sign.

Apart from movies, tickets for sporting events and concerts are also sold online. However, last year was a difficult year for these sites, thanks to the producer-multiplex impasse which blocked film releases for three months. Next, the IPL was played in South Africa, proving a further setback.
It was a blessing in the long run. According to Hemrajani, “After the strike last year, we experienced a shift in focus from films to other events such as concerts and live events. Today, almost 25 per cent of our revenue is generated by non-movie ticket sales, compared to less than 1 per cent a year ago.”

Sample the popularity of online ticketing for other types of entertainment. Almost 30 per cent of tickets for plays at the popular Prithvi Theatre in Mumbai are sold through Bookmyshow. While ease of booking has boosted occupancy at Prithvi Theatre by 20-25 per cent, footfalls in theatres have increased 70-75 per cent.

While considering demographics, ticketing sites receive the lion’s share of their revenues from the South – Chennai, Hyderabad and Bangalore – thanks mainly to high Internet literacy rates.

The major challenge hindering the growth of this medium is the current broadband penetration, which is pegged at 4-5 million in India. However, India has much better mobile penetration and is the third-largest growing mobile market in the world. No wonder most of these sites have strengthened their mobile platforms.

These sites also face competition from the websites of multiplexes, which already sell tickets online.
Do they have a strategy to counter this challenge? Bhatia says, “We offer services that aggregate every theatre and multiplex under one umbrella. It is more convenient for consumers to visit our sites than log into individual sites.”

Ticketing sites have also ramped up the retail aspect of the business by enabling cash transactions. Since smaller cities are reluctant to use credit/debit cards to shop online, KyaZoonga enables cash transactions through retail outlets like petrol pumps and café shops.

Also, according to a government regulation, only 30 per cent of movie tickets can be sold outside the box office in Maharashtra. The remaining 70 per cent must be sold at the box office window. To get around this, ticketing sites provide consumers with a transaction ID, which can later be redeemed at the box office counter for the physical tickets.

Bhatia concludes, “We have grown more than 20 times from where we began. As far as the online movie ticket business is concerned, the sky is the limit. We have only scratched the surface yet.”

Aamir Khan’s films are always much awaited not just by the audience but by the entire film fraternity too. It’s no wonder then that when the first trailer of the film Talaash starring Aamir Khan, Rani Mukerji and Kareena Kapoor hit the theaters, it created lot of buzz about the rights amongst the distributors.

But looks like the filmmakers are going to keep the distribution rights with themselves. Utpal Acharya Head of Distribution and Acquisition, Reliance Entertainment says, “We do not sell the rights of any of our films and we will not be selling the rights of Talaash either”.

Now it’s the audience reaction that’s awaited and we are sure like his other films this one will recreate the magic too.

Going by the growing budgets, it is evident that the Bangla film industry is going places

The Indian film industry churns out almost 200 films a year, out of which Hindi films undoubtedly enjoy the major market share. As far as the regional films are concerned, it is the South Indian film industry that comes in a close second. So much so that it is sometimes dubbed almost parallel to the Hindi film industry. And now we are witnessing a surge in the growth of the Bangla films too.

The period between the 50’s and the 70’s were probably the Golden era of the Bangla film industry with films by veteran directors like Ritwik Ghatak and the Oscar award winning Satyajit Ray dominating the Bangla film space. The industry nosedived during the 80s and now has risen like a phoenix yet again.

From a mere two-film industry in 2001, to 96 releases in 2010, Tollywood is making a habit of hits. 2011 saw one of the biggest years in Bengali films. Films are now even dominating the box office for more than just one or two weeks and sometimes experiencing even a 100-day run at the cinemas.

With the burgeoning production budgets, many production houses are choosing foreign locales spread across the globe like the US, Bangkok, Switzerland, Singapore, Hong Kong and Dubai to shoot their films entirely. Some small filmmakers are also using these destinations to shoot merely a song sometimes. While earlier, filmmakers were shooting films on a budget of about Rs 90 lakh to Rs 1 crore, the investments have now shot up as high as Rs. 5 crore. Some filmmakers are quite optimistic that the budgets are likely to soar further to Rs 15 crore as well.

Hence, if the film has a foreign location as its USP, the marketing will also have to have a similar impact. Naturally, the marketing and promotional budgets have skyrocketed too. So while earlier, filmmakers would spend close to Rs 10 to Rs 15 lakh to promote a film, now they are even ready to shell out as high as Rs 1 crore for the same.

This may also have to do with the fact that a lot of corporate production houses are looking eastwards. The digital cinemas entering the domain have also resulted in lowering piracy and making sure that the films run at least seven to eight weeks at the theatres.

Just like the Hindi film industry, Bengali films are also now being segregated into two kinds: the commercial films that are more akin to fetching revenues from the single screens and the content rich multiplex films.

While the commercial Bengali cinema comprises mainly of remakes of popular action films like Singham, the multiplex films usually are directed by critically acclaimed directors like Rituparno Ghosh, Aparna Sen and Aniruddha Roy Choudhury.

We spoke to a few eminent producers, distributors, directors and actors from the Bangla film industry to gauge the real reason behind the sudden boom in Tollywood. Here’s what they had to say…

Mahendra Soni

Producer, Shree Venkatesh Films (SVF)

The Bangla film industry has grown a lot over the last three to four years. The budgets and investments for these films have also gone up. The number of screens that these films release across has gone up from 170 to 200. The major digital cinema revolution that occurred at West Bengal, has really helped the film industry. We have witnessed a rise not just in the investments but also in the marketing budgets of a film. These films are now using the television, outdoor, print and social media to promote themselves too. Though a lot of corporate production houses like UTV, Viacom 18 and Reliance Entertainment have shown a keen interest in Bangla films, there is still no actual footprint that these companies have made here. Our films are not just earning good profits but are also bagging critical acclaim in the film festivals around the globe.

As we hit the half-way mark of 2012, we take stock of the hits and misses during the first six months of the year. Here’s the report card

Could it get any better? We are a superstitious industry and it may not be a good omen to count our chickens but, considering its boom time in the Hindi film industry, count them we must. So here goes.

Business is booming with every successive Friday. The number of cinemas in India is growing, and despite the exorbitant ticket prices, people are willing to shell out and even come back for an encore. And it’s not just Hindi movies; regional cinema and dubbed Hollywood films are also doing pretty well at the ticket counter.

Yes, Bollywood is on song. Actors are charging skyrocketing sums but producers are willing to pay the price. This is fair indication that business is only expected to grow.

Here’s another reason to pop the champagne. More than 10 movies have crossed the Rs 100-crore mark and there are some more probables lined up for the second half of 2012. The first half has already delivered three movies – Agneepath, Housefull 2 and Rowdy Rathore – which crossed the magical Rs 100-crore figure. And if all three were masala entertainers, there were many films which would constitute ‘meaningful cinema’ and made on modest budgets that also did well.

If last year saw 54 movies releasing in the first six months, 2012 had 70. The success ratio this year too is much better than that of last year. Interestingly, filmmakers are saying “bring it on” and are releasing their movies during major cricket tournaments, shraddh or weeks considered jinxed.

And why wait for the ‘right time’ or ‘lucky week’? In a country where more than a hundred films are made but have only 52 Fridays to release, there’s no choice but to ignore the superstitious and auspicious. And guess what? They’re drawing colourful results. The line-up for the next six months, starting with this week’s Bol Bachchan, is mouth-watering and 2012 promises to be a whopper for the trade.

We asked some top-notch professionals, distributors and exhibitors to assess the first six months of 2012. We also asked them which film caught their eye and to name those that did not live up to expectations. Here’s a report card on how the Hindi film industry has performed in the first half of 2012.

Sanjeev Lamba, CEO, Reliance Entertainment; Shibasish Sarkar, CFO; Purva Naresh, Head of Production; Sweta Agnihotri, COO, Home Video & Games; Sameer Chopra, Head of Marketing; Mahesh Ramnathan, COO; and Utpal Acharya, Head of Distribution in conversation with team Box Office India

BOI: Can you introduce us to your team and the journey of Reliance Entertainment?

Sanjeev Lamba (SL): Shibasish Sarkar is our CFO and he also manages our regional slate. He has been with us for six years. Purva Naresh looks after production – scripts, line production, budgets – and she too has been with us for six years. Sweta Agnihotri handles our DVD, home video and games businesses. We represent our own studio as well as many international studios in India for home video and also Dreamworks and Paramount. Sweta has a separate sales team, we also have a business in games and toys. Sweta has been with us for six years.

Sameer (Chopra) has been with us for three years and heads the marketing team. Mahesh Ramanathan runs our international distribution team. He also partners Shubhashish in our regional businesses. Mahesh has been with the company for six and a half years. Utpal Acharya runs our domestic distribution including our Hollywood distribution in India. He has been with us for three and a half years.

BOI: Can each of you briefly introduce yourself?

Shibasish Sarkar (SS): I joined in July 2007 and my responsibility was to handle the finance of the film division. But at Reliance, your designation, responsibilities and roles can mesh. I have worked with UTV and Viacom. I was also with Percept for a short time and before that, with an FMCG company. I worked in the media industry for 10-11 years and have watched the film industry evolve.

Purva Naresh (PN): I am a graduate of FTII in Pune, and I specialised in film and TV production. I have worked in the industry for around 15 years. I started with Star, then Percept. I joined Mr Rakesh Roshan after that, where I worked with him on Krrish and Krrazy 4. Then I joined Reliance as an EP and was promoted to the role of production head three years ago. I run logistics and operations on the films that we have as well as look into new projects.

Sweta Agnihotri (SA): I am a subset of the movie business, since I handle the home entertainment business. Physical sales were pretty big a while back and it still exists. Other than that, we also want to evolve into a digital model and are taking a few steps into scaling up in that department. I also look at the toys business since we have a fairly large physical team and depots and warehousing.

Sameer Chopra (SC): I started my career in sales, after which I did stints at Percept and Lintas. I have worked in the film industry for eight years. I began with Sahara One Motion Pictures, I was with Viacom18 and then I joined Reliance. I head marketing here and am responsible for communication and advertising of all the films we roll out, English as well as Hollywood.

Mahesh Ramnathan (MR): I am a management graduate from IIM and have spent a large part of my career in the FMCG and telecom industries. I got into the movie business at Percept Picture Company and joined Reliance Entertainment in 2007.

I was the first employee at Big Pictures, as it was then called. At the time, we made art house and commercial films. Seven of our films won up to 17 National Awards. Since Sanjeev came in, we have reconfigured to do commercial films. In the regional space, we have a great creative pool and a whole lot of talent with a new breed of actors. I also manage the international business of Reliance.

I also look after non-traditional sales and one of our success stories in this space was 3 Idiots. We also distribute films of other studios. Bhaag Milkha Bhaag was one such film. It was the first time a studio had asked Reliance to distribute their own film.

Utpal Acharya (UA): I have worked in the film industry for 15 years. I did my MBA and my first job was at Sony Pictures, then UTV and Viacom18. From production, I moved to exhibition with Inox. Then, one day, Sanjeev asked me to join Reliance. I came on board with the company’s distribution division. I think, in the last 15 years, I have distributed 300-odd films.

BOI: Some of you have been around even before Mr Lamba took over as CEO. What changes in mandate has he brought about?

PN: Well, he’s brought the team together and there’s also a lot more definition to the organisation. He has streamlined a lot of processes. Earlier, our roles overlapped quite a bit but it’s much better defined now. Also, green-lighting projects has become a two-pronged approach. He has brought a lot of clarity to the perspective of green-lighting productions.

SS: He has created a very democratic environment, where we can comfortably share our thoughts and views. We have a cumulative experience of 75 to 80 years and that has helped our DNA.

He is also very focused and is clear about the number of films we should make, turnover and making money. We are very focused about what we want to achieve and that comes from the leader.

SL: I can safely say that there is not a single member of this team who does not know exactly what their job is. Almost everyone also has a second job. For instance, Subhashish is not just the CFO but I have encouraged him to also step into the frontline of the business by handling the regional slate.

Mahesh not only does the international job but also the regional job and heads South production. Utpal not only looks after the entire domestic distribution but he pulls the entire business model of Hollywood. So everybody has been given an opportunity to do more and that’s how they and the studio will grow.

As Tu Hi Re released this week, lead actors Swwapnil Joshi, Sai Tamhankar and Tejaswini Pandit; director Sanjay Jadhav; and producer Utpal Acharya talk about their hit films as a team, competing with other film industries and Marathi cinema going from strength to strength.

Box Office India (BOI): Can you tell us about the film and how you conceived it?

Sanjay Jadhav (Sanjay): This is actually our third film together… Swwapnil (Joshi), Sai (Tamhankar) and mine. Duniyadari was the first, then Pyaar Vali Love Story and now Tu Hi Re. After Pyaar Vali Love Story, even the producers are the same. The new addition is Tejaswini (Pandit).

Our film’s story starts after eight years of marriage and is the kind of love that happens in Indian households after years of marriage.

BOI: You just said it was an obvious decision to cast Sai and Swwapnil. Was that due to the comfort factor?

Sanjay: It is all about the comfort zone. We are thick friends, almost like family. And if you have such talent in your family, why would you go elsewhere to look for talent?

BOI: Utpal, as a producer, how did you come on board?

Utpal Acharya (UA): I have known Sanjay for 12 years and this is the most successful director-actor pair after Duniyadari. Pyaar Vali Love Story was their second movie and that’s where our journey began. Now I am also part of their family. So Tu Hi Re was the next logical choice because of its story.

There is so much good content but there is no proper exploitation to monetise this industry. So my contribution to this industry is to take this whole process to a studio structure with increasingly significant and more earthy Marathi content.

BOI: Sanjay, you just said that Sai and Swwapnil are like family. At the script level, do you keep them in mind as your characters?

Sanjay: Actually, yes, like anda pehle ayaa tha yaa murgi? Similarly, I don’t know which comes first… keeping them in mind inspiring the story or starting with the story and having them come to mind automatically.

BOI: Can you elaborate on your characters in the film?

Swwapnil Joshi (SJ): Interestingly, it is the first time I will be playing characters in two different age groups. I am playing a guy in his 20s and a guy in his 30s. The perspective of life is very different for a 20-year-old and a 30-year-old today. Traits like being carefree, negligent and arrogant and this entire ‘dekh lenge’ attitude continues till my character gets married. Then, this nonchalant nature matures, and with circumstances, the reactions are different.

It’s about how his entire life turns around and the circumstances and compulsion he has to undergo, and while doing that, how love plays an extremely significant role. My character has two completely different shades in the film. As an actor, too, this was a very challenging space, far from my comfort zone.

Sai Tamhankar (ST): I play Siddharth’s (Swwapnil) wife, Nandini, who is total ‘wife material’. Every woman who watches her in the film will relate to her. Either they have been like that for years or are on the verge of becoming her. So unlike the bold image that I have, I think this is going to be a refreshing change as I am playing a non-glamorous wife this time. It’s been a long time since I have played such a beautiful, layered character. My character has immense value for this thing ‘love’. So there are three different perspectives regarding love in the film. For all of us, this film is far removed from our respective comfort zones.

Tejaswini Pandit (TP): I play a character called Bhairavi and she belongs to an extremely rich family. She doesn’t say much and largely conveys her thoughts and feelings through her expressions. She is deeply in love with Siddharth. There comes a point when her life takes a U-turn and she goes to the extreme level of love. I think all the three characters are extremists when it comes to love in their own unique ways.

BOI: The Marathi film industry is regarded as one of the richest regional industries with regard to content. How have you seen this change come about?

Sanjay: We are very happy that Marathi films are also making a mark in terms of content and growing box-office numbers. The best part is that, in the process, we are also entertaining people. During the last decade, there were films that did not make money but things changed after Shwaas, and they picked up after Duniyadari. Marathi cinema had content-driven films earlier too but filmmakers are now trying to strike a balance with the commercial aspects of filmmaking.

ST: I think we have cracked the code on how to package our films. Thus, presentation and marketing have improved, especially in the last five to six years. I am very proud that in Marathi cinema, content is king. It is not about the actor or a star but about content and that is why we are progressing so fast.

BOI: Utpal, compared to other regional industries, what was it about Marathi cinema that attracted you as a producer?

UA: First, the Marathi film industry is based in Mumbai, which is the hub of cinema. A couple of years ago, distributors and producers used to struggle to get proper showcasing for their films and multiplexes used to complete their quota of Marathi films because they had to renew their licence. And let’s face it, Duniyadari was the gateway to the commercial aspect of Marathi cinema, in terms of the way films were being produced, the content and the way marketing was taking centre stage. So the overall packaging of Marathi cinema had changed.

BOI: Sanjay, how did life change for you after Duniyadari?

Sanjay: Hugely, I mean ye sirf kitaabon mein padha tha that raaton raat zindagi badal jaati hai. I had one kind of life on that Thursday night, the night before my film released, and when I woke up the next morning, my life was completely different. The way people perceived me changed overnight. Earlier, when I used to enter a room, people used to treat me like a friend but after that Friday, they started treating me like a friend, philosopher and guide. (Laughs)

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