Although being the largest film producing country making over 1100 films every year (Hollywood makes

700!), with a film making tradition of a century, film making was recognized as an industry only as recently as 2000!!....... The Indian film industry constitutes films made in India in a variety of languages. Most films are made in Hindi (350) followed by Telugu (300) and the remaining in other languages. The industry size is estimated at INR 20,000 Crores (around USD 4 Billion) & a typical share of source of revenue is: 70% from ticket sales, 8% overseas rights, 8% music rights, 8% TV, DVD mobile, gaming rights etc and about 4% from Hollywood films, either dubbed or original. Interestingly, Hollywood which rakes in a cool USD 10 Billion each year rules other markets like Europe and also Non-English markets like Japan where they have a 40% share, has had to accept the supremacy of Bollywood in India. Most Hollywood producers like Sony, Warner and Disney prefer to make true blue local films for this market rather than selling Hollywood films here ( Its just like McDonald making veg burgers for India!). After all it is difficult to ignore 20 million people going to the movies every day!! Like Hollywood, even Bollywood is secretive about cost of production. While the numbers could be suspect, it is commonly assumed that while a Hollywood film of 60-90 minute costs on an average USD 75 million to make, Bollywood makes a 140 160 minute film at an average cost of around 2.5 Million (not including marketing costs, only production) Of course each has its exceptional big spender list every year like Avatar (USD 300 Million) and Jodha Akbar (USD 15 Million)

Bollywood was born in 1899 with the production of a short film and Hollywoods birth happened 11 years later in 1910 with a Biography melodrama. Hollywood produces 500 films per year on average and has a worldwide audience of 2.6 billion whereas Bollywood produces more than 1000 (not consistently) films every year and has a worldwide audience of 3 Billion. In terms of vieweship, Bollywood overtook Hollywood in 2004 and has been leading ever since. Hollywoods Domination Bollywood made a revenue of $1.75 Billion in 2006(estimated to rise to $3.4 Billion in 2010) which is only half the revenue of what one Hollywood studio, Walt Disney made in 2006 and that is saying a lot. However, while Hollywoods market inside the US has almost saturated, Indias 500 million population under the age of 20 will ensure that the market inside India will grow exponentially in the coming years. Although Hollywood produces only a fraction of the number of films made all over the world, it garners a staggering 75% of total revenues. Also, 50% of its earnings(expected to grow to 80% in the next 20 years) come from the foreign market whereas for Bollywood it is 20%. Hollywood has an overwhelming domination among the top grossers worldwide almost all of the top 50 movies are made in Hollywood. It has virtually eclipsed all other film

industries except Bollywood for instance, the European film industry cut down to 1/10th of its size since 1910. Spiralling Production Costs and Risks The average cost of producing, marketing and distributing a Hollywood film is more than US$60 million though a Star Wars or Harry Potter costs around $100 million and only one out of ten succeeds. At the same time Shekhar Kapurs Paani which is tipped to be the costliest film ever to be made in Bollywood will cost $20 million and the average cost of a big movie is around $ 5 Million. 50% of the movies produced in Bollywood are never released and on an average more than 95% of those released results in losses. Bollywoods NRI Connection Around 15 million Indian expatriates living in different parts of the world account for over 65% ofBollywoods earnings. An estimated $800 is spent by NRIs in Indian movies and music. US (2 million Indian expats), UK(1.5 million) , South Africa(1 million of Africas 2 million Indian population) are major markets for Bollywood. The Bottomline Despite the hype surrounding Bollywoods increasing influence in the world movie industry, it is a long way from being a threat to Hollywoods influence. Revenue-wise Hollywood movies does not depend on ticket sales alone. It follows the time-tested franchise-formula where a major part of the revenue comes from other segments like TV networks, magazines, home-videos etc. Ofcourse, Bollywood is toying the same line but it is too early to say if a successful process is in place. A few years ago, 70% of the money for movies made in Mumbai came as liquid cash from traders in real-estate, jewellery and the Mumbai underworld. Things have improved, but the financing of Bollywood movies is still shady business coming largely from the non-organised sector and with virtually no financing from the banking sector unlike Hollywood where production studios and the organised sector treat it as an industry and has a well established network. Bollywood was officially recognised as an industry by the government only in 1998. And if Bollywood basks in the glory of dubious Shah Rukh Khan has more fans than Tom Cruise reports for too long, it may not be a happy ending afterall. Sources: Variety International Film Guide, Asianfilms.org, Reuters