Bolly still to gain from merchandising

Film merchandising, a substantial revenue generator in Hollywood, is yet to make a mark in Bollywood.

Memorabilia from Rajshri's Maine Pyaar Kiya perhaps represented the earliest instance of merchandising. But it was not systematised. It took Jadoo, the adorable alien from the film Koi Mil Gaya..., to do business worth Rs 1 crore.

But with corporates entering Bollywood and media houses joining hands with film producers, merchandising is beginning to be considered an important source of revenue. However, even now only a few producers have the time and energy to pursue their own merchandising.

"There is a need for sustained investments and constant efforts. We need better planning, but it makes things difficult if one cannot anticipate the fate of the film while making it or even after its completion," says Hiren Gada, vice-president, Shemaroo Video.

Not all producers have ignored merchandising. With the success of Hum Apke Hai Kaun, the clothes of Salman Khan and the sarees of Madhuri Dixit became popular. But effective merchandising requires a strategy.

"Film makers are bogged down with getting finance and top stars. Completion of the film on time and getting censor board certification are other challenges they face. No one has time to think of merchandising," says Anil Nagrath, managing director, Nagrath Consultants. Film makers are missing out on other related revenue opportunities as well.
"Royalty on film music from FM radio stations is a pittance. We don't earn revenue from movie ringtone downloads for cellphones. Hotels conduct film music performances without paying us anything. Producers have not understood their loss and the government, too, does not seem to understand the effect of the revenue loss," says Pehlaj Nilhani, president, Association of Motion Pictures and Television Programme Producers.