Posted:
Bollywood breathes easy in Q2
14 Sep 2009, 0001 hrs IST, Nandini Raghavendra & Leena Mulchandani, ET Bureau
MUMBAI: After a disastrous first quarter (Q1) Bollywood's script is looking better in Q2.
This is on the back of successes like Saif Ali
Khan's Love Aaj Kal and Vishal
Bhardwaj's Kaminey, both of which had almost the whole value chain of Bollywood laughing all the way to the bank.
With less than two weeks left for the September quarter to end, hopes are now pinned on films like Salman Khan's Wanted, Priyanka Chopra's What's Your Rashee and Rani Mukherjee's Dil Bole Hadippa to bring some cheer to the bottomline of companies whose business is driven by Bollywood's fortunes.
For the film industry from producer and distributor to exhibitor, there has been little to cheer about so far, with only three movies unequivocally being declared a hit — Yash Raj Films, New York (grossing Rs 87 crore worldwide), Love Aaj Kal (over Rs 100 crore) and UTV's Kaminey (Rs 80 crore). These also have been the only three films to have crossed the magic figure of Rs 17.5 crore net collections across the six major multiplex chains and, therefore, entitled to a 2% higher share of the profits.
"The second quarter has been a pretty decent one for the exhibitors, and with four big films still to release we are hopeful. We will end this financial year with tentpole films like My Name is Khan and Kites," said Devang Sampat, senior vice-president, Cinemax.
From the value chain point of view, Yash Raj and UTV should rake in from films like New York and Kaminey as both films are produced and distributed by the studios. "Yes, we are going to make money on Kaminey (cost of production with marketing is Rs 40 crore and a 900-print release), which I am confident will cross the Rs 100 crore gross mark when it completes its run," says Siddharth Roy Kapur, CEO, UTV Motion Pictures, having garnered both critical and commercial accolades for the movie. For Eros International on the other hand, Love Aaj Kal was an acquisition, so the costs are much higher.
For the industry, like last year, Q3 is the period lined with with big-banner movies like Raju Hirani's Three Idiots starring Aamir Khan, Ashtavinayak's Blue, Salman and Kareena's Main Aur Mrs Khanna among many others. "Of the approximately 200 Hindi films released each year, a quarter is produced by big banners and studios. These are released typically during Q3. Hence, revenues from theatrical and most other rights get collected and accounted during Q4," said associate director, Entertainment & Media Practice, PwC, Smita Jha.
Critique and commerce is a rare combination for Bollywood and Vishal Bhardwaj's Kaminey has managed to net both, the rest of the big boys are keeping their fingers crossed for the same.
14 Sep 2009, 0001 hrs IST, Nandini Raghavendra & Leena Mulchandani, ET Bureau
MUMBAI: After a disastrous first quarter (Q1) Bollywood's script is looking better in Q2.
This is on the back of successes like Saif Ali
Khan's Love Aaj Kal and Vishal
Bhardwaj's Kaminey, both of which had almost the whole value chain of Bollywood laughing all the way to the bank.
With less than two weeks left for the September quarter to end, hopes are now pinned on films like Salman Khan's Wanted, Priyanka Chopra's What's Your Rashee and Rani Mukherjee's Dil Bole Hadippa to bring some cheer to the bottomline of companies whose business is driven by Bollywood's fortunes.
For the film industry from producer and distributor to exhibitor, there has been little to cheer about so far, with only three movies unequivocally being declared a hit — Yash Raj Films, New York (grossing Rs 87 crore worldwide), Love Aaj Kal (over Rs 100 crore) and UTV's Kaminey (Rs 80 crore). These also have been the only three films to have crossed the magic figure of Rs 17.5 crore net collections across the six major multiplex chains and, therefore, entitled to a 2% higher share of the profits.
"The second quarter has been a pretty decent one for the exhibitors, and with four big films still to release we are hopeful. We will end this financial year with tentpole films like My Name is Khan and Kites," said Devang Sampat, senior vice-president, Cinemax.
From the value chain point of view, Yash Raj and UTV should rake in from films like New York and Kaminey as both films are produced and distributed by the studios. "Yes, we are going to make money on Kaminey (cost of production with marketing is Rs 40 crore and a 900-print release), which I am confident will cross the Rs 100 crore gross mark when it completes its run," says Siddharth Roy Kapur, CEO, UTV Motion Pictures, having garnered both critical and commercial accolades for the movie. For Eros International on the other hand, Love Aaj Kal was an acquisition, so the costs are much higher.
For the industry, like last year, Q3 is the period lined with with big-banner movies like Raju Hirani's Three Idiots starring Aamir Khan, Ashtavinayak's Blue, Salman and Kareena's Main Aur Mrs Khanna among many others. "Of the approximately 200 Hindi films released each year, a quarter is produced by big banners and studios. These are released typically during Q3. Hence, revenues from theatrical and most other rights get collected and accounted during Q4," said associate director, Entertainment & Media Practice, PwC, Smita Jha.
Critique and commerce is a rare combination for Bollywood and Vishal Bhardwaj's Kaminey has managed to net both, the rest of the big boys are keeping their fingers crossed for the same.
http://economictimes.indiatimes.com/ET-Cetera/Bollywood-breathes-easy-in-Q2/articleshow/5007112.cms
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