PwC: Indian film and television industry at Rs 28,305 crore; shows upward growth

The industry provided employment to 18.30 lakh people during 2008-09

The latest media report, titled Economic Contribution of Indian Film and Television Industry, released by PricewaterhouseCoopers (PwC) has given a thumbs-up to the Indian film and television industry for its contribution to the Indian economy.

The report, conducted by PwC and backed and supported by the Motion Picture Association of America and Motion Pictures Dist. Association (India), is the first of its kind in India. Similar reports have been attempted in the past in places including Hong Kong, Australia and other key markets in the Asia Pacific region.

As per the report, the combined revenues of Indian film and television industry was Rs 28,305 crore for the year 2008-09, which approximately constituted 0.532 per cent of the GDP (gross domestic product) of the country. This was higher than the advertising industry's contribution of 0.4 per cent to the GDP during the same period.

Also, the industry provided employment to as many as 18.30 lakh people during the same period.

Talking about the objective of the report and the importance of the findings for the Indian film and television industry, Rajiv Dalal, managing director, Motion Pictures Dist. Association (India), says, "The report is aimed at capturing the contribution of the Indian film and television industry to the Indian economy in terms of its contribution to the GDP of the country and the employment opportunities made available by the industry. The task is to impress upon the government and related authorities the importance of the industry and thus, the need to protect it."

The report highlights the growth story of regional cinema in the country. Though cinema in India is still dominated by Hindi releases, over the last few years, regional cinema has experienced a spurt in growth on account of the increasing number of releases in theatres across the country and outside. The box office collections from regional films are estimated to be Rs 1,508 crore.

According to Dalal, another interesting change within film industry is its corporatization, with the entry of players such as Reliance, UTV and Eros. The film industry is no longer crowded with smaller production houses. The entry of big names has seen vertical integration, with players getting into multiple functions including production and exhibition.

Another area to cheer about is the increasing participation and contribution of US productions to the industry. The report states that at present, the US-international film industry is contributing Rs 304 crore to the Indian film industry and accounts for 14,000 jobs.

Factors contributing to the growth of US-international film industry include expansion of viewership beyond metro and large cities; increasing popularity and higher box office collections of dubbed versions of US films; and the entry of global players in the Indian film industry through co-productions and as distributors of Hindi films.

However, the growth story of the Indian film and television industry faces a few hurdles as well.

According to Dan Glickman, chairperson, Motion Picture Association of America, "While still growing, the Indian film and television industry already contributes significantly to India's economy but it's the menace of copyright theft that jeopardizes a movie's ability to make money - if at all. This affects the level of investment available for new films and the ability to create new jobs for workers throughout the country."