CONTINUOUS ASSESSMENT FILE - satyam

8/7/2019 CONTINUOUS ASSESSMENT FILE - satyam

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CONTINUOUS ASSESSMENT FILE

SUBMITTED BY :

SATYAM SHIVA GUPTA

MBA INTERNATIONAL BUSINESS, BATCH 2009 11

SUBMITTED TO :

MS. SUMITRA SINGH

PROF. BUSINESS COMMUNICATION

AMITY BUSINESS SCHOOL, LUCKNOW


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Media & Entertainment

The Indian media and entertainment (M&E) industry is one of the fastest growing

industries in the country. Its various segmentsfilm, television, advertising, print and

digital among othershave witnessed tremendous growth in the last few years.

According to a report joint ly published by the Federation of Indian Chambers of

Commerce and Industry (FICCI) and KPMG, the media and entertainment industry in

India is likely to grow 12.5 per cent per annum over the next five years and touch

US$ 20.09 billion by 2013.

With a majority of the population below the age of 35, and increasing disposable

income in Indian households, the average spend on media and entertainment

industry is likely to grow in India, according to a report by PricewaterhouseCooopers

(PwC).

Television

According to the study by FICCI and KPMG, the television industry, which is

currently valued at about US$ 4.63 billion, will expand by 14.5 per cent between

2009 and 2013.

According to a PwC report, the television advertising industry is expected to account

for a share of 41.0 per cent of the advertising industry in 2013, up from the present

share of 39.0 per cent.


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Digital distribution platforms such as direct -to-home (DTH) and Mobile TV are

transforming the industry. Mobile TVwhere content will stream in on mobile

phonesis poised to grow big with the advent of 3G, according to experts. With the

DTH industry estimated to grow by almost 100 per cent in the current financial

yearfrom US$ 310.16 million in 2008-09 to anexpected US$ 620.25 million in

2009-10leading DTH firms such as Sun Direct, Bharti Airtel DTH and Big TV have

increased their marketing budget by 20 -25 per cent in fiscal year 2010.

Further, television channels such as Cartoon Network, Pogo, Disney, MTV and Star

Plus are expanding their product range to tap India's growing US$ 125.9 million

licensing and merchandise market.

The television distribution industry is expected to reach US$ 5.2 billion in 2013 from

the estimated size of US$ 3.12 billion in 2008, which translates into a growth of 12.2

per cent on a cumulative basis over the period.

Indias national television broadcaster, Doordarshan, will be completely digitized by

2017,according to Mr Zohra Chatterji, Joint Secretary, Information and Broadcasting

ministry.

Music

Industry experts estimate that the current size of the music industry is about US$

149 million. According to a PwC study, the industry is likely to grow to become a US$

164.56 million industry by 2012.


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While cassettes and compact discs (CDs) have traditionally accounted for most of

the sales, future growth will come from non-physical formats such as digital

downloads and ringtones, among others. Digital music sales are expected to account

for 88 per cent of the total music industry revenue in India by 2009.

According to a PwC study, the important driver for the music industry over the

coming years, will be digital music, and its share is expected to move from 16 per

cent in 2008 to 60 per cent in 2013. Also, within digital music, mobile music is

expected to continue to increase its share and maintain dominance.

Radio

The cheapest and oldest form of entertainment, reaching 99 per cent of the

population, this segment is likely to see many dynamic changes.

According to a PwC study, the radio industry is forecast to grow at a compound

annual growth rate (CAGR) of 18 per cent over 2009 -13, reaching US$ 391.15

million in 2013 from the present US$ 170.87 million in 2008. That's more than double

its present size. In terms of its share of the advertising pie, it is projected that th e

radio advertising industry will be able to increase its share from 3.8 per cent to 5.2

per cent between 2009 and 2013.

The government earned US$ 11.05 million from private radio channels during 2008 -

09.


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Advertising

The number of brands advertised on television witnessed an 82 per cent increase

during 2008 compared to 1999, according to a survey by AdEx India, a division of

Tam Media Research.

The television advertising industry is expected to reach US$ 3.12 billion in 2013 from

the estimated size of US$ 1.75 billion in 2008, which translates into a growth of 12.2

per cent on a cumulative basis, over the period.

Going forward, digital media advertising (internet, mobile and digital signage) is

expected to emerge as the medium of choice for advertisers. According to a FICCI-

PwC report, online advertising is expected to touch US$ 212.03 million in 2011.

Digital advertising on newspaper web sites will increase at a 6.8 percent compound

annual rate to US$ 8.3 billion in 2013 from US$ 6 billion in 2008, inc reasing its share

of total newspaper advertising to 9.1 per cent from 5.4 per cent in 2008, as per a

PwC report on the Indian media and entertainment industry.

According to a PwC report, Internet advertising is projected to expand by 32 per cent

over the next five years to reach US$ 411.74 million in 2013 from US$ 102.94 million

in 2008. Also, the share of online advertising is projected to grow from 2.3 per cent in

2008 to 5.5 per cent in 2013. The report estimates the size of the Out of home(OOH)

advertising spend to be US$308.8 million in 2008. This figure is projected to almost

double in 2013 to US$ 514.67 million.


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Entertainment Industry in India

Entertainment Industry in India comprises of Film Industry and Television Industry.

The Indian entertainment industry is among the fastest growing sectors in the

country. In the past two decades entertainment industry in India has witnessed

explosive growth. In television alone, from a single state owned television network,

Doordarshan in 1991, today there are over 300 national, regional and local channels

being beamed across the country. Indian film industry is the largest film industry in

the world, producing on an average, close to a thousand films a year in all

languages. In terms of film production India ex ceeds Hollywood's production volume

by over three times. Some of the fastest growing segments in the Indian

entertainment industry include music, cable and satellite television, animation and

FM.

According to an estimate by FICCI and Ernst and Young India n entertainment

industry would worth more than Rs. 400,000 million in 2008. Several positive

developments like the accordance of the 'industry' status to the film industry, satellite

channel penetration, the retail boom in the channels for music sales (Mus ic World &

Planet M), the use of digital technology in all spheres of entertainment and the

growth of multiplexes have contributed to the growth of this sector.

Entertainment industry in India is presently in a consolidation phase as boundary

lines between films, music and television are fast disappearing. Skills and resources

are being pooled extensively. Besides adaptation to high -end digital technology, the


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entertainment industry is also witnessing rapid development of state -of-the-art

studios and post production facilities.

In terms of employment, an estimated 6 million people earn their livelihood from the

entertainment industry and this number is all set to grow. Entertainment industry in

India is projected to be one of the major economic driving forces of the country. In

India, television is the major segment of entertainment industry. Presently, India has

the third largest television market in the world behind only china and the USA.

Today, television reaches about hundred million Indian households. India has the

world's biggest movie industry in terms of the number of movies produced. Presently,

the technology of film-making in India is perhaps the best among all developing

countries. Indian film industry is now increasingly getting professional and a lot of

production houses such as Yash Raj Productions, Dharma Productions, Mukta Arts

etc. are now working on corporate lines.

The popularity of Indian entertainment industry goes well beyond the geographical

frontiers of the country. Indian television channels and films are viewed and enjoyed

across the entire South Asia. Across the Middle East, parts of South East Asia and

Africa, large expatriate populations ensure that Indian TV channels and films are a

regular part of their entertainment bouquet. In UK and North America (USA and

Canada), Indian TV channels and films are increasingly finding a foothold beyond

the expatriate pockets as the audience there has started to enjoy and identify with

the contemporary Indian culture. Quite a few of Indian filmstars are also getting good

offers from Hollywood.


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The future prospects of Indian entertainment industry look to be extr emely good. As

India's profile rises on the global stage outside interest in India's culture and

entertainment industry is also bound to grow.

Note: The above information was last updated on 21-07-2007 Indian entertainment

industry Focus 2010

On Radio

Radio is a mass medium and therefore ideally suited for India - leveraging its twin

advantages of wide coverage and cost effectiveness. It is dominated by the state

owned All India Radio (AIR), which covers 91 percent of India's area and reaches 99

percent of the population, through a wide network of broadcasting centres and

transmitters. Apart from AIR, there are 21 privately-owned FM stations in 12 major

cities, all of whom have been granted licences over the past 3 -4 years. Advertising is

the sole source of revenue for radio in India. Currently, the sector generates annual

revenues of INR 2.2 billion and is growing at around 20 percent annually. This

implies a marginal rise in radio's share in the advertising pie to around 1.9 percent.

Given that commercialisation of radio is still in a nascent stage in India, this growth

rate is far from flattering.

As a result of unsustainably high licence fees, the sector has been reeling under

heavy losses. A few FM stations have been forced to shut down, as they could not

afford to pay the annual license fees, set at levels significantly above their earning

capacity. If one considers the private sector FM market in Mumbai, four players


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cumulatively generate annual revenues around INR 250-300 million, against total

operating costs of around INR 550-600 million.

Given that a significant portion of the operating costs is the licence fee, which is set

to increase at 15 percent per annum, revenues would need to grow at over 40

percent annually to break even in the next three years.

Globally, radio is enjoying a renaissance based on the support of the youth. They

seem to prefer it since, unlike television, it is more compatible with their lifestyle.

Research trends in Australia indicate that radio enjoys a higher level of popu larity

among the 15-29 age group.

Today's busy teenagers love radio because it complements a faster -paced lifestyle -

they can listen to music and get information on the move. Younger audiences,

particularly those below the age of 25, also have access to new technology like

mobile phones. They have taken very quickly to interacting with their favourite radio

stations and RJs via email and SMS for song requests and competitions.

The Indian potential

India has an estimated 180 million radio sets, reaching o ver 99 percent of its one

billion inhabitants - a clear indication of the vast commercial potential in India for this

medium.

Plainly, the radio sector cannot and should not be satisfied with a growth rate in the

low 20s.


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In India too, it is the younger generation that is the key target audience vis--vis

radio. While consumption in India is still largely at home, 'the radio on the move'

trend is catching on in urban and semi -urban areas. The easy availability of FM radio

sets at affordable price points (ranging from INR 40-INR 150) is fuelling its mass

penetration.

According to market research, in Mumbai and Delhi, FM penetration is the highest in

the SEC A segment and least in SEC D. Further, 70 percent of radio listeners in

these cities listen to FM radio all seven days of the week. However, this sector has

not been able to monetise its hold on the listeners eardrums. In spite of such

attractive statistics, in terms of its advertising spend, radio remains a laggard. It has

less than 2 percent share of the total advertising pie in India, compared to a global

average of 8 percent. In the US, radio has a 13 percent share, in Spain 9 percent

and closer to home, in Sri Lanka, radio has a 21 percent share of the advertising

spend. Universally, media categories in the growth stage have a share of around 5

per cent and mature categories average around 10-12 percent of the total

advertising expenditure across various media. We estimate that if its real potential is

unlocked in India, commercial radio could account for approximately 8 percent of

media spends in the short to medium term and up to 10 -12 percent in the long term.

Bridging the gap

Due to the public-broadcaster nature of AIR and its socio-economic rather than a

commercial focus, its ad revenues are expected to grow at a moderate pace. Since


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the private FM channels need to survive in a commercial and competitive

environment, they have focussed on mass entertainment to gather listeners. Hence,

it is expected that the private FM channels will drive the f uture growth of the sector.

To exploit the true potential of this sector, FM radio needs to grow from the current

21 stations in 12 cities to at least 300 stations in 100 cities. At an investment of INR

40 million per radio station frequency, the total add itional investment required will be

INR 11 billion. In its current form and structure, the radio industry will not be able to

attract the necessary funding.

TRAI, the designated regulatory body for radio, has proposed a transition from the

existing license fee regime to a revenue sharing one, to help the radio industry curb

it losses. It is hoped that clarity on revenue-sharing emerges, soon. The industry, on

its part, needs to develop strategies to expand across the country and enhance

business performance, thereby turning India's promise into reality. In other words,

the challenge confronting radio is to bridge the gap between the current growth trend

and potential growth expectations.

Local mantra

The sales and marketing efforts of the major FM radio stations have focussed on the

large advertising clients. This may be partly attributed to the FMCG -marketing

background of some of the managers and partly due to the sales strategy of the

multi-media groups that own most radio stations. However, radio is a u nique medium

and the focus on large advertisers seems to be at the cost of its largest potential

benefactor - the local retailer. The retail segment globally constitutes a large part of

radio's clients and sales, but currently in India accounts for a small portion of the


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radio revenue pie. For example, in USA, 70 percent of all radio revenues come from

local retailers, and only 30 percent comes from either national or international

advertisers or from the network of advertisers. In contrast, in India, retai l comprises

only 8 percent of radio advertising.

Radio, by its very nature, is a localised medium, due to its ability to transmit a

particular message over a small geographical area. The retailer, with city/

localityspecific target groups, can be a major beneficiary of radio advertising. Clearly,

there is a need to unlock the advertising potential in the retail segment. Radio

stations offer high frequency opportunity to hear for the advertiser. International

research indicates that radio has 60 percent of televisions effectiveness at

increasing campaign awareness amongst an audience of 16 -44 year old radio

listeners. However, advertising on radio costs just 15 percent that of television.

While the price relativity for other audiences will vary, the ach ievement of 60 percent

of the result at 15 percent of the cost makes radio significantly more cost effective

than television.

The price differential between radio and television will vary depending on the area

and the audience. In India, where the cost of television advertising is more than

seven times that of radio advertising, the cost effectiveness of radio advertising will

be even more acute, which can be a great proposition for local retailers. A high

frequency combined with a moderate card rate (effective rates average between INR

500 to INR 900 per 10 seconds) provides an opportunity for retail players to promote


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their products and services cost effectively without fragmentation as in the case of

national or even regional media.

Presently, the advertiser base of FM radio is highly skewed, with around 11 percent

of advertisers contributing 60 percent of their revenues. This should not be the case

in a localised, mass-medium like radio. Ideally, the advertiser base should be broad -

based with a large number of local advertisers promoting their products. While some

radio stations are waking up to this reality, this potential is largely untapped. It is

important for the radio stations to highlight the effectiveness of using radio for local

level promotions and region specific ad campaigns. Moreover, since many FM

players are associated with larger, vertically integrated media corporations, cross

media promotions could be an added incentive for the potential advertiser.

Creation of value packs

Most of the programming currently being aired, whether music or not, has little or no

library value. Very little programming is developed to create any strategic intellectual

property. Creating specific IP whether in the form of RJs, programme formats or

around content areas could have the dual advantage of being re -usable in the future

and being syndicated across other channels. Interactivity is a major content driver

within the radio programming strategy.

However, if the topics discussed are not affected by the 'recency' factor, there is

enough potential to create a library of recordings that can be used beyond a single

show. Such content, when re-broadcast, saves the cost of producing new content


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and generates newer revenues by offering brand association with such a property at

reasonably low rates. Besides, such content can be exported for broadcast in other

countries where the demand for Indian content is considerable. Creation of a good

software library can become a source of competitive advantage for a radio player.

Niche programming

Internationally, content specialisation has been a distinct trend in the evolution of

radio, especially FM radio. Radio stations have traditionally grown by attracting

specialised audiences. These stations address specific audiences based on

geographic, socio-economic or ethnic or combination of factors, like a radio station

that caters to the African-American population of New York or a Malayalam channel

with Indian content for expatriate Indians in the Middle-East. Being localised, these

channels also meet the demands of local advertisers.

Initially, most radio stations in India started off with a defined niche as well. Between

them, they provided the listener with a choice of English, Hindi and mixed content.

However, the pressure to sell airtime forced them to resort to the lowest common

denominator - Hindi film music. Very few have held on to the English format or even

non-film content. Channels that started out with English programming as a key

differentiator have drastically reduced the total airtime dedicated to it. Since there is

very little to differentiate between the various channels, the resultant effect is

constant channel swapping by listeners. Radio stations have not been able to

generate any significant channel loyalty. In fact, a closer look reveals that even

programme loyalty does not exist, with listeners simply switching from song to song.


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This me-too approach towards content has a direct implication on the marketing of

the radio channels as any message or campaign carried by it runs the risk of being

lost in the clutter. Hence, there is an urgent need to evolve programming towards

differentiated content.

It may also require a shift from mass marketing of the radio channels to marketing

programmes targeted at specific market segments. Validation of niche audiences

would enable differentiated client targeting with unique value propositions. With

limited sponsored market research done in this area, radio stations find it difficult to

market their USP.

However, these radio stations need not look beyond their walls to get valuable

listener data. The innumerable contests and interactive sessions on air bring in close

to 30,000 callers every day for a single channel in a city like Mumbai - a valuable

database that is currently under leveraged. Radio stations will need to start finding

their own niche. Channels that address specialist listener groups need to emerge.

Manpower

The most conspicuous item on the expense list is 'salaries'. The salary structure in

radio is comparable to that of other larger media units. This is driven by the fact that

radio stations hire people from high wage industries like television, FMCG marketing

or advertising. This has led to the creation of a people -cost structure that is

incompatible with the current size and revenue earning capacity of the radio industry.


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While it is necessary to incur reasonable manpower costs in order to stay

competitive and attract the best talent, innovative cost management solutions such

as the right mix between live and recorded music could reduce production and salary

costs.

Branding

Branding plays an important role in establishing a strong channel and programme

association amongst listeners. The key word is 'association'. What the listener

associates with is the quality of content. Brands that have spent more on marketing

have a higher recall, but that does not necessarily translate into higher listenership,

particularly in a market where lack of niche programming has resulted in constant

surfing for songs of choice. Some private FM stations have incurred large costs on

building merely 'Top of Mind Recall' for all listeners, irrespective of their preference

or affinity to the station. But as the market matures and niche channels develop with

defined target groups and unique value propositions, branding exercises will become

more meaningful. Channel brands and programmes will be associated with niche

content and specific listener profiles that can be sold to potential advertisers.

There is no doubt about the effectiveness of radio when it comes to building brands

for its clients. For example, brands like Binaca / Cibaca and Bournvita were built on

radio. These programmes rode on extremely successful content formats. Branding is

expensive and therefore, radio stations with limited budgets need to make a choice

between channel branding and programme branding. What could work better for

them would be a combination of two. Programmes that are aligned to channel


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positioning can ride on the channel branding, while other programmes should

develop their individual brands, without diluting the channel positioning.

Conclusion

India's radio industry has a strong growth potential if mechanisms and policies are

put in place to provide it with appropriate support. India, with its diverse regional

influences, is in a prime position to take advantage of the growth potential of this

segment. With privatisation gathering momentum, the increased number of private

radio channels across the country is likely to transform commercial radio from an

urban phenomenon to a national one, as has been the case with satellite television.

The Film Industry in India: An India One Stop synopsis

India has the world's biggest movie industry in terms of the number of movies

produced (around 800 movies annually). It is a great sector for foreign

investment by corporatized entertainment companies. Though risks are high on

a per-movie basis, the risk spreads out across a number of films. However, the

domestic film-making industry, despite its prolificacy, is yet to acquire the

character of professionalism on a large scale.

BRIEF HISTORY OF INDIAN MOVIE INDUSTRY

Motion pictures came to India in 1896, when the Lumire Brothers'

Chinematographe unveiled six soundless short films in Bombay (now Mumbai).


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This was just one year after the Lumire brothers (inventors of cinematography)

had set up their company in Paris.

The first Indian on record to make a movie was Harishchandra Sakharam

Bhatvadekar (nickname: Save Dada). He made one short film on a wrestling

match at the Hanging Gardens in Bombay, and another on the playfulness of

monkeys. Both these shorts were made in 1897 and were publicly exhibited for

the first time in 1899 using Edison's projecting kinetoscope inside a tent which

the film maker had himself erected.

India's first feature film named "King Harishchandra" was released in 1913.

It was made by Dhundiraj Govind Phalke (nickname: Dadasaheb Phalke, 1817 -

1944). This was a silent movie. By 1920, film making had taken the shape of an

industry.

The first talkie made in India was "Alam Ara" (produced by Imperial Film

Company) released in 1931.

Until the 1960s, film-making companies, many of whom owned studios,

dominated the film industry. Artistes and technicians were either their

employees or were contracted on long-term basis. Since the 1960s, however,

most performers went the freelance way, resulting in the star system and huge

escalations in film production costs. Financing deals in the industry also started

becoming murkier and murkier since then. CURRENT AFFAIRS India has the

world's biggest movie industry in terms of the number of movies produced


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(around 800 movies annually, mostly in the Hindi language. Tamil, Telegu,

Bengali and Malayalam are the languages in which most of the non-Hindi films

are made).

Today, the technology of film-making in India is perhaps the best among all

developing countries though the films themselves remain mostly repetitive in

storyline and content.

Superior movies, in thematic and creative terms, are made in many developing

countries with less sophisticated technologies.

According to unofficial estimates available in January 2001, the Indian film

industry has an annual turnover of Rs. 60 billion (approximately US$1.33

billion). It employs more than 6 million people, most of whom are contract

workers as opposed to regular employees.

The above statistics cannot however be used to calculate the movie industry's

share in the GDP or employment generation. This is because a vast proportion of

the turnover takes place outside the legal economy.

Though Indias overall entertainment industry is taking on professional colours

(with the rise of TV production companies), India's movie industry per se

remains highly informal, personality-oriented and family-dominated.

Until the late 1990s, it was not even recognised as an industry. Even though it

has since been recognised as an industry, banks and other financial institutions

continue to avoid the industry due to the enormous risks involved in the

business. Two banks, Canara Bank and Indian Bank, have reportedly lost heavily


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by financing films. However, the prospects of bank financing and risk insurance

are becoming brighter, albeit at a slow rate (as explained further down this

report).

As a result, the financing of films in India often remains shrouded in mystery.

Surprisingly, however, the oft -murky world of film industrys finances has not

tainted the film industrys perception in the general public eye or in the

governments attitude. Even though many famous people from the movie

industry have risen to positions of political and social responsibility, including

seats in federal and state parliaments, none of them have cared to reveal or

have been under pressure to reveal the truth about the industry's finances.

Some developments in the years 2000 and 2001 including the arrest of a

leading financier, Bharat Shah for his alleged links with a fugitive gangster

have not yet brought to public knowledge the inside economics of the industry.

The rot or financial amorality of India's film industry seems to have set in since

the 1960s. Until the 1960s, film producers would get loans from film distributors

against a minimum guarantee: this meant that the distributors had to ensure

that the film was screened in cinemas for a fixed minimum period. If this

minimum guarantee was fulfilled, the producers had no further liability. Profit or

loss would be the destiny of the distributors.

(There are exceptions, however. India's most celebrated film -maker, the late

Satyajit Ray, is known to have pawned his wife's jewellery to part-finance his

first film).


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Star System: The financing pattern, centred on distributors, is suspected to have

changed since the 1960s when the studio system collapsed and 'freelance'

performers emerged. This gave rise to the 'star system' in which actors and

actresses ceased to have long-term contractual obligations towards any studio or

film production firm (such as the now defunct Bombay Talkies, New Theatres and

Prabhat Studios). Rather, they began to operate as freelancers commanding fees

in proportion to the box office performance of their recent films. This increased

costs of film production since the more successful actors and actresses hogged

major proportions of the producers' budget.

In the changed system, distributors would pay 50 per cent of the film-making

cost leaving it to the producer to get the rest from other sources.

The 'other' sources are:

conventional moneylenders (who lend at an interest rate of 36 -40 per cent

annually);

non-conventional but corporate resources,

promissory note system (locally called 'hundi' system): this is the most widely

prevalent source, and

underworld money: about 5 per cent of the movies are suspected to be

financed by these sources.

Film production thus became a risky business and the relationship with usurious

moneylenders strengthened over the years.

As at the start of 2001, a reasonable budget film in Hindi could cost US$1.75

million. A low budget Hindi film can be made for even as low as Rs. 15 million.


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A big budget Hindi movie can cost in excess of US$30 million. The 'bigness' of

the budget is attributable mainly to the high fees paid to 'stars' , celebrated

music directors, high-end technologies and expensive travel costs to shoot in

exotic locations worldwide.

At the time of writing, it is believed that 'stars' like Shah Rukh Khan and Salman

Khan are paid Rs. 20 million (US$440,000) per film. In contrast, script writers

and film editors remain poorly paid. In an interview, India's so-called 'superstar'

Amitabh Bachchan (whose wax statue stands at Madam Tussaud's in London)

attributed the lack of strong storylines to the poor money paid to writers.

India has a National Film Development Corporation (NFDC) which finances some

films. A few film makers, who would find it hard to obtain finance from the

regular sources, have been financed by the NFDC. However, NFDC cannot be

considered to play a central role in the film industry because it finances too few

films which, too, are not of the type that has made the Indian film industry so

vibrant. It however goes to the NFDC's credit that, without it, some of India's

best film makers wouldn't have got a break in the industry.

Another shortcoming with the NFDC is that it funds films only at the production

stage while ignoring the just-as-important marketing stage.

The film industry is currently losing unestimated volumes of revenue due to

competition from local cable operators who illegally beam newly released movies

into the drawing rooms of their subscribers.


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FUTURE

This is not intended to be a scare story, however. As mentioned above, the

overall entertainment industry in India is taking on professional colours and this

will change the culture of the film industry too. Some film production companies,

such as Mukta Arts, have made public share issues, thus keeping out of the

world of murky financing.

The Film Federation of India is actively s eeking to make film financing a viable

proposition for banks. It is likely that films would also be insured to offset

possible losses for banks.

The granting of industry status to the film industry will eventually allow

overboard financing of films, though this will result in production of fewer films

than at present.

Stricter enforcement of copyright law will help the film industry in its fight with

cable operators.

Foreign entertainment companies, with steady revenue streams, can do good

business if they invest in Hindi and other Indian language films. Despite high

risks on a per-movie basis, the risk spreads out across a number of movies.

CONTINUOUS ASSESSMENT FILE - satyam

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