Wednesday, April 19, 2017

Bollywood Revenue in Sharp Decline: Down 12% in 2016

Bollywood movie revenue suffered 12% drop in 2016 to $338 million, the sharpest decline ever, according to Reuters news agency. Meanwhile, the global movie revenue rose just 1% to a record $38.6 billion last year, according to a report by Motion Pictures Association of America.

Box office sales hit a record $11.4 billion in the United States and Canada, up 2% from 2015, thanks to blockbusters such as “Rogue One: A Star Wars Story,” “The Secret Life of Pets,” and “Captain America: Civil War”, according to a report in Los Angeles Times.

By contrast, the Bollywood revenue, a tiny fraction of the global film market,  has been in decline since 2014. It fell from $413 million in 2014 to $385 million in 2015 to $338 million in 2016, down 6.7% from 2014 to 2015 and then again dropping 12% from 2015 to 216.

While Bollywood business is in sharp decline, the Pakistani cinema, though small, is growing very rapidly with the explosive growth of multiplex theater screens. Pakistan's "The News Sunday" estimates that box office receipts in the country jumped 28 per cent in 2015 as compared to 2014 and this figure is only expected to grow in coming years.

Here's how Indian media and entertainment analyst Akar Patel describes Bollywood's business opportunity in Pakistan:

"In Pakistan, there is a big market for Indian movies in their multiplexes. For decades this revenue was lost to Bollywood because the movies were pirated. Under former president Pervez Musharraf, the official screening of movies was allowed, benefiting both nations. Today all Bollywood movies are shown there. Unfortunately, the current state of ties between the two countries has been allowed to deteriorate so much that we should not be surprised if Musharraf's wise decision is reversed."

It can be a win-win arrangement with Pakistani artists working with their Indian counterparts in Indian movies and increasing Bollywood revenue from the growing Pakistan market that is already the second largest market for Bollywood entertainment. However, the powerful Hindu Nationalists appear to be succeeding in thwarting this partnership.

If the anti-Pakistan rhetoric and the attacks on Pakistani artists in Mumbai continue, it is very likely that Pakistan will respond by reimposing the ban on showing of Indian films in a rapidly expanding market market for Bollywood entertainment. In addition to increasing estrangement between the two neighbors, stopping cooperation and collaboration will be a significant blow for the entertainment industries in both India and Pakistan.

Related Links:

Haq's Musings

Bollywood Eyes Pakistan Market

Peepli Live Destroys Indian Myths

Bollywood-Hollywood Combos

Indian Bollywood Seeks Cultural Dominance

US Mortgage Fraud Funded Bollywood Movie

6 comments:

Star said...

All over the world Indians keep saying that bollywood produces more movies than any other country. Yet they fail to realise that their global share of film revenue is negligible. The best movie in recent times Indians say bollywood has produced is PK. But very few people know that its a poorly copied version of an Eddie Murphy movie Holy Man with some Indian masala. So stop this BS about bollywood is important for Pakistani cinema industry. I hope people of this great country move on from Indian idiotic crap that they call movies and develop their own material and in the time being start enjoying the original content bollywood copies from called HOLLYWOOD.

Majumdar said...

Brof sb,

There is one more piece of good news about India which seems to have escaped your notice. Kindly read this and present a piece about this on your musings or on PDF. Here it is:

http://timesofindia.indiatimes.com/india/india-too-poor-to-expand-snapchat/articleshow/58201636.cms

NEW DELHI: Snapchat CEO Evan Spiegel said India is too poor a country to expand its business to, a former employee of the company has alleged in a lawsuit.

The former employee, Anthony Pompliano, alleges that the comment was made in a 2015 meeting discussing user growth, where Spiegel reportedly said, "This app is only for rich people. I don't want to expand into poor countries like India and Spain."

Variety magazine reported the comment earlier this week, when Pompliano's allegations were made public.


Regards

Anonymous said...

http://businessworld.in/article/Automakers-Toeing-Make-In-India-Initiative-With-Robust-Exports/19-04-2017-116657/

Anonymous said...

Star

Pls be informed that Bollywood is not the only industry in India. There are at least 3 other film industry of India, namely Telugu, Tamil and Malayalam which are big. Telugu and Tamil are both $250 million dollar industry, despite being restricted to mainly only one state.

In my stay at UAE, I can assure you that Pakistanis are as obsessed about Bollywood as Indians are. For the record I am a south indian and couldn't care less for bollywood.

Omar F. said...

Sir the last year didn't include the biggest hit Dangal, with its domestic business it will touch 400M$.

Riaz Haq said...

Omar: "Sir the last year didn't include the biggest hit Dangal, with its domestic business it will touch 400M$."

#Dangal released Christmas 2016. Its first week receipts were $30 m, bringing total #Bollywood revenue to $368m, down from $385m in 2015.

Here's the data on #Dangal box office as published in TOI. 2016 total about 190 crores or about $30m. #Bollywood

http://timesofindia.indiatimes.com/entertainment/hindi/bollywood/box-office/dangal-box-office-collection-will-aamir-khans-2016-film-beat-pk-to-become-highest-bollywood-grosser/articleshow/56350224.cms