Though the number of films that hit the ₹100-crore mark is increasing, piracy, low penetration of quality exhibition infrastructure in Tier-II and Tier-II cities is hindering the growth of the industry. Piracy is eating away the vitals, with the film industry losing ₹19,000 crore annually.

A latest Deloitte report on the industry said that over 150 rogue sites thrive on piracy by copying the film content. For one, ‘Bahubali’ was downloaded by 1.6 million people on the day of its release.

“While Tier-I cities and metros are reaching saturation, the Tier-II and Tier-III cities lack the required infrastructure such as malls and access to low-cost power,” a Deloitte Indywood Indian Film Industry Report said.

The report was released at the Indywood Film Carnival being organised at the Ramoji Film City. “The report is a result of extensive research work on the Indian film industry,” Sohan Roy, Director of Indywood Projects, said. The report pointed out that the Indian film industry is the largest in the world in terms of number of films produced. “About 2,000 films are released every year in over 20 languages. In terms of revenue, the industry has gross box office realisations of $2.1 billion which is expected to grow to $3.7 billion by 2020 with a compounded annual growth rate of 11 per cent,” the report said.

The report also pointed out at the slow growth in the average ticket price (ATP). “The ATP went up to ₹175-200 in 2015 from ₹150-160, making a CAGR of 4 per cent.

“In order to improve performance of theatres that register an average occupancy rate of 35 per cent, ATP will have to drive towards global rates,” it felt.

The film industry is also hit by lack of access to funding across the value chain due to high tax rates and complex taxation. “The biggest cost inflation factor is employment of talent, which can charge up to 40 per cent of a film’s budget, the highest globally. Marketing of cost of films too have gone up to 30-50 per cent of a film’s budget,” the report stated.

  Bollywood, Film, India, Media