Indians love to watch movies and advancements in technology are helping the Indian film industry in all spheres-film production, film exhibition and marketing. The industry is increasingly getting more corporatised. Several film production, distribution and exhibition houses are coming up with public issues and more theatres across the country are getting upgraded to multiplexes. Top movie grossers like Dhoom 2, Krrish, Lage Raho Munnabhai have kept the industry on a high growth trajectory.
According to the Pitch-Madison Media AdOutlook 2007, in 2006, ad revenues in Cinema shot up to Rs 55 crore in 2006 from Rs 32 crore the previous year, cornering 0.4 per cent of the total ad pie and registering the highest growth rate among all categories at 70.8 per cent over the previous year. Total ad revenues has almost tripled and percentage spends have doubled in cinema since 2003, with percentage growth galloping over the same period.
The year 2006 was the year when records tumbled practically every month. With the number of multicrore grossers making a splash at the box office at a consistent pace, it was a year when some serious calculations went into re-looking at the list of All Time Top Earners in Bollywood. Sitting pretty at top was Dhoom 2 followed by Lage Raho Munnabhai and Gadar-Ek Prem Katha. At the No. 4 and No. 5 slot were Krrish and Hum Apke Hain Kaun. Other films which also did well last year were Fanaa , Rang De Basanti and Don.
India continued to remain the world’s biggest movie industry churning out over 1,000 movies a year. Multiplexes are mushrooming in cities and towns. Film exhibition companies like Shringar Cinemas, PVR, Inox, UTV Software Commun- ications, Saregama India and GV Films have gone public and have raised millions from the capital market.
Further, the influx of multiplexes is providing a tremendous boost to the domestic box office market. Though the number of multiplexes screens is estimated to be only about 350 as of now, (as compared to the 12,000 single screen theatres in India) in view of the aggressive growth plan by film exhibition companies, the number of multiplexes and the number of screens is slated to rise significantly.
Increased corporatisation has also given the Indian film companies confidence to look overseas for co-production. Percept Picture Company joined hands with Further Films, Adlabs earlier tied up with Hyperion, Saregama with Rapture Productions, and iDream production has opened offices in United Kingdom.
These trends have helped cinema ad size to grow. Better content, marketing and better venues for screening have surely helped the cinema industry to draw the attention of the advertisers.