venkatesh roddam, executive director, vensat - hollywood and bollywood gets engaged tiecon october...
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8/8/2019 Venkatesh Roddam, Executive Director, VenSat - Hollywood and Bollywood Gets Engaged TieCon October 16 2010
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Notes accompany this presentation. Please select Notes Page view.These materials can be reproduced only with VenSat's official approval.Such approvals may be requested via e-mail [email protected] .
Venkatesh RoddamExecutive DirectorVenSat
mailto:[email protected]:[email protected] -
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Winds of Change
Towards a Converging World
Digital Content Creation
Animation
Pre-Production Risk Management
Co-production
Locations
Funding
New Partnership Models
Human Capital Endeavour
Content
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How I perceive this industry?
M&E space globally that hasmatured as any other industry
Industry that is transformingby adopting flexible business
models
Investment Community thatfocused on IT/ ProcessRevolution is now actively
involved in M&E Space
Hollywood
Bollywood: Hindi Film Industry
Kollywood: Tamil Film Industry
Sandalwood: Kannada Film Industry
Tollywood: Telugu Film Industry
Mollywood: Malayalam film industry
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Moving towards a converging world
Winds of change are sweeping across - altering thelandscape
Differences are progressively disappearing betweenHollywood and Bollywood
Creating new opportunities for collaboration
Sony's Columbia Tristar Motion Picture Group has over 12 Bollywoodfilms lined up for distribution
Twentieth Century Fox to market and distribute Ram Gopal Varma next
three films internationally
Collaboration and synergies are benefiting bothBollywood and Hollywood
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Collaboration and Synergies
Digital Content Creation
Pre-Production
Locations
Animation Risk Management
Co-production
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Digital Content Creation
Digital content has become an integral part inHollywood films
Films (Avatar, Inception etc.) with digital special effectshave been tremendously successful
Digital content is phasing into non-tech scenes, suchas a snowfall scene (the snow is added digitally)
Bollywood is on the forefront of producing computersoftware through its highly skilled software engineersand trained IT/ Artistic talent
Creative Inputs + World-class Execution Capabilities
Bollywood becomes a major centre for digital content creation
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Computer Based Animation
Studios/ Production Houses are partnering withAnimation Studios (India-based) for Timely Deliveryand Cost-Effective Quality
Reaping rich dividends with a partnership-based
approach Hollywood Team working in sync with Bollywood Team
Model has been successful in France and Canada
Bollywood is keen to look at the new business model Development of animation software, Bollywood is not
far off
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Pre-Production Activities
Hollywood producers are getting the pre-productionactivities
Especially those involving computer simulation
Costume design, visualizing sets before building them
and simulating the movements of lead and supportingactors for a scene involving many characters in an epicfilm
Large chunks of the sets of the blockbuster film Gladiator
was made in India
An art-decorator firm in Mumbai was hired to design portions of the setsfor the spectacular Roman saga
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Risk Management
As Industry on both sides is going through a process ofstructurization and corporatization pursuant to which localbanks and other financial institutions are entering
Hollywood banks, insurance companies and completion
guarantors are collaborating with Indian counterparts tohelp them learn how to manage risk
A huge potential for Hollywood financial institutions
Film Finance, Inc., (a film completion guarantee provider) has formed a
joint venture in India for providing film completion guarantee services
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Cost-Effectiveness
Studios/ Producers/ Hollywood filmmakers are looking for ways tocontrol costs as budgets are spiralling out of control
Bollywood offers not only an overall cost-competitive structure butalso high quality talent and production facilities
Many Hollywood producers are taking advantage of moderninfrastructure, technology and other related low-cost facilities, withouthaving to compromise on quality
The cost differential prevailing between the two industries are verysubstantial
Hollywood Studio rentals are usually US$ 1500 per hour, whereas it isUS$ 4000 for an entire day and night
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Co-Production Activities
With foreign investment being permitted, filmmaking has entered intoa new phase - co-production of films with Hollywood
Currently, much discussion is in progress between both industries inorder to evaluate how they can work and complement each other
According to news reports, Crown Media Holdings is producing the
film Thief of Baghdad in India for US $30 million with a mix of Indianand international stars
Similarly, some of the big co-productions planned are those withAFMA
Also, India is in talks about being in a co-production treaty withCanada which should be concluded in the next few months
Hyperion Pictures India has produced Marigold
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Locations
The Indian sub-continent extends right from the snow-capped peaks of the Himalayas to the warm coastalregions in the South and that it even has a desert, therange of locales for film shoots covers every type of
conceivable climate A tremendous opportunity and scope
Hollywood collaborated significantly with the Japaneseand Hong Kong film industries
The recent unprecedented success of the joint productsof Hollywood and the Taiwanese film industry has "un-hidanother dragon
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Funding
Corporate and Private equity interest remains strong withnew investments
With high-profile acquisitions over the past several years,private equitys interest and influence via platform
investments continue to expand across media landscape
As private equity investors continue to assess the cyclicaland structural issues, interest in the industry permeatesfurther
Despite fund-raising lows, significant amounts ofuncommitted capital remain on tap
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New Partnership Models Value Chain
Outsourcing Model Co-Production Model Original Content Model
Companies work on
contract basis
Doesn't involve
sharing risk and
revenues
Bollywood companies
are moving up the
value chain with low
cost advantage
Companies are co-
partners to the
overseas production
houses
Either share IP along
with revenues or
partially sharing the
revenue and partially
gets fixed fee
Involves
entrepreneurial
competence to develop
a complete product
from pre-production
stage to the final
distribution
Source PWC Report
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Stereoscopy
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Thank You
Venkatesh [email protected]
Executive Director, VenSat
mailto:[email protected]:[email protected]