Industry Structure
I studied the impact of the structure of production house on box office collections of Hindi films.
There are primarily three categories of prominent producers in the hindi film industry
- Production houses backed by corporates. Eg. UTV, Eros International, Reliance Entertainment (Have been in the business for less than 20 years)
- Companies promoted by actors, for instance, Shah Rukh Khan's Red Chillies Entertainment.
- Traditional producers who have been in the business for generations. Eg. Dharma productions.
Impact of production house structure on first week collections (2011)
I considered data for 44 films released in 2011, from the previously mentioned three categories of production houses. An analysis of the data revealed the following information
- Corporates houses and those having been in the business for less than 20 years had average first week collections of 18.7 Crores.
- Traditional production houses had average first week collections more than Corporate houses by about 1.93 Crores.
- While the increase in average revenues for actor-backed production houses was a whopping 23.81 Crores.
Impact of production house structure on first week collections (2013)
(This study was carried out on collections data of 73 films released in 2013)
- Average first week collections for corporate houses and non-traditional producers were about 19.92 Crores.
- The increase observed over this for traditional producers and actor-backed production houses is 19.39 and 51.5 Crores respectively.
Impact of structure on first day collections (2011)
Analysis of data of those 44 films for first day collections gave the following results:
- Corporates houses and those having been in the business for less than 20 years had average first week collections of 3.8 Crores.
- Traditional production houses had average first week collections more than Corporate houses by about 0.35 Crores.
- While the increase in average revenues for actor-backed production houses was of about 4.18 Crores.
Impact of structure on first day collections (2013)
An assessment of box office collections of 73 films released in 2013, can be summarized as follows:
- The average first day collections for films released by corporate houses and non-traditional production houses was about 3.75 Crores.
- The increase observed for traditional production houses and actor-backed production houses were 4.44 and 8.88 Crores respectively.
First weekend collections (2011)
As expected the analysis of data on first weekend collections of the chosen data sample again brings to the fore the dominance of production houses owned by actors. Here are the details:
- Average first weekend collection for Corporate houses was about 12.9 Crores.
- The increase over this for traditional production houses is on average about 0.85 Crores.
- The average number for Actors’ production houses registered a huge increase of about 17.65 Crores, taking the total value to more than 30 Crores.
First weekend collections (2013)
- Average first weekend box-office collection for movies released from Corporate houses and non-traditional production houses is 12.99 Crores.
Increase over the above average value for traditional production houses is about 12.47 Crores. - For the first weekend collections in 2013, the average number for movies coming from production houses backed by actors is about 26.13 Crores.
Fastest 100 Crore Grossers
- 100 Crore in box office collections is considered a milestone for Hindi films these days.
- Out of the 25 fastest 100 Crore grossing movies in Hindi film industry, 44% (11 movies) have come from actor owned production houses.
- Nine movies (36%) have come from traditional production houses.
- Corporates get only 20 percent share of the pie, despite the entertainment sector having been granted industry status more than a decade back.
- Even out of the five films that the Corporate houses like UTV, Ashtavinayak, Eros International, Viacom 18 Motion Pictures have managed in the fastest 25, four involve collaboration with established directors like Sanjay Leela Bhansali, Anurag Basu and Omprakash Mehra.
Verdict: Actor backed production houses have emerged as clear winners in terms of box office collections. Corporate houses have not really emerged as power centres despite the sector having been granted industry status in 2001.
