venkatesh roddam, executive director, vensat - hollywood and bollywood gets engaged tiecon october...

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


Pre-Production

Locations

Animation Risk Management

Co-production


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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]

venkatesh roddam, executive director, vensat - hollywood and bollywood gets engaged tiecon october...

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