The revenues of film studios keep fluctuating demonstrating the fickleness of this business. In 2023, there were four films with earnings over Rs.500 crore at the box office. It lifted the spirits of the industry struggling for footfalls into the theatres post pandemic lull and a shift towards digital.
However, in 2024, there is a tepid response with just one movie going past Rs.500 crore club so far. Even in 2023, it was the higher prices of tickets that boosted revenues rather than the increased footfalls.
The tried and tested formulae do not seem to be working. Movies do require better quality of writing and directing. A diverse bouquet of content would satisfy the audience. While studios corporatize and bring in corporate capital, they should also improve the quality of movies being produced.
Karan Johar’s Dharma Productions is a family-founded studio. A vaccine maker Adar Poonawalla made a strategic investment in this firm of Rs. 1000 crore and got 50% stake in the firm. Studios are a capital intensive businesses which require capital to make films. They also hedge their bels on streaming platforms and TV. Dharma Productions will get more autonomy and creative control. There is consolidation at the global level too. In India too, there is Reliance-Disney and PVR-Inox consolidation.
Streaming giants (Netflix and Amazon Prime) are the biggest buyers of studio-driven contest.
Hindi film industry is experiencing stress. There are no regular releases and there are declining revenues. Dharma Productions revenue halved from Rs.1000 crore plus in 2023 to Rs.500 crore plus in 2024. YRF or Yash Raj Films too had revenues Rs.1500 crore in 2023, boosted by Pathan’s release. It was a huge surge. In 2024, it may close at Rs.700-750 crores.
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