Overseas markets to add 15% to box office collection by ’10
WITH several Bollywood movies doing great business in NRI pockets in international markets, revenue contribution from overseas markets is set to grow exponentially. According to an AT Kearney-CII report, the share of international revenues to domestic box office is expected to become 15% by 2010. According to the study, in 2006, the domestic box office collections stood at $1.8 billion, of which 8% was contributed by international revenue. In 2010, the domestic box office collection is expected to go up to $3.7 billion, with the revenue from foreign market expected to contribute nearly 15%. AT Kearney partner Saurine Doshi said: “Around 15% would come just from overseas ticket collection. The total international revenue would be much higher and could be nearly 40%.” Mr Doshi said this is largely because several avenues have opened up for Indian production houses. “Besides box office collections (tickets sale), satellite rights and DVD rights have the potential to become big money churners,” he added. The report also points out that non-box office collection is a “robust basis for hedging the risks of production house”. Mr Doshi added that Indian producers are likely to generate more profits from non-Indian markets. So far, most of the international revenues have come from NRI pockets abroad. “I believe that would change. I believe Indian directors would be able to woo international mainstream audience. But even if the revenues come only from NRI pockets, new avenues would ensure exponential growth in revenues from abroad,” he added