2012, blockbuster year for film biz: FICCI KPMG

Digitisation has led the way to make content available across segments of the society

After several years of muted growth, 2012 was an exciting year for the Indian film industry with the audience returning to the theaters and ready to shell out more if the content is good.

The FICCI-KPMG Indian Media and Entertainment - Industry Report 2013 highlighted that India’s domestic theatrical revenues grew by 23.8% y-o-y; contributing 76% to the Rs 112.4 billion film industry. Digital distribution played a significant role in increasing the reach of the industry. The industry has begun penetrating tier II and III markets and entertaining the un-served population which resides at the bottom of the pyramid.

All this has been made possible by leveraging technology which allows for a movie watching experience at an affordable cost and in a secure environment. Indian cinema has continued to enchant the Indian audience for almost a century now and it is expected to continue its growth trajectory and be worth Rs 193.3 billion by 2017.

"Better content that appealed to all segments of the audience, wide relaeases enabled by the, now, large footprint of digital screens and smart marketing led to great domestic box office,” said Jehil Thakkar, head of media and entertainment, KPMG in India.

It is not only Hindi or English films which are contributing to the elite Rs 1 billion club. Increasing preference amongst patrons for local taste in content has seen regional cinema growing over the years. The growth of regional cinema has been led by digitization, boost of multiplexes, emergence of new talent and organized funding; along with the rise of regional channels which has also given a boost to the regional industry as it presents more opportunities for cable and satellite monetization.