How Kishore Lulla, Eros' CEO, sees,India's future growth.
With 3.1 billion tickets being served by a mere 13,000 screens, accelerated growth in multiplex cinemas and rising ticket prices, the $2bn Indian film industry will become a $10bn industry within the next five years.
Although growing at 18% compound annual growth rate, the Indian film industry remains hugely fragmented all across the value chain and is poised for consolidation. The next decade will see an emergence of majors and mini-majors within the Indian film sector, and operating a vertically integrated business model will be critical to success.
Increasing production values and a greater focus on distribution and marketing mean Indian films are already crossing over in non-English-speaking markets including Europe and South-East Asia. The audience is no longer 1 billion Indians and 35 million expatriates; it is now the world.
Having a large content library providing an income stream and a large portfolio of new films every year is crucial for driving a true studio model. Companies relying on the success of one or two films a year will find it increasingly difficult to survive the consolidation phase of the Indian film industry.