Yet, there is a buzz about the Indian entertainment industry that is unmistakable. Spurred by the growth of the Indian economy, which has emerged as the fourth largest economy in terms of purchasing power parity, the Indian entertainment industry is expected to significantly benefit from this fast-paced economic growth. With the services sector booming, particularly the software and IT-enabled industry, the entertainment industry is poised to become one of the hot new sectors. Higher spending on leisure and entertainment products and changes in lifestyle by Indians is definitely a key driver for the Indian entertainment sector. Consider this: India's status as a key IT hub for outsourcing by US companies has led to an increase in employment of 20-24 year olds in the major metropolitan cities. Working as call center employees, the disposable incomes of these youngsters has risen dramatically and as a result they are spending more on books, movies, music, cell phones, food and branded clothes, according to retail consultancy KSA-Technopak. The growing affluence of the Indian Diaspora too has fuelled the growth of the Indian entertainment industry.

According to a PriceWaterhouseCoopers study titled "The Indian Entertainment Industry – An Unfolding Opportunity", the Indian entertainment industry is valued at Rs 20,000 crores (US $ 4.5 billion). It is expected to grow at a compounded rate of 18 per cent a year over the next five years to reach the Rs 45,000 crores (US $10 billion) mark by 2009. In 2004, television had a share of 65 per cent (Rs 12,870 crores), films were at 28 per cent (Rs 5,650 crores), live entertainment and music had 3 per cent shares each and radio, 1 per cent. By 2009, television will grow to almost Rs 29,502 crores, followed by films at Rs 12,926 crores. Live events will be a Rs 1600 crore industry, up from Rs 700 crores last year. The key drivers of growth for the film industry are the growth of multiplexes and digital distribution formats. Better realisation in box office collections, growth in collections from the overseas markets, emergence of the home video market are expected to drive growth of the filmed entertainment business in the next five years.

Going Global, Phir Bhi Dil Hai Hindustani

Leading Bollywood's global charge is Yashraj Films, the production house that is synonymous with candyfloss celluloid dreams that have a distinctly Westernised, but a non-resident Indian look-and-feel to them. Yashraj Films is ranked 18th among the world's top 50 production houses by a Hollywood Reporter survey. Discussions about "Brand Bollywood" going global almost always hover around how 'Indian' should Bollywood films be. Should we discard the song-and-dance routine that has been so popular with Indian audiences at home and non-resident Indian viewers abroad, and adopt a more "universal" look, style, content and theme? Karan Johar, director of movies such as Kuch Kuch Hota Hai and Kabhi Khushi Kabhi Gham - who along with a few of his colleagues like Aditya Chopra (Dilwale Dulhaniya Le Jayenge) and Sooraj Barjatya (Hum Aapke Hain Kaun) - is responsible for making Hindi blockbusters that have scaled the magic revenue figure of Rs 100 crores, asserts that "to be global, we have to be Indian". Stating that Bollywood's USP is its 'song and dance' routine and its unique masala-mix of emotions, drama and romance, Johar insists that simply aping Western/Hollywood movies would make Bollywood films me-too Hollywood products.

Currently Bollywood holds complete sway over a market of 3.5 million NRIs. In 2004, Hindi movies that targeted this segment – Veer Zaara and Swades – raked in the riches. It is estimated that 40 per cent of Veer Zaara (Yashraj Films) revenues have come in from overseas box-office collections. Main Hoon Na, featuring superstar Shah Rukh Khan, was screened in 79 theatres across the North American market and in Britain it was the seventh highest grossing film, with a highest per screen average of $15,000. Johar's Kal Ho Na Ho, released in 2003, however, remains the biggest Hindi hit internationally, grossing over $4 million on both sides of the Atlantic.

Govind Nihalani of Ardh Satya fame, whose in-your-face reality has won him great critical acclaim is of the opinion that a "different sensibility" is needed to make films for a global audience. "After all, the second and third generation NRIs are going to be 'less Indian'. Even urban Indian audiences are veering away from the traditional filmi fare of Bollywood and are demanding a diverse range of stories and styles of filmmaking," says Nihalani. "It's too early to celebrate the globalisation of Brand Bollywood." Perhaps an early indication of things to come is evident from the fact that Vidhu Vinod Chopra's runaway hit Munnabhai MBBS is being adapted into a Hollywood movie and will feature comic hero Chris Tucker as Gangster Andy. Chopra proudly declares: "I have insisted that a line be inserted in the credits 'based on an Indian movie'."

When Hollywood Comes Calling

Whether or not Bollywood can conquer the world with its song-and-dance cocktail, Hollywood seems to be taking notice of a bunch of Indian production houses that are specialising in visual effects. India's emergence as a powerhouse in the software sector has no doubt fuelled growth and interest in the still nascent Indian animation industry. "It has been astonishing for us to see how the Indian IT industry has boomed," says Colin Brown, director of visual effects for movies such as Troy, Harry Potter, Charlie the Chocolate Factory and King Arthur. "India has unleashed a giant in the IT industry and it is poised to take a leap in the visual effects market." What's more, it is already emerging as a key offshore destination for Hollywood films that are looking at producing quality visual effects at lower costs. The industry, which is estimated to be about $250 million, has grown over 20 per cent in the past year. The expected rate of growth is 30 per cent over the next five years. As of December 2004 nearly 20-30 TV programmes were under negotiation for animation work, each with a value of US $3 -3.5 million. Says Tim McGovern, Academy Award winning director of visual effects for Total Recall: "The demand for visual effects has grown worldwide. India can jump in at the deep end." Adds Barry Osborne, producer of the Lord of the Rings says: "The Lord of the Rings became a catalyst for a country like New Zealand which was not recognised for its filmmaking capabilities. The capabilities exist in India. All that India needs is a movie that can become a catalyst, become a showcase for what is possible in India."

Merging Creativity with Corporate Discipline

Can the Indian entertainment industry – and Bollywood in particular – learn some lessons from the success of the Indian IT sector? Yes, says N.R. Narayana Murthy, chairman of the board, Infosys Technologies Ltd. Mainstreaming Indian cinema into the global market calls for a global mindset and corporate discipline. Apart from global themes that have a universal appeal, Indian films need "the power of scalability", says Infosys' chief mentor. Consider this: the US produced 450 films and raked in $32 billion compared to India's 800 films earning just $1 billion in 2004. "To scale up, you need high quality human resources," says Narayana Murthy. The trend towards corporatisation of the Indian film industry is a step in the right direction and creativity of employees can be harnessed by enhancing transparency, fairness and accountability. By adopting the highest standards and ethical corporate practices, Indian production houses will be able to attract investment – both domestic and foreign – and gear up for global competition. Ultimately, it is not just creativity that will see Bollywood go global but a combination of creativity, corporatisation and ethics.