Value of the Indian film industry – additional information
India is home to a multi-million dollar film industry. It is the world’s largest producer of films, ahead of Hollywood and its value can be calculated in a number of ways. The return on investment a film generates is calculated by the number of times a movie earned over its production and marketing cost. In India ‘Aashiqui 2’ a romantic musical drama released in 2013 as a sequel to the 1990 musical ‘Aashiqui’, generated 612 percent of the original cost of the movie. This staggering amount of return on investment ranked ‘Aashiqui 2’ top of the leading movies produced in India in 2013 by return on investment. Another film which performed well in 2013 was the romantic comedy ‘Yeh Jawanni Hai Deewani’ which generated 322 percent of the original cost.
Domestic box office is another way of measuring a film industry’s performance. Back in 2009, the domestic box office revenue in India amounted to 65.8 billion rupees. It has been estimated that by 2018 this revenue will have by almost grown to a staggering 160.2 billion rupees.
Advertisers in India are aware of the industry’s popularity with audiences and have invested heavily in cinema based advertising. In 2006, cinema advertising spending in India amounted to 17 million U.S. dollars. It is a medium that advertisers are expected to continue with so that by 2015 cinema advertising spending will reach an estimated 43 million U.S. dollars.