Economics of Film Industry in India PDF
Preview Economics of Film Industry in India
C-Dll' SERIES JN COMMUNICATION AND CULTURE : NO. 1 ECONOMICS OF INDIAN CINEMA , . M.A.OOMMEN K.V.JOSEPH ... OXFORD & IBH PUBLISHING CO. PVT. LTD . . New Delhi Bombay Google Original from Digitized by UNIVERSITY OF CALIFORNIA C-DIT Series General Editor: P. Govinda Pillai C> 1991 Institute ofM anagement in Government, Kera/a ISBN 81-204-0575-7 Published by Mohan Primlani for Oxford & IBH Publishing Co. Pvt. Lid., 66 Janpath, New Delhi 110001 , laser typeset by Aries Computer Bureau, 4812, East Patel Nagar, New Delhi 110008, processed and printed by Baba Barkha Nath.Printers, N 48, Kirti Nagar, New Delhi 110015. Google Original from Digitized by UNIVERSITY OF CALIFORNIA f>N1q~3 .5 I~esc,3 Jqq I MAit/ Foreword The twin concerns of the Centre for Development of Imaging Techno logy (C-DIT) are communication and related technology-both severally and in unison. The most advanced and pervasive form of communication in this late 20th century is mainly through images, sound playing a supporting role. Hence the generic phrase 'imaging technology' is relied upon to cover all the variety of electronic media such as broadcast, television, film, and video. Though there is an apparent emphasis on technology here, C-DIT's concern is not only technology i.e., the mode of communication, but also its content The essence and totality of the content of communication is culture in its widest sense. Communication and culture make the life of homo sapiens possible and progressive. The famous American Philosopher John Dewey went to the extent of assert ing: "Society exists not only by transmission, by communication, but it may fairly be said to exist in transmission, in communication" (Democ racy and Education, 1916 ). The famous Mac Bride Report of the UNESCO begins with this seminal paragraph : Communication maintains and animates life. It is also the motor and expression of social activity and civilization; it leads people and peoples from instinct to inspiration, through variegated pro cesses and systems of enquiry, command and control; it creates a common pool of ideas, strengthens the feeling of togetherness through exchange of messages and translates thought into action, reflecting _every emotion and need from the humblest tasks of human survival to supreme manifestations of creativity - or destruction. Communication integrates knowledge, organization and power and runs as a thread linking the earliest memory of man to his noblest aspirations through constant striving for a better life. As the world has advanced, the task of communication has become ever more complex and subtle - to contribute to the liberation of mankind from want, oppression and fear and to unite it in Google Original from Digitized by UNIVERSITY OF CALIFORNIA . VI Foreword community and communion, solidarity and understanding. How ever, unless some basic structural changes are introduced, the potential benefits of technological and communication develop ment will hardly be put at the disposal of the majority of mankind. (Many Voices, One World, 1980). The HOW sand WHY s of these .. structural changes" are precisely the area where the C-DIT probes, debates, learns and trains. This young autonomous post-graduate centre for studies and research of both the technology and sociology of communication and culture is sponsored by the Kerala State Film Development Corporation and the Government of Kerala State. It is affiliated to the University of Kerala and recognised by the Department of Science and Technology, Government of India. C-DIT does not accept the dichotomy of Science and Technology on the one hand and humanities on the other and consider such dichotomy harmful to the development of our society and culture. Many modem philosophers and humanists like C.P. Snow and Jacob Bronowski have warned against such a gulf getting wider and wider. Bronowski says : Every thoughtful man who hopes for the creation of a contem porary culture knows that this hinges on one central problem : to find a coherent relation between science and the humanities. In education in particular, this problem faces us in two forms. We have to give the future scientist an abiding sense of the value of literature and the arts; and at the same time we have to give to those whose pre-occupation lies with the liberal arts a glimpse of the methods, the depth, and the inspiration of science. (The Western In tel/ectual Tradition, 1960) Adopting these guidelines C-DIT' s programme of researches stud ies and training are de-signed with an integrated inter-disciplinary approach. Though the crucial importance of modem communication and media are implicitely accepted by our society and its leaders, when it comes to specific policies and priorities ambivalence is too evident. The Report of the Working Group on National Film Policy (May 1980) headed by Dr. Sivaram Karanth has made the following bitter remarks on this attitude of our policy makers, which represents in large measure the popular prejudices also : , .. One of the major factors which has impeded the growth of cinema as an art form and as a medium ofc ultural expression is that despite I Google Original from Digitized by UNIVERSITY OF CALIFORNIA .. Fornvord vn a history of about 70 years of film making, cinema in India continues to be treated almost as a sub-culture. This general attitude seems to permeate the total spectrum of Government's policies towards cinema The entertainment tax policies look at cinema as an inexhaustible source of revenue and almost equate tax on cinema to tax on betting and gambling. The regulations for construction of cinema theatres treat cinema·as something of an undesirable activity which needs to be kept at an adequate distance from the social life of the community. The policies in regard to excise and custom levies on raw stock and on film equipment contribute to making film production prohibitively expensive and thereby speculative. Efforts of the Central and State Governments to promote good cinema. despite recent awareness. remain inadequate and uncoordinated. Cinema has still to win a place as a subject of serious study in the educational curriculum on par with teaching of traditional arts. Cinema as an art form still does not have a national platform in India. This kind of schizophrenic disposition can be discerned with regard to other technological advances in communication also. Televi sion is extremely popular and the powers-that-be are exulting in its use and abuse. But at the same time we hear lamentations and apprehensions on its dangerous impact on the people in general and younger sections in particular. In spite of all ambivalence and apprehensions no one in his senses dare to call for a total retreat from these technological advances which in their totality. constitute what we call communication explosion. All these point to the urgent need of a deeper understanding of the inherent potentialities and dangers of modem media and also further research to develop indigenous technologies so that we may be self reliant in this field. Powerful countries in the world are now exercising their clout over the communication systems and media of the under developed countries. Mind-manipulators and hidden persuaders and commercial interests who have the machines and mechanism of commu nication in their grip are at work and the helpless victims of the communication explosion are in danger of losing their freedom and identity without even realising it. The C-DIT is devoted to studies and research in these areas with a view to help our people and nation to be self-reliant and also to train and educate our younger generation in handling these new forms of media. It is also our duty to enlighten and educate the people on these sophisti- Google Original from Digitized by UNIVERSITY OF CALIFORNIA ••• Foreword VUl cated gadgets and their functioning and meaning so that they could ' develop their critical responses to them and resist being made their .helpless victims and passive consumers. We are extremely grateful to the well-known economist and social scientist Dr. M.A. Oommen and his collaborator Prof. K.V. Joseph for agreeing to contribute the first volume in our series devoted to communi cation and culture. The study of the economics of film and film-making in India is a pioneering effort of immense significance. P. Pn.LAI GoVJNDA General Editor Thiruvananthapuram 695 027 C-DIT Series & 7 December 1990 Executive Director, C-DIT I Google Original from Digitized by UNIVERSITY OF CALIFORNIA Preface In a world dominated by jumbo jets. nuclear bombs, computer brain, genetic technology hyper media and the like, cinema cannot he consider ed a spectacular invention. However cinema can claim to be an epoch making invention like that of the plough. the wheel or the printing press, photography. or the steam engine. which have in i:iated economic devel opment and progress on different occasions in the long history of humanity. The invention is significant as entertainment. What was a privilege for a few throughout early history in most countries, can now be provided to the ordinary man in the vicinity of his locality and in the languages known to him. What the electronic media do in the entertain ment world is only an extension of the process initiated by cinema. In spite of the heavy investment in cinema. it has not engaged the auention of the economists. The present work is the continuation of a pioneering study meant to explore the evolution and modus operandi of cinema as an economic activity which we initiated a decade ago. This is a modified and revised presentation of that work. In preparing this volume a number of institutions and individuals helped us. Mr. P. Govinda Pillai Chainnan of Kerala State Film Devel opment Corporation. Director C-DIT. who has taken the initiative in bringing out the present volume comes foremost in this regard. We record our deep sense of appreciation and gratitude to the Corporation as well its Chainnan for all the help they have given us. We are also grateful to Mr P.K. Nair, Director. Film Archives, Pune, and the library staff under him for allowing us to make use of their library and also for familiarising us with the literature on cinema. Professor John Sankaramangalam and Mr K.V. Kurian of the Film and Television Institute of India, Pune have also been very helpful. We also record our deep sense of gratitude to Mr S. Kumar. Film Google Original from Digitized by UNIVERSITY OF CALIFORNIA Preface X Producer and ·to Mr V. Sasidharan Nair, Production Executive of Sastha Productions for enlightening us on various upeclS of cinema making. We are also thankful to the Kerala Film Chamber of Commerce, Emakularn for providing us with certain details about the cinema industry. , I IMG, Thiruvananthapuram M.A. OoMNflll K.V. JOSEPH . I I I I Google Original from Digitized by UNIVERSITY OF CALIFORNIA Contents Foreword V Preface • IX Chapter 1 • Introduction 1 • Film as an Industry 2 'Commodification' of An and Film Industry 5 Chapter 2 • TIie Development of Cinema as an Industry 11 • F.mergence of an Industry around 11 Moving Pictures The Cinema Industry in India 19 Malayalam Cinema -A Historical Review 29 The Threat of the New Media in India 41 Chapter 3 • Economic Significance of Cinema 49 • Evolution of a Market for Entertainment 49 The Structure of Market for Film 50 Consumer Expenditure on Cinema 54 Capital Investment 56 Employment in the Industry 59 Contribution to the Exchequer (j() Expon Earnings from Motion Pictures 62 Chapter 4 • Output, Cost and Profit in tbe Film Industry 67 • Detennination of Output 67 Cost-Output Relationship 73 Competition in the Film Industry 83 Chapter 5 • Cost Structure of Film Production 93 • Special Features of Film Production 93 Components of the Co$l of Production 96 Google Original from Digitized by UNIVERSITY OF CALIFORNIA .. Contents llll Chapter 6 : Marketing Structure 107 Marketing Peculiarities and Practices 107 The Organisational Structure of Distribution 110 Exhibition 113 Chapter 7 : Financing or Films 120 Patterns of Film Financing in Some 120 Western Countries Financing of Film in India 122 Institutional Finance for Film Production 126 National Film Development Corporation 128 Recycling of Box-Office Receipts 130 Some Policy Options 131 Chapter 8 : Conclusion 134 Index 139 Google Original from Digitized by UNIVERSITY OF CALIFORNIA
The list of books you might like
