Bollywood Sees beyond Stars, Looks at Budget & Derisking
Synopsis
This Case Flyer, based on the article, ‘Bollywood Sees Beyond Stars, Looks at Budget & Derisking’1, enables an engaging discussion on Bollywood’s (India’s Hindi film industry) changing business model. In the light of several big budget movies not doing well at the Box Office and quite a few small budget movies doing well, the industry has been changing its course of action. With a revenue slump of 16% in 2016 and the industry’s revenue stagnating over ₹12,000 crore over the last three years, the big studios either have stopped making movies or have repurposed themselves in the light of emerging business scenario. The other studios have taken a back seat to re-evaluate their business models. This Case Flyer helps understand Bollywood’s traditional business model and how the emerging digital platforms are helping orchestrate a new business model. It also throws light on the working of business clusters in Bollywood.
Prerequisite Conceptual Understanding
The students should read about the following from any standard textbook:
• Michael E. Porter’s five forces model
• Business Models
Before the Classroom Discussion
The film industry being of general interest to one and all, the students/participants would already be aware of the current trends in the industry. However, they should do generic online reading on Media & Entertainment industry which will help them familiarize themselves with the current state of the industry and also the prevalent jargon which in-turn will enable a more participative and effective classroom discussion.
Case Positioning and Setting
This Case Flyer can be used for either of the following:
• MBA Program – Media & Entertainment Management – To understand the broad contours of how a Bollywood movie makes money and to debate on the emerging (digital) business models
• MBA Program – Strategic Management – To understand Michael E. Porter’s Five Forces Model in the light of Bollywood’s competitive analysis
• Executive Education Program – To understand the dynamics of Media & Entertainment Industry
Preamble to this Case Flyer Analysis
This Case Flyer enables a discussion on Bollywood’s business and revenue dynamics. It helps analyze Bollywood with the help of Michael E. Porter’s Five Forces Model and understand the influence of the 5 forces on Bollywood’s business model. It also focuses on the latest developments in Bollywood and their impact on the industry’s business fortunes. The Case Flyer discussion was orchestrated accordingly [Exhibit (TN)-I]. The questions of the Case Flyer were discussed sequentially and one of the questions was discussed elaborately which formed the anchor point of discussion for the section. The classroom discussion was quite animated as it saw active participation, given the general interest in Bollywood.................
Case Analysis/Case Flyer Discussion
I. Business Dynamics and Business Clusters
The discussion in this section was focused on understanding Bollywood’s business and revenue dynamics. Based on the questions given in Section I of the Case Flyer, some of the main points that were discussed in this section were: Bollywood’s industry structure, Film-related associations, Sources of revenue for a film, Bollywood’s value chain, Bollywood’s cluster map, etc.
Bollywood and its Structure
Investopedia defines an industry as, “…a classification that refers to groups of companies that are related based on their primary business activities.”
The constituents of Bollywood are Production houses, Actors and Actresses, Directors, Music Companies, Music artists, Distributors, Exhibitors, Satellite Channels, etc. Some of the main constituents of Bollywood were discussed in the class with the help of Exhibit (TN)-II. The structure of the industry was discussed with the help of Bollywood Cluster map given later in this Teaching Plan......................
Film-related Associations in India and their Objectives
Some of the prominent film-related associations of India are Film Federation of India, Indian Motion Picture Producers’ Association (IMPPA), IFTPC.com, IFAA Association.com, The Film and Television Producers Guild of India, Film Federation of India, Federation of Film Societies of India, Children’s Film Society, Indian Film Critics Association, Indian Film and Television Directors Association............
