Hollywood and Bollywood would both benefit from an increased collaboration in the areas of film entertainment, education and tourism. This is what Ernst & Young conclude in the report 'Film Industry in India: New horizons' by order of the LA Film Council.
The Indian film industry is projected to grow from $3.2 billion in 2010 to $5 billion by 2014 at a CAGR of 14.1%. With close to a 1,000 films produced a year, India's filmed entertainment industry is the largest in the world coupled with its theatrical admissions at around $3 billion.
Box Office turnover
Hollywood already contributes approximately 10%-12% of the overall box-office revenue in India. Over the past years American filmmakers have gradually understood the sheer size of the Indian market and hence they are increasingly capitalizing on the market. By 2020 the average box-office revenue in India will be expected to be around 18%-20%.
Hollywood recordings in Bollywood
There has been 42% increase in the number of Hollywood movies shot in India between 2010 and 2011, and that number is expected to grow, the report said. At least five big-ticket Hollywood productions, including the next James Bond, will be shot in India, while Fox is looking at two more films.
A greater collaboration between India and US will result in increased film tourism, cultural and technological exchanges and boosting local talent, and most importantly serve as a showcase on the global stage for Indian art, culture, history and talent. "This could be the beginning of a revolution similar to the one we witnessed in the IT industry at the beginning of this millennium" said Rakesh Jariwala, partner at E&Y.