Category: Film Production

  • “Govt. doesn’t recognise the importance of cinema”: Subhash Ghai

    “Govt. doesn’t recognise the importance of cinema”: Subhash Ghai

    Born to a dentist father in Delhi, Subhash Ghai entered the film industry in 1970 after attaining his diploma from Film and Television Institute of India (FTII). The film director, producer and screenwriter, known for his works predominantly in Bollywood has given notable films like Kalicharan (1976), Karz (1980), Hero (1983), Meri Jung (1985), Karma (1986), Ram Lakhan (1989), Saudagar (1991), Khalnayak (1993), Pardes (1997), Taal (1999) and Black & White (2008).

     

    In 2006, he set up his own film institute Whistling Woods International in Mumbai. The institute trains students in filmmaking: production, direction, cinematography, acting, animation. Ghai has done brief cameos in his directorial ventures.

     

    Mukta Arts managing director Rahul Puri spoke to Ghai to know about changing times, new vertical of the business, the market scenario and much more.

     

    Excerpts:

     

    Tell us about the differences in the film industry today from when you joined? How has the influence of branding and other media (like television and digital) changed the way that the film industry is perceived now?

     

    The main difference in the film industry is that now it has become broad in terms of media, technology, and communication from what it was in 1970s. Earlier in 70s, films were the only mass media to entertain people whereas today there is a huge growth in terms of content and reach in television, radio, digital and social media, which has taken entertainment to a different level. Nowadays, branding has become ‘THE’ thing for today’s generation. A sports man, a fashion designer or a chef, everyone has turned themselves into brands and tell me who hasn’t? Film industry might be only one dimension of the entertainment world, but it still holds a major importance and impact in media.

     

    The film industry continues to be iconic yet the size and scale of the industry is comparatively smaller than many others. Is the mindspace the industry occupies today in terms of influence and marketing justified? 

     

    No. The film business is a showmanship and a business we term as ‘Showbiz’, which influences all other industries like television, digital, music, events, fashion, and festivals with a big dividend. So, if you have a look at the film business in the theaters, it is very discouraging. But on the other hand, we are also involved in other aspects of media business such as satellite rights, music, events, branding, franchising that brings more money than theater business. Henceforth, marketing has become a bigger gamble to attract initial draw towards theaters and even to other aspects of media. 

     

    Where do you see the film industry reaching in the next decade? Will this growth/change come from new content or new delivery platforms (digital/theatres/mobile)? Where is the best hedge for risk in the industry today?

     

    Film industry always survived because of its bigger frame images in cinema halls. Cinema experience is a social bonding for people, it is a collective gathering, it is an event, a festivity! It can cover many weekends if the movie is really brilliant, and to create its presence such films run in maximum theaters. And now with the changing technology and improving higher standards, we will see a drastic change in theaters with 180/360 angle big screens to draw audiences from their homes. 3D, 4D and 5D theaters, mobiles, big watches and so on, the digitisation will bring Rs 100 crore to Rs 200 crore on first day of release in theater and television screens simultaneously. Content will be improvised accordingly, and more fantasies genre will be touched upon as I firmly believe that ‘a child in a man will never die’.

     

    People talk about a new type of content coming into to Indian films. Is this a hype? Are we actually telling newer stories or is the format of our storytelling changing but the core remains the same?

     

    Content keeps developing with time. Film content will soon adapt the following and some of which are already taking place such as:

    1.     Real life issues/biopics
    2.     Super star fantasies in mainstream style treatment
    3.     Science fiction
    4.     Animation – mythology/kids fantasies

     

    India has a lot of rich content in terms of stories in its heritage; soon, maybe by 2015, it would dominate internationally with its content. Though, it is said that there are only 36 plots in human drama, Shakespeare and Mahabharta says it all.

     

     

     

    There is a trend today about remakes. Some of your own films are being remade. How do you feel about that and do you think the remake trend is causing original content to suffer?

     

    Honestly, if you ask me I think nothing is original. Art itself is an imitation of universal existence and its various versions thereafter. A film like Aurat in 1940 was made Mother India in 1957 which was remade as Dewaar in 1975. We all should look at remake as an adaptation, transformation, inspirations of same plot which touched millions of hearts and souls… and the adaptation from a different filmmaker’s perspective makes the content looks fresh. Every remake comes with new packaging as ‘old wine in a new bottle’, but only classic stories will be repeated like our epics which are evergreen.

    What is the key to being successful in the content creation business? There are so few people who are able to sustain it. What do you attribute your success to?

     

    According to me the key factors are – develop your skill for the business, do market research, have a talent for ideation and innovation! My quest is to observe life and to present current and old dishes in new plate and that is my strength.

     

    You are very active on social media platforms. What do you feel is the benefit of this media and is it really something that will revolutionise marketing of entertainment?

     

    My only personal factor in being active in social media is to connect with the people I do not know as it widens my horizon and I can express directly to them. So we talk about our work to people and take feedback from strangers too, it develops your skill to improve as well. Such open platforms are good ways to communicate.

     

    What are your hopes from the new government, both at the centre as well as in Maharashtra. The film industry, as mentioned, is iconic in brand and has a lot of brand value but this doesn’t always deliver incentives to the industry from the government. Do you think this will change?

     

    Unfortunately, the government at the center or state level has never recognised film industry what it deserves, they don’t share the vision as it can be powerful media to influence people. It’s a major device to develop a culture in children of tomorrow. With the government, it’s not only the financial issue; it’s the issue of recognition of ‘importance of cinema’ that the government needs to look into. Please study what American cinema has done to its own country and how it has influenced other major countries and India is nowhere close to it, yet. Cinema speaks about your country, culture and brings tourism and business.

     

    The government has set up a new Skills Ministry. Given your involvement with education at Whistling Woods, what do you think will be the benefit of this to the film industry?

     

    This is the first positive step taken by the new government, which brings big hope to fulfill my dream to see India to be known as the ‘Big Think Tank’, an ‘ideator’ rather than just a doer. Whistling Woods has been doing this since its inception in 2003. If you look at most of our alumni, they all are actively working towards bringing a new change in cinema and media industry.  They are doing brilliant in their respective cinema and media jobs. I only hope and wish that government should be able to recognise this soon.

  • Shemaroo’s debut Q2-2015 result on bourses: Good

    Shemaroo’s debut Q2-2015 result on bourses: Good

    BENGALURU: After its initial public offering (IPO) in September 2014, Shemaroo Entertainment has filed reasonably good results that could  improve further towards the end of fiscal 2015, if the trends shown in some of its IPO documentation continue.
     
    Note: 100,00,000 = 100 lakhs = 10 million = 1 crore
    All numbers in this report are consolidated numbers
     
     
    The company has reported a 31.7 per cent increase in Total Income from Operations (TIO) at Rs 84.96 crore in Q2-2015 from Rs 64.49 crore in Q1-2015 and 21.4 per cent increase from the Rs 69.96 crore in the corresponding quarter of last year. The company’s net consolidated profit after tax has reduced 10.4 per cent quarter on quarter to Rs 8.57 crore (10.1 per cent of TIO) from Rs 9.56 crore (14.8 per cent of TIO) in Q1-2015, but jumped 37.1 per cent from Rs 6.25 crore (8.9 per cent of TIO) in Q2-2014.
     
    For HY-2015, PAT at Rs 18.14 crore (12.1 per cent of TIO) was 73.3 per cent more than the Rs 10.47 crore (8.3 per cent of TIO) for HY-2014. For FY-2014, PAT at Rs 27.95 crore was 10.6 per cent of TIO and PAT for FY-2013 at Rs 24.58 crore was 11.4 per cent of TIO.
     
    Diluted EPS (not annualised) is lower in Q2-2015 at Rs 4.30 versus the Rs 4.82 in Q1-2015, but higher than the Rs 3.15 in Q2-2014.  For HY-2015, diluted (not annualised) EPS was Rs 9.10 and for HY-2014, it was Rs 5.25. An EPS of Rs 14.08 for FY-2014 and Rs 12.38 for FY-2013 was reported for the company during its IPO.
     
    The company’s Total Expenditure (TE) in Q2-2015 has gone up 41.4 per cent to Rs 64.91 crore (76.4 per cent of TIO) from Rs 45.89 crore (71.2 per cent of TIO) in the immediate trailing quarter and was 21.4 per cent more than the Rs 54.85 crore (78.4 per cent of TIO) in Q2-2014. For HY-2015, TE at Rs 110.8 crore (74.1 per cent of TIO) was 14.5 per cent more than the Rs 96.76 crore in HY-2014.

     

  • Disney FY-2104 op inc grows 21 per cent; Studio Entertainment segment op inc up 234 per cent

    Disney FY-2104 op inc grows 21 per cent; Studio Entertainment segment op inc up 234 per cent

    BENGALURU: The Walt Disney Company Inc (Disney) reported operating income (op inc) of $ 13,005 million (26.6 per cent of overall revenue or TIO) in the year ended 27 September 2014 (FY-2014), up 21.3 per cent from the $ 10,724 million (23.8 per cent of TIO) in FY-2013. The company’s TIO in FY-2014 at $ 48,813 million was 8.4 per cent more than the $ 45,041 million in 2013.

     

    “Our results for fiscal 2014 were the highest in the company’s history, marking our fourth consecutive year of record performance,” said Disney chairman and CEO Robert A Iger. “We’re obviously very pleased with this achievement and believe it reflects the extraordinary quality of our content and our unique ability to leverage success across the company to create significant value, as well as our focus on embracing and adapting to emerging consumer trends and technology.”

     

    Disney’s Studio Entertainment segment reported a 234.3 per cent growth in op inc in FY-2014 at $ 1,549 million (11.9 per cent of all op inc) from $ 661 million (6.2 per cent of all op inc) in FY-2013. This segment’s revenue in FY-2014 at $ 7,278 million (14.9 per cent of TIO) grew 21.7 per cent to $ 5,979 million (13.3 per cent of TIO) in the previous year.

     

    Here is what Disney has to say about Studio Entertainment numbers: 

     

    Higher operating income was driven by increases in worldwide theatrical distribution and worldwide home entertainment. Higher worldwide theatrical distribution results were due to the success of Guardians of the Galaxy and Maleficent in the current quarter compared to Monsters University and The Lone Ranger in the prior year quarter.

     

    The increase in worldwide home entertainment was due to higher unit sales, lower per unit costs and higher net effective price resulting from the success of Frozen. Other significant titles included Captain America 2: The Winter Soldier in the current quarter and Iron Man 3 in the prior-year quarter. 

     

    Let us look at the results for FY-2014 and Q4-2014 reported by Disney.

     

     Overall Revenue:

     

    In Q4-2014 (quarter ended September 27, 2014), Disney reported a 7.1 growth of TIO to $ 12,389 million from US$ 11568 million in the corresponding quarter of last fiscal, but was marginally less (0.6 per cent less) than the $ 12,466 million in Q3-2014. 

     

    Q4-2014 op inc at $ 2,775 million (22.4 per cent of TIO) in Q4-2014 was 11.7 per cent more than the $ 2,484 million (21.5 per cent of TIO) in Q4-2013, but 28.1 per cent lower than the $ 3,857 million (30.9 per cent of TIO) in Q3-2014. 

     

    Segment Revenue: 

     

    Five segments contribute to Disney’s numbers – Media Networks; Parks and resorts; Studio entertainment; Consumer products; and Interactive.

     

    Media Networks Segment:

     

    The company’s Media Network segment is the largest in terms of contribution to overall revenue (TIO) and op inc This segment consists of two sub-segments – Cable Networks and Broadcasting.

     

    In FY-2014, Disney’s Media Network segment reported revenue of $ 21,152 million (43.3 per cent of TIO), up 3.9 per cent from the $ 20,356 million (45.2 per cent of TIO) in FY-2013. Op inc from this segment rose 7.4 per cent to $ 7,321 million (56.3 per cent of overall op inc) in FY-2014 from $ 6,818 million (63.6 per cent of overall op inc) in FY-2013.

     

    Disney’s Media Network segment reported 5.5 per cent rise in revenue from $ 4,946 million (42.8 per cent of TIO)  in Q4-2013 to $ 5,217 million (42.1 per cent of TIO) in Q4-2014, but was 5.3 per cent less than $ 5,511 million (44.2 per cent of TIO) in Q3-2014. Op inc dropped marginally by 0.3 per cent from $ 1,443 million (58.1 per cent of overall op inc) in Q4-2013 to $ 1,437 million in Q4-2014, but was 37.2 per cent lower than the $ 2,296 million (59.5 per cent of overall Op Inc) in Q3-2014 (51.8 per cent of op rev).

     

    Parks and Resorts

     

    In FY-2014, this segment’s revenue at $ 15,099 million (30.9 per cent of TIO) grew 7.2 per cent from $ 14,087 million (31.3 per cent of TIO) in FY-2013. Op inc increased 20 per cent in FY-2014 to $ 2,663 million (20.5 per cent of overall op inc) from $ 2,220 million (20 per cent of overall op inc) in FY-2013.

     

    Disney’s Parks and resorts segment reported 6.6 per cent growth in y-o-y revenue to $ 3,960 million (32 per cent of TIO) in Q4-2014 from $ 3,716 million (32.1 per cent of TIO) in Q4-2013, but marginally less (0.5 per cent less) than the $ 3,980 million (31.8 per cent of overall revenue) in Q3-2014. This segment’s op inc grew 6.6 per cent to $ 687 million (24.8 per cent of overall op inc) in Q4-2014 from $ 571 million (23 per cent of overall op inc), but was 19 per cent less than the $ 848 million (22 per cent of overall op inc) in Q3-2014.

     

    Here is what Disney has to say about Parks and Resorts numbers:

     

    Operating income growth for the quarter was due to an increase at our domestic operations, partially offset by a decrease at our international operations.

     

    Higher operating income at our domestic operations was driven by increased guest spending and attendance, partially offset by higher costs and lower vacation club ownership sales. The increase in guest spending was primarily due to higher average ticket prices for theme park admissions and for sailings at our cruise line and increased food, beverage and merchandise spending. Higher costs reflected increased costs for MyMagic+ and the absence of an offset in the prior-year quarter from a property sale, partially offset by lower pension and post-retirement medical costs. Decreased vacation club ownership sales reflected the prior-year success of The Villas at Disney’s Grand Floridian Resort & Spa, for which sales commenced at the end of the third quarter of fiscal 2013.

     

    The decrease at our international operations was due to lower operating performance at Disneyland.

     

    Lower operating income at Disneyland Paris was driven by higher operating and marketing costs and lower attendance, partially offset by increased guest spending, due to higher average ticket prices, and higher real estate sales.

     

    Studio Entertainment

     

    Three sub-segments of the Studio entertainment segment contribute to Disney’s revenue – Theatrical distribution; Home entertainment; and TV/SVOD distribution and other.

     

    Annual figures for this segment have been mentioned above.

     

    Disney’s Studio entertainment segment reported 18.1 per cent jump in revenue in Q4-2014 at $ 1,778 million (14.4 per cent of TIO) from $ 1,506 million (13 per cent of TIO), but was 1.6 per cent lower than the $ 1,807 million (14.5 per cent of TIO). This segment reported more than double (2.35 times) growth in op Inc in Q4-2014 at $ 254 million (9.2 per cent of overall op inc), but was 38.2 per cent lower than the $ 411 million (10.7 per cent of overall revenue) in Q3-2014. 

     

    Consumer Products 

     

    This segment has two revenue streams – licensing and publishing (licensing); and retail and other (retail).

     

    Consumer products segment reported 12.1 per cent growth in consumer products to $ 3,985 million (8.2 per cent of TIO) in FY-2014 from $ 3,555 million (7.9 per cent of TIO) in the last year. Op inc from this segment for FY-2014 grew 21.9 per cent to $ 1,356 million (10.4 per cent of overall op inc) from $ 1,112 million (10.4 per cent of overall op inc).

     

     Disney’s Consumer products segment reported 6.8 per cent increase in revenue in Q4-2014 to $ 1,072 million (8.7 per cent of TIO) from $ 1,004 million (8.7 per cent of TIO) in Q4-2013 and 18.8 per cent more than the $ 902 million (7.2 per cent of all revenues) in Q3-2014. This segment reported 9.2 per cent hike in op inc to $ 379 million (13.7 per cent of overall op inc) from $ 347 million (14 per cent of overall revenue) in Q4-2013 and 38.8 per cent more than the $ 273 million (7.1 per cent of overall Op Inc) in Q3-2014. 

     

    Disney says that higher operating income from Consumer products was due to an increase at its Merchandise Licensing business driven by the performance of Frozen and Spider-Man merchandise partially offset by lower revenues from Monsters and Iron Man merchandise.

     

    Interactive 

     

    Disney says that Interactive revenues for the quarter (Q4-2014) decreased by $34 million to $362 million, and segment operating income increased to $18 million driven by the success of our mobile game Tsum Tsum and recognition of a minimum guarantee for a games licensing contract. These increases were partially offset by lower Disney Infinity performance due to the timing of the launch of Disney Infinity 2.0, which was launched on 23 September 2014, compared to Disney Infinity 1.0, which was launched on 18 August 2013.

     

     

    Please click here for financial results

  • Partha Thakur appointed as Essel Vision non-fiction head

    Partha Thakur appointed as Essel Vision non-fiction head

    MUMBAI: Zee Entertainment Enterprises Limited (Zeel) has announced the appointment of Partha Thakur as non-fiction programming head for Essel Vision Productions. He will take charge from 3 November.

    Zeel is looking at strengthening its content and develop different genres of production. Thakur will report to Essel Vision Productions business head Akash Chawla. With over 15 years of experience in media and entertainment, he has produced content for broadcasters such as Zee TV, Star plus, Star World, Sony Entertainment Television, Colors, MTV, Sun TV, Vijay TV, NDTV, Pogo, Disney Network, UTV and Fox Traveler.

    He has worked with Wizcraft Television, Miditech Productions, Optimystix Entertainment, Searchlight Productions and MTV India. He has worked on multiple seasons of shows such as Entertainment Ke Liye Kuch Bhi Karega, Indian Idol, Fame Gurukul, IIFA Awards, GIMA Awards, Apsara Awards, Zee Rishtey Awards, Dare to Dance, amongst others.

    Thakur has also worked on shows in South Africa, Dubai, Singapore, Malaysia, Thailand and Sri Lanka. His last assignment was at Sol Productions as the non-fiction head and creative director.

    Essel Vision’s objective is to be a one-stop shop for all film, television, digital, events and IP creation related services where it will produce, co-produce, market and distribute.

     

  • Bollywood pins hope on the new Maharashtra government

    Bollywood pins hope on the new Maharashtra government

    MUMBAI: As the new Maharashtra Chief Minister took oath to serve the state, the Film and Television Producers Guild of India has come up with a list of issues and challenges the industry currently faces. 

     

    The entertainment capital of India – Mumbai has been the centre of the Indian entertainment industry since its inception and this industry provides employment directly or indirectly to almost 5 million people in the country. However, serious implications caused by the various archaic laws and heavy burden of taxation on the Hindi film sector has stunted the growth of this industry and made several stalwarts displeased with the system, said the statement issued by the organisation.

     

    According to the Film and Television Guild of India, the high taxes imposed on the Hindi film industry in the state, like the Entertainment Tax on films, applicability of VAT on television production business and stamp duty to keep local bodies taxes out of the proposed GST, have cast a dark spell for the ‘Film Guild’.

     

    The absence of single window mechanism has resulted in systematic harassment and malpractices over the years, and has increased costs for the producers thereby significantly discouraging producers from shooting in the state. In addition to this, the lack of adequate cinema halls in the state (much lower than southern states) has hampered the growth of the film industry and directly resulted in increase in piracy and loss of revenues to the government, as well as the industry, states the guild.

     

    These issues are not only detrimental to the growth of the industry but will result in an inevitable breakdown of the entire film industry, it added.

     

    Speaking about the various concerns weighing down the sector, Film and Television Producers Guild of India president Mukesh Bhatt said, “Maharashtra has always been the home for the Hindi film industry. Sadly, we have been made to feel like an orphan in our own home state. Leave aside any support; we are penalized for making films in a language which does not belong to any other state in the country including Maharashtra. The impartial treatment given to Hindi film industry in our own state in the past is obvious when it comes to the high tax structure, archaic laws and multiple complications restricting growth of the film industry in the state.”

     

    However, showcasing hope in the new chapter of Maharashtra politics, he added, “We are confident that the new BJP government in Maharashtra will address these pending issues and help the film industry achieve newer heights.”

     

    Mumbai has been the dream city for a lot of Bollywood actors, who have carved their space in the history of cinema and in the hearts of their fans over the years. It’s time that the entertainment industry is rewarded for all these years of service to the people and required changes be made in the system, as they hinge their hope on the newly elected BJP government.

  • Viacom’s Cineshorts: Big break to Bollywood for students

    Viacom’s Cineshorts: Big break to Bollywood for students

    MUMBAI: To promote its upcoming release Mary Kom, Viacom18 announced a short film contest early last month called Cineshorts allowing aspiring filmmakers and documentary makers to submit five-minute long films on the theme ‘Against All Odds’.

     

    With cash prize worth Rs 1,00,000 for the winner and a chance to be premiered on Pepsi MTV Indies, the registrations have touched the 400 registration mark and the deadline for submission has been pushed to 30 September from  15 August.

     

    Viacom18 Motion Pictures marketing head Rudrarup Dutta said, “As a studio, it is our constant endeavor to identify and promote fresh talent in the industry. Cineshorts is an initiative that provides an exclusive opportunity for budding filmmakers. We believe this is an effective platform for us to identify new talent and nurture an ecosystem that allows fresh talent to contribute new vision and fresh ideas.”

     

    Cineshorts was held in seven cities targeting a total of 28 colleges across Ahmedabad, Mumbai, Manipal, Bangalore, Pune, Delhi/ NOIDA and Kolkata. MICA, Government Film and Television Institute, Indian Institute of Mass Media and Communication, St. Xavier’s College, Manipal Institute of Communication, Whistling Woods International School of Film-making, and Symbiosis College (BBM) were among other colleges that participated in Cineshorts.

     

    The contest will see short movies made on a number of themes. While one participant, a 22-year old BCom graduate, Raj Sampad is making a docu-fiction Dreaming With Sand,  based on the real life story of the most famous sand sculptor in India, Padma Shri Sudarsan Pattnaik, Yogendra Kumaria’s movie focuses on the common man, who has to fight against the rising expenditure and inflation every month, and finally comes out as a winner.

     

    Different participants also revealed various motivations to take part in the contest.Wwhile for some the Rs 1,00,000 cash prize was the focus, others concentrated more on the chance to showcase their work on television.

     

    A student of MGR Govt Film and Television Institute, Janardhan Chikkanna said, “As a short film maker what attracted me towards the competition is the platform to reach a wider audience, which would have been very difficult to reach on my own.”

     

    Adding to that another participant,  Narsee Monjee College graduate Devansh Doshi said, “The motivation for applying is to have professionals see your work and guide you for your future films. It also serves as a great platform for communicate with people of similar interests. Cineshorts has helped me to bring forward my film to a lot of people who have been a part of the industry for years.”

     

    The contest, according to Dutta is solely a Viacom18 Motion Pictures initiative. Speaking on the same he added, “Cineshorts is a Viacom18 Motion Pictures registered property that we plan to nurture and cultivate on a regular basis. The start of this initiative was with Mary Kom but there will be a second season, so to speak, every six months or a year with an upcoming project on our slate. The plan is to up the ante for contestants with every edition and to release the best short film before the feature film so that we can establish the crux of the feature film as well as give the aspiring filmmaker a theatrical release reaching out to a wide audience.”

     

    The campaign is mainly targeting young, aspiring filmmakers who may otherwise not receive a competitive outlet to display their work. “The initiative caters to all Bollywood lovers who want to make it big in the industry without the crutches of family legacy or a godfather,” Dutta reckoned.

     

    Commenting on the marketing and promotion of the campaign, the marketing head revealed,” Since this concept was targeted towards youth, we advertised on platforms that they haunt daily, therefore a large investment on the digital front was the obvious choice. A teaser that said ‘Movie Banane ke Liye Talent Chahiye, Babaji ki Jooti Nahi!’ led the campaign on digital video platforms. Social media platforms like Facebook and Twitter ensured both awareness as well as engagement. Also, the association with the film Mary Kom helped in garnering attention and traction with a wide cross section of the TG.”

     

    The company also carried out on ground promotions with seminars in colleges that have it as part of their syllabi for mass media and film courses. 

  • Eros International Media and Viacom18 Motion Pictures Announce International Distribution Agreement

    Eros International Media and Viacom18 Motion Pictures Announce International Distribution Agreement

    MUMBAI: Eros  International Media  Limited (“Eros”),  a  leading global  film  company in  the India  film entertainment industry and Viacoml8  Motion Pictures, a division of Viacom 18 Media Pvt. Ltd, a joint venture operation  in India between Viacom Inc. and the Networkl8  Group,  announced today an international  distribution  agreement.   The  deal includes four-films:  Mary Kom- directed by Omung Kumar and starring Priyanka Chopra;, Gabbar- directed by Krish starring Akshay Kumar & Shruti Hassan; Golu Pappu- directed by Kabir Sadanand and starring Dimple Kapadia, Vir Das and Kunal Roy Kapoor; and Santa Banta- directed by Akashdeep Sabir and starring Boman Irani and Vir Das.

     

    Pranab Kapadia, President, Marketing and  Distribution for  Eros  International Pic said, “We  are pleased to work with Viacom18 to present these highly anticipated films to overseas audiences. With our strong international distribution network and marketing capabilities, we anticipate that these films will have successful ru/IS in overseas markets.”

     

    Ajit Andhare, COO, Viacom18 Motion Pictures  said, “Indian cinema caters to audiences not just in India, but global v.   This multi-film alliance with Eros will provide the Indian fan base abroad a chance to experience our films that are rich in content and deliver cutting-edge narratives.

     

    Mary  Kom,  the first of the films  to be distributed  internationally  under this alliance,  will  release in over 250 screens  on September 5, 2014.

  • Eros International Q1 FY15 Net Profit Jumps 22.2 per cent to Rs 358 million

    Eros International Q1 FY15 Net Profit Jumps 22.2 per cent to Rs 358 million

    MUMBAI: Eros International Media Limited (Eros International), a leading global Company in the Indian film entertainment industry, today announced its consolidated financial results for the quarter ended June 30, 2014 (Q1 FY2015).

     

    Financial Highlights:

     

    CONSOLIDATED RESULTS FOR Q1 FY2015

     

    ·         Total Income increased by 26.0% to Rs. 2,446.1 million (Rs. 1,942.1 million in Q1 FY2014)

     

    ·         EBIT increased by 29.9% to Rs. 599.3 million (Rs. 461.3 million in Q1 FY2014)

     

    ·         Profit after tax (after minority) increased by 22.2% to Rs. 358.4 million (Rs. 293.4 million in Q1 FY2014)

     

    ·         Diluted EPS stood at Rs. 3.88 (Rs. 3.19 in Q1 FY2014)

     

    Executive Comment:

     

    Eros International Media MD Sunil Lulla said, “The fiscal year commenced on a positive note led by healthy performance of our film portfolio across revenue streams along with the ongoing monetization of library films. We continue to work towards expanding our film content through a diversified approach of acquiring a mix of high, medium and low budget movies across Hindi and other regional languages.

     

    We are focused on driving our new media content distribution strategy through ErosNow and took various strategic initiatives to further strengthen the platform. The acquisition of a controlling stake in Techzone, a leading mobile value added services provider, brings on board expertise in technology and solid distribution reach of mobile digital content. Our partnership with Hathway Cable to launch a subscription based movie streaming service will enable their broadband subscribers to watch our library films from the ErosNow platform.

     

    Given our well-defined business model, unique offerings and an extensive film library, we are best positioned to leverage existing and emerging opportunities in the Indian Media and Entertainment industry.” 

     

    Highlights: 

     

    ·         9 films released during Q1 FY2015: Including 5 Hindi and 4 Tamil films as compared to 12 films during Q1 FY 2014, which included 7 Hindi, 5 Tamil and other regional language films.

     

    o    Of the total movies released during the quarter, 1 movie was high budget & 8 were medium & low budget movies. 

     

    ·         Strong financial performance: Revenues during Q1 FY2015 were primarily driven through library film monetization across multiple platforms and the release of new movies in Hindi, Tamil and other regional languages.

     

    o    The Company is witnessing growth in new platforms for monetization of catalogue movies along with increasing demand on existing platforms.

     

    o    Kochadaiiyaan, a high profile movie starring Rajinikanth, also contributed positively to overall performance through various revenues streams. In-line with the Company’s de-risking strategy, the movie registered strong pre-sales from satellite rights in multiple languages, audio and music rights exploitation, brand tie ups and others. 

     

    ·         Acquisition of Techzone: Eros International acquired a controlling stake in Techzone, a leading mobile value added services provider.

     

    o    Techzone has executed an average of 25 million SMS, WAP or IVR transactions per month over the past three years across 12 major telecom operators in India and bills the customers directly through its billing platform.

     

    o    The acquisition is in sync with Eros International’s focus on building its new media content distribution strategy through ErosNow to participate in the massive opportunity which exists in India with 870 million mobile subscribers (including over 60 million internet enabled smart phones) as of year-end 2013. 

     

    ·         ErosNow’s partnership with Hathway Cable: ErosNow, the Company’s dedicated online entertainment platform offering full length movies and music videos, launched a movie streaming service ‘Broadband Movies’, in partnership with Hathway Cable, one of the leading cable television services provider in India.

     

    o    The streaming service will enable Hathway Broadband customers to watch high quality movies from the ErosNow platform on multiple devices like smart- TVs, PCs, laptops, tablets and mobiles.

     

    o    The subscription-based service will be available to Hathway Broadband customers across India. 

     

    ·         Eros Plc follow on equity offering:  Eros Plc successfully closed a follow- on equity offering on July 15, 2014.

     

    o   The Company has received US$ 90 million as net proceeds from this offering based on the offer price of US$ 14.50 per share. 

  • Software segment leads Mukta Arts to loss in Q1-2015

    Software segment leads Mukta Arts to loss in Q1-2015

    MUMBAI: Mukta Arts reported standalone net loss of Rs 24.62 crore in the quarter ended June 2014 (Q1-2015) as against net profit of Rs 0.74 crore during the previous quarter ended June 2013 (Q1-2014) and loss of Rs 3.35 crore in the quarter ended March 2014.

     

    Q1-2015 saw the loss in the software segment of the company of Rs 25 crore. While Q4-2014 also saw a loss of Rs 2.69 crore in the segment, the segment had shown a profit in Q1-2014 of Rs 0.69 crore.

     

    As net sales of the company declined 66.89 per cent to Rs 23.09 crore in Q1-2015 as compared to Rs 69.73 crore during Q1-2014 and fell 57 per cent against Rs 53.95 crore in Q4-2014, the revenue for the software division contracted 67 per cent in Q1-2015 to Rs 16.75 crore versus Rs 51 crore in Q4-2014 and was 75 per cent lower than Rs 65.92 crore in Q1-2015.

     

    The total income from operations (net) for Q1-2015 fell 65 per cent to Rs 24.95 crore versus Rs 71.44 crore in Q1-2014 and was 56.3per cent lower than Rs 57.1 crore in Q4-2014.

     

    The company reported a 29.3 per cent fall in total expenditure to Rs 49.73 crore as against the total expenditure for Q1-2014 which was Rs 70.34 crore and 17 per cent lower than the total expenditure for Q4-2014. Mukta Arts paid Rs 23.06 crore as producers and distributors cost in Q1-2015

     

    The company reported 49 per cent increase in finance costs in Q1-2015 versus Rs 1.32 crore in Q1-2014.

     

    Click here for the financial

  • Fox: Filmed Entertainment, Cable Network shine, Television segments dull Q4 results

    Fox: Filmed Entertainment, Cable Network shine, Television segments dull Q4 results

    BENGALURU: Twenty-First Century Fox, Inc. (Fox, the company) reported financial results for the three months (Q4-2014, current quarter) and full year ended 30 June 2014 (FY-2014). While the company’s Television and Direct Broadcast Satellite Television (DBST) segments reported lower y-o-y Q4-2014 operating income before depreciation and amortization (OIBDA) in Q4-2014, its Cable Networking Programming (CNP) and Filmed Entertainment (FE) segment’s OIBDA grew. For FY-2014, all the segments reported revenue and OIBDA growth.

     

    Fox reported 16.8 per cent growth in overall revenue in Q4-2014 at $8424 million as compared to the $7212 million in Q4-2013 (quarter ended 30 June 2013 or year ago quarter). The company’s OIBDA for Q4-2014 at $1766 million was 18.7 per cent more than the $1488 million in Q4-2013.

     

    For FY-2014, the company reported 15.1 per cent growth in overall revenue to $31867 million from $27675 in FY-2013 (year ended 30 June 2013). OIBDA for FY-2014 at $6715 million was 7.3 per cent more than the $6261 in FY-2013.

     

    Let us look at the segment results reported by the company for Q4-2014 and FY-2014

     

    Cable Network Programming

     

    Fox’s CNP segment reported 13.3 per cent higher revenue in Q4-2014 at $3347 million (39.7 per cent of all revenue) as compared to the $2953 million (40.9 per cent of all revenue) reported for the year ago quarter. Q4-2014 OIBDA at $1202 million (68.1 per cent of all OIBDA) was 11.4 per cent higher than the $1079 million (72.5 per cent of all OIBDA) reported for Q4-2013.

     

    For FY-2014, CNP segment reported 12.8 per cent growth in revenue to $12273 million (38.5 per cent of all revenue) from $10881 million (39.3 per cent of all revenue). OIBDA for FY-2014 at $4407 million (65.6 per cent of all OIBDA) grew 5.5 per cent from $4177 million (66.7 per cent of all OIBDA).

     

    Fox says that this segment’s Q4-2014 OIBDA increase was driven by a 13 per cent revenue increase led by continued affiliate revenue growth. The revenue improvement was partially offset by a 14 per cent increase in expenses, approximately a third of which reflects the planned investments related to the launches of new channels, including Fox Sports 1, Star Sports and FXX, and the consolidation of the Yes Network.

     

    Full year CNP annual segment OIBDA increase was driven by a 13 per cent revenue increase led by continued affiliate revenue growth. The revenue improvement was partially offset by a 17per cent increase in expenses, almost half of which reflects the planned investments related to the launches of new channels and the impact of the consolidation of recently acquired ownership stakes in the Yes Network, ESS, Eredivisie Media & Marketing CV (EMM) and Sports Time Ohio.  

     

    The company says that segment OIBDA growth was also adversely impacted by 3 per cent from foreign exchange rate fluctuations, primarily in Latin America and India during Q4-2014 as well as FY-2014.

     

    Television

     

    Fox’s Television segment reported lower revenue as well as OIBDA for Q4-2014 as increased retransmission consent revenues were more than offset by lower advertising revenues. Quarterly advertising  revenues declined 11 per cent from the corresponding period of the prior year driven by the impact of lower general entertainment  ratings, led by declines at American Idol says the company.

     

    For Q4-2014, the Television segment reported 5.9 per cent lower revenue at $1031 million (12.2 per cent of all revenue) as compared to the $1096 million (15.2 per cent of all revenue) in Q4-2013. The segment’s Q4-2014 OIBDA at $145 million (8.2 per cent of all OIBDA) was 31.9 per cent lower than the $213 million (14.3 per cent of all OIBDA).

     

    In FY-2014, Fox’s Television segment reported 9 per cent higher revenue at $5296 million (16.6 per cent of all revenue) as compared to the $4860 million (17.6 per cent of all revenue). The segment’s OIBDA for FY-2014 at $882 million (13.1 per cent of all OIBDA) was 3.2 per cent higher than the $855 million (13.7 per cent of all OIBDA) in FY-2013.

     

    Fox says that this increase was driven by continued retransmission consent revenue growth and contributions from the broadcast of Super Bowl XLVIII partially offset by the impact of lower primetime general entertainment ratings led by declines at American Idol and X-Factor and higher programming costs. Advertising revenues increased 5 per cent from the prior year driven by the broadcast of Super Bowl XLVIII and higher rates and ratings for the National Football League and Major League Baseball playoffs, substantially offset by the impact from lower general entertainment ratings.

     

    Filmed Entertainment

     

    The Filmed Entertainment (FE) segment reported 37.7 per cent growth in revenue in Q4-2014 at $2803 million (33.3 per cent of all revenue) as compared to the $2035 million (28.2 per cent of all revenue) in Q4-2013.

     

    FE reported Q4-2014 segment OIBDA of $339 million (19.2 per cent of all OIBDA), nearly triple (2.9 times) the $117 million (7.9 per cent of all OIBDA) reported in the same period a year-ago, driven by a $768 million or 37.7 per cent revenue increase. The company says that this growth was led by several successful worldwide theatrical releases in the quarter including X-Men: Days of Future Past, which has grossed $740 million in worldwide box office to date, Rio 2, which has grossed over $90 million in worldwide box office to date, and The Fault in Our Stars, which has grossed over $260 million in worldwide box office to date. As a result of the successful releases, the company claims that the film studio became the first to cross the $3 billion mark in worldwide box office this year. Quarterly results also reflect higher contribution from the television production businesses led by the syndication of Modern Family and the delivery of a new season of 24 adds to the company.

     

    For FY-2014, FE revenue at $9679 million (30.4 per cent of all revenue) increased 12 per cent from $8642 million (31.2 per cent of all revenue) in FY-2013.Full year FE segment OIBDA of $1358 billion (20.2 per cent of all OIBDA) increased $50 million or 3.8 per cent over prior year amounts. The company says that the annual results reflect higher contributions from the television production businesses led by higher SVOD revenues, including the sale of series to Amazon, and the syndication of Modern Family. This growth was partially offset by difficult comparisons to the successful worldwide theatrical performance of Ice Age: Continental Drift in the prior year.

     

    Direct Broadcast Satellite Television (DBST)

     

    Fox’s DBST segment reported 15.5 per cent growth in Q4-2014 revenue to $1593 million (18.9 per cent of all revenue) from $1379 million (19.1 per cent of all revenue).

     

    DBST generated quarterly segment OIBDA of $146million (8.3 per cent of all OIBDA) compared with the $156 million (10.5 per cent of all OIBDA) reported in the same period a year ago.

     

    The company says that the $214 million or 15.5 per cent increase in revenue underpinned by sustained Sky Deutschland subscriber growth was more than offset by higher sports programming costs including Sky Italia’s broadcast of the FIFA World Cup and Sky Deutschland’s exclusive broadcast of Bundesliga soccer. Sky Deutschland grew net direct subscribers by approximately 82,000 during the quarter, bringing total direct subscribers to 3.81 million, while Sky Italia’s subscriber base declined by 25,000 during the quarter bringing total subscribers to 4.73 million.

     

    For FY-2014, the DBST segment’s revenue at $6030 million (18.9 per cent of all revenue) was 35.8 per cent more than the $4439 million (16 per cent of all revenue) in FY-2013. DBST generated annual segment OIBDA of $424 million (6.3 per cent of all OIBDA), a $27 million or 6.8 per cent increase over the prior year driven by higher contributions from Sky Italia resulting from cost reduction efforts. Annual segment revenues increased principally reflecting the full year consolidation of Sky Deutschland revenues versus the consolidation of six-months of Sky Deutschland revenues in the prior year. This revenue increase was offset by the full year consolidation of Sky Deutschland costs, including costs related to its exclusive broadcast of Bundesliga soccer.

     

    BskyB and other affiliates

     

    Quarterly equity earnings from affiliates were $192 million as compared to with $223 million in Q4-2013. Annual earnings from affiliates were $622 million as compared to the $655 million in FY-2014. The decreased contributions from affiliates mainly reflect lower contributions from BskyB, says the company.

     

    Commenting on the results, 21st Century Fox chairman and CEO Rupert Murdoch said: “In the fiscal fourth quarter we built on our operational momentum with double-digit earnings and revenue gains. The Company’s strong financial performance was driven by sustained affiliate revenue increases at our cable networks and record fourth quarter contributions at our filmed entertainment segment on the strength of global box office successes XMen: Days of Future Past, Rio 2 and The Fault In Our Stars. As we close the fiscal year, I continue to have confidence in our ability to execute our growth plan and drive value for our shareholders. Our new $6 billion share buyback programme, to be executed over the next 12 months, further underscores our disciplined approach to increasing shareholder value.”

     

    Click here to read the full earnings report