September - 2001 - issue > Cover

After a visit to Bollywood in 1993, film director Baz Luhrmann wondered what would happen if he mixed Bollywood’s unabashed sentimentality, sexy dancing and loud music with a Hollywood formula. Blockbuster box-office success “Moulin Rouge” was the result.

Increased collaboration between Hollywood and the Indian Film Industry, fondly known as “Bollywood”, will result in a creation of a foreign presence in India and the export of Indian talent and movies to international markets. Renowned entertainment lawyer and author Mark Litwak remarked on show business in Hollywood: “It’s a very competitive business, only the most intelligent and hardworking are likely to succeed. For example, if you do not show up on time, it would reflect adversely on your competitiveness.” Therefore, apart from the glitz and glamour, filmmaking requires a lot of creativity, dedication and diligence. Unlike Hollywood, discipline and professionalism is lacking in the Indian film industry. Add to the lack of discipline the fact that the Indian film industry and in particular “Bollywood” is virtually devoid of corporate and legal practices.

It is highly unlikely that the Indian film industry, which has followed the same unorganized practices over the past 40 years, is going to see an overnight metamorphosis into a Hollywood-like structure. However, the Indian film industry has initiated efforts to go the corporate way, thereby resulting in change in the rules of the game. Bottom lines, deadlines, discipline and delivery schedules suddenly have become important for the production team right from stars to spot boys. In the words of Manmohan Shetty, managing director, Adlabs Films, “The move towards ‘corporatization’ will be a gradual process. Even if this increase is two-fold or three-fold it will be enough.”

Apart from the lack of discipline, Indian films cater to a parochial and therefore limited audience. Compared to Hollywood, the marketability of Indian productions until recently was confined to India. However, with the ever-growing Indian population in other parts of the world, overseas demand for Indian films is increasing at a rapid pace and the Indian film industry has become an important part of the international scene. As David Korda, president of Cappella Films Inc., put it: “Indian films got very little exposure in the United States, though with a large expat population, this is changing.” In fact, export revenues have caught up considerably with domestic revenues and are virtually equal in proportion.

First Steps
While there is a remarkable increase in the presence of Indian films overseas, the process of globalization has only just begun. It is therefore impractical to expect an immediate, quantum leap towards internationalization. There are, however, many areas of collaboration that would benefit the industries on both sides of the Pacific. Along with the cross-fertilization of ideas, talent, and culture, and the creation of areas of synergy, there will be a steady adaptation by the Indian film industry of the business and legal practices followed by Hollywood, albeit not in the immediate future, but perhaps within the next two to five years.

Several players in the Indian film industry have made or plan to make forays into the international market, thereby building a bridge between the two industries and bringing them closer. Producer and director of many Bollywood hits Yash Chopra believes making films for the international market is an entirely different ball game that requires a well-planned strategy. His future plans include setting up one of the best studios in collaboration with foreign players.

Renowned Hollywood and Bollywood director Shekhar Kapur feels the movie-going audience in Asia will be an important contributory factor to box office hits all over the world. Hollywood will therefore not only have to cater to the tastes and preferences of this large Asian market, it will also need to set up the necessary infrastructure, that is, studios, theaters, etc., conducive to the production and exhibition of such movies in the Asian region. Kapur feels this is the right time for India to strategically position itself, so as to fit into these plans. As Los Angeles is the financial conduit for Hollywood, India could also be a conduit for the production of Asian/Hollywood movies. India therefore needs to establish a presence in the international film industry, which at this point in time could even mean producing successful films like “Crouching Tiger, Hidden Dragon.”
Some areas of synergy that could become driving factors in the future of the Indian film industry and reduce the chasm between the two industries are:

Digital Content Creation
The convergence of computer technology with filmmaking technology is radically changing the way movies are made. Digital content is an integral part in Hollywood movies such as “The Matrix,” “Star Wars,” “Twister,” and “Jurassic Park,” with digital special effects having proved to be tremendously successful. As American lawyer Howard Frumes (who, incidentally, is also Shekhar Kapur’s lawyer) put it, “Traditionally, animation and special effects have usually been farmed out in Hollywood. As India is very advanced as far as software is concerned, this could be a possible area of collaboration.” For example, Rajtaru Videosonic Ltd., which creates special effects and animation for Bollywood films, has with the U.K.- and L.A.-based Cinesite worked on major Hollywood productions like “MI2,” “The World Is Not Enough,” and “Tomb Raider.”

After the runaway success of “Toy Story,” many computer-based animated movies are now in production. Rajtaru was also involved with X-Box, the Gaming Division of Microsoft, in the creation of 3D Nurbs models of full-scale football match stadiums. Further, “Ramayana,” an animated version of the Indian epic, won the best animation film award at the International Film Festival 2000 in California.

Manmohan Shetty is optimistic about the future of computer animation in India, but believes today’s projects tend not to involve creative work. Given the fact that India is the producer of some of the best software and IT professionals, and keeping in mind the low labor cost, the country could be at the forefront of film-related software and graphics production.

Risk Management
Bollywood as an industry is going through structural and corporate changes that will make it easier for local banks and other financial institutions to invest. (e.g., the Industrial Development Bank of India is investing in several domestic productions). For local banks and financial institutions to understand the risks involved in filmmaking, the Hollywood banks, insurance companies, and completion guarantors can collaborate with Indian counterparts to help them learn how to manage risk in filmmaking.

Low Cost Structure
With Hollywood movie budgets usually spiraling out of control, filmmakers are always looking for ways to reduce their costs. Govind Swarup, managing director of Film City Studio (the oldest and largest studio in Mumbai) remarked, “On the positive side, Hollywood producers are amazed at the cost differential prevailing between the two industries, which sometimes is almost a 1000 percent. Studio rentals in Hollywood are usually $1,000 per hour, whereas here it is a maximum of $1,000 for an entire day and night for our best facility.”

Therefore, Indian studios can offer overall low cost structure combined with high-quality talent and production facilities. For example, Ramoji Film City, a studio located in Hyderabad, is arguably the largest comprehensive film studio complex in the world. It offers an entire range of production facilities, equipment, and services for filmmakers all over the world, including state-of-the-art dubbing and editing. A few foreign films are being produced there now.

Similarly, Dr. Rama Naidu of Rama Naidu Studios in Hyderabad — his name appears in the Guinness Book of World Records for producing the largest number of films worldwide — is also initiating collaborations with various Hollywood players for the use of his facilities.

Locations
Given that the Indian sub-continent extends right from the snow-capped Himalayas in the North to the warm coastal regions in the South, and even has a desert, the range of locales for film shoots covers every conceivable climate and location. However, internationally, the trend to use Indian locations has not really caught on (in comparison to Australia and Canada) due to the commonly-held perception in Hollywood of political and regulatory impediments. According to Govind Swarup, “The image created abroad is that in India there are a lot of bottlenecks, like labor unrest, cumbersome guidelines for shooting films, as a result of which foreign collaborators have a lot of misgivings.” He also feels that the strength of the Indian film industry associations is another factor that has not been adequately highlighted. “Here the guilds protect their members much more than anywhere else, as nobody goes to court and most disputes are resolved at the guild level.”

On the other hand, among the Indian producers there has been an increasing preference for using locations outside India especially for the song and dance sequences. One of the prime factors driving this is that the producer can complete the shooting in a single stretch without having to worry about stars being pulled away by other producers. This leads to a quicker and more cost-effective production. For example, Sanjay Gupta, producer and director of the forthcoming Bollywood release “Kaante,” will be shooting his entire film at a single stretch of seven weeks in New York. To ensure the movie is of top international quality the entire crew will consist of Hollywood technicians, cameramen and other personnel. Further, the film will be shot with adequate insurance, corporate funding and completion guarantor.

Talent
With Bollywood becoming more sophisticated and its talent gaining global recognition, new opportunities for collaboration between the two industries are constantly being evolved. In the recent years, many Indian directors and artistes like Shekhar Kapur (“Elizabeth”), Mira Nair (“Mississippi Masala”) and A. R. Rahman (Andrew Lloyd Webber’s “Bombay Dreams”) have established their presence in Hollywood.

On the other side, Hollywood has also been importing talent and concepts generated by Bollywood. A classic example is the recently released “Moulin Rouge.” Director Baz Luhrmann is a fan of Indian movies and is greatly influenced by them. The movie also features the hit Bollywood song “Chamma Chamma.”

Even though certain Bollywood actors, such as Kabir Bedi, Om Puri and Amrish Puri, have demonstrated the adaptability of India talent by acting in a couple of Hollywood movies, it may be a while before Indian actors and actresses are accepted as part of mainstream cinema by foreign audiences, especially in the U.S. and Europe.

Sponsorship and Merchandizing
In Hollywood, corporate endorsements and the merchandising value of a movie are considered important sources of revenue. This trend is now catching on in India as well. Recently, Subash Ghai entered into a deal with Coca-Cola while making his box office hit “Taal.” The actor and actresses were shown drinking Cokes in various romantic scenes.
Similarly, Sanjay Gupta’s “Kaante” has also made revenues on in film advertising. Thus, merchandizing, apart from being a form of earning revenues, is also a point of entry for multinational companies.


Distribution and Exhibition
As of date, the market for distribution and exhibition of Indian films abroad is yet underdeveloped and untapped. However, recently the Aamir Khan production “Lagaan,” which was released in mainstream theaters in the U.S. and U.K., was greatly appreciated not only by the expatriates, but by the international audience as well.

Further, the exhibition market for screening films domestically lacks adequate infrastructure. In India, 12,548 theaters serve a population of more than one billion. However, there appears to be a trend towards setting up of multiplexes and amusement parks in India by a few of the major studios in Hollywood.

Cultural Heritage
The recent unprecedented success (in the U.S. market) of the joint product of the Hollywood and Taiwanese film industry, “Crouching Tiger, Hidden Dragon,” is an example of two film industries working together. There is no reason why Indian films that rely on ethnicity, folklore, talent, technology and software applications could not improve the success of Indian films abroad.

Legal Practices
India being a democratic country, one of the fundamental rights of every citizen is the freedom of speech and expression. This is subject to certain restrictions, such as defamation, religious sentiments, and obscenity. But, by and large, India provides just the right kind of liberal atmosphere for the production of films. India’s Intellectual Property Rights regime has also been strengthened by Indian courts that have recognized issues like piracy as a growing menace.

Meanwhile, the government of India has permitted 100 percent foreign direct investment in the film industry subject to fulfillment of certain conditions.

However, the Indian film industry can adopt a few of Hollywood’s legal and business practices. Whereas Hollywood is more professional and contract-driven, the Indian film industry’s greatest disadvantage is the fact that it is an “opaque” industry, which relies heavily on personal and emotional ties. Times are changing quickly, though. With public money coming into the industry, there is more accountability and transparency.

East Meets West
In the ultimate analysis, the outstanding features of the Indian film industry that would underlie any area of synergy are cost-effectiveness, a local English-speaking populace, a large talent pool, and a rich heritage of culture, history and geography.
Rudyard Kipling once wrote: “Oh, East is East and West is West and never the twain shall meet.” With collaboration between Hollywood and Bollywood, Kipling may be proved wrong. The meeting may not be at Internet speed, but it will occur and it will be balanced.

Ashni Parekh and Deepali Fernandes are attorneys at the law firm Nishith Desai Associates.