Action-thriller flick Dhoom 3 is here, and a rash of merchandise - from Barbie Katrina Kaif dolls to Aamir Khan Hot Wheel bikes, mobile games, USB sticks, sling bags and even dog tags - is riding pillion. ProducerYash Raj Films (YRF) is pulling out all stops to create a buzz around the film, partnering with 20 marketers to launch over 200 merchandise items priced between Rs 70 and Rs 9,000.
"This is the first time merchandising is being pursued in a such a significant way in India," says Rohit Sobti, V-P (licensing and merchandising), Yash Raj Films. They have launched a fashion label called Divani, console games, a range of licensed products and will soon be launching a TV animation programme.
"We see this as a new revenue stream," adds Sobti. Their mobile game, released on October 21, has already seen 4 million downloads. "It was easy to sign up with global partners like Mattel who understand merchandising well. But the difficulty was with those in India who are new to it," Sobti says.
This is the first big attempt by Bollywood - whose size as an industry is estimated at Rs 12,240 crore for 2013 by KPMG - to pry open a new revenue stream in the merchandise category. Globally, though, merchandising is huge for filmmakers. According to the Licensing Industry Merchandisers' Association ( LIMA), the worldwide trade organization for the licensing industry, popular films like The Avengers and The Dark Knight Rises helped merchandise in the entertainment category in North America touch $49.3 billion in retail sales in 2012.
HOLLYWOOD VS BOLLYWOOD
"In the US it is a massive category and could contribute over 5% to Hollywood. But in India it is a very small category," says Jehil Thakkar, partner, head (media and entertainment), KPMG in India. He thinks this is because the organized retail sector in India is small; andpiracy is high, too. Also, sequels - a rich category for launching merchandise - are rarer in Bollywood. The action-packed Dhoom series is one of the first big attempts by Bollywood to go down the sequel route.
But that's not the only big difference. The way Bollywood makes its money is vastly different from the way Hollywood does. Further, the way Bollywood rakes in the moolah today is also very different from the way it did five years back.
For Bollywood, the biggest chunk of revenues comes from the domestic theatre releases. It has grown steadily from Rs 8,020 crore in 2008 and KPMG's projection for 2013 is a little over Rs 9,200 crore and for 2017 it is Rs 14,220 crore. One big trigger for this anticipated growth is the number of screens in India. From around 100 over a decade back it is nudging close to 4,000, with many single-screen cinema halls upgrading into multiplexes.
More importantly for Bollywood, this growth has been accompanied by improved profitability. For instance, average ticket prices have moved up from under Rs 40 to over Rs 60. Also, with digitization of films, producers save on the cost of reels - Rs 50,000-80,000, on an average - thereby buoying up the bottom line. "Each film is earning far more money than in the past," says Smita Jha, head (entertainment and media practice), PwC India. Not surprisingly, Bollywood is seeing a steady rise in the Rs 100-crore club. The number of movies in this club has risen from one in 2008 to nine in 2012.
"This is the first time merchandising is being pursued in a such a significant way in India," says Rohit Sobti, V-P (licensing and merchandising), Yash Raj Films. They have launched a fashion label called Divani, console games, a range of licensed products and will soon be launching a TV animation programme.
"We see this as a new revenue stream," adds Sobti. Their mobile game, released on October 21, has already seen 4 million downloads. "It was easy to sign up with global partners like Mattel who understand merchandising well. But the difficulty was with those in India who are new to it," Sobti says.
This is the first big attempt by Bollywood - whose size as an industry is estimated at Rs 12,240 crore for 2013 by KPMG - to pry open a new revenue stream in the merchandise category. Globally, though, merchandising is huge for filmmakers. According to the Licensing Industry Merchandisers' Association ( LIMA), the worldwide trade organization for the licensing industry, popular films like The Avengers and The Dark Knight Rises helped merchandise in the entertainment category in North America touch $49.3 billion in retail sales in 2012.
HOLLYWOOD VS BOLLYWOOD
"In the US it is a massive category and could contribute over 5% to Hollywood. But in India it is a very small category," says Jehil Thakkar, partner, head (media and entertainment), KPMG in India. He thinks this is because the organized retail sector in India is small; andpiracy is high, too. Also, sequels - a rich category for launching merchandise - are rarer in Bollywood. The action-packed Dhoom series is one of the first big attempts by Bollywood to go down the sequel route.
But that's not the only big difference. The way Bollywood makes its money is vastly different from the way Hollywood does. Further, the way Bollywood rakes in the moolah today is also very different from the way it did five years back.
For Bollywood, the biggest chunk of revenues comes from the domestic theatre releases. It has grown steadily from Rs 8,020 crore in 2008 and KPMG's projection for 2013 is a little over Rs 9,200 crore and for 2017 it is Rs 14,220 crore. One big trigger for this anticipated growth is the number of screens in India. From around 100 over a decade back it is nudging close to 4,000, with many single-screen cinema halls upgrading into multiplexes.
More importantly for Bollywood, this growth has been accompanied by improved profitability. For instance, average ticket prices have moved up from under Rs 40 to over Rs 60. Also, with digitization of films, producers save on the cost of reels - Rs 50,000-80,000, on an average - thereby buoying up the bottom line. "Each film is earning far more money than in the past," says Smita Jha, head (entertainment and media practice), PwC India. Not surprisingly, Bollywood is seeing a steady rise in the Rs 100-crore club. The number of movies in this club has risen from one in 2008 to nine in 2012.
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