Contrary to the fears
of digitization viewed as the harbinger of doom to the film industry, the
global film industry is intact and continues to churn out thousands of films
annually. The report stated UNESCO’s finding of increase in feature film production from around
5,600 films in 2005 to 7,200 in 2009 and recorded a total of 31,519 feature
films produced globally between 2005 and 2009.[1] Regionally,
the US produced around 700 films both in 2005 and 2009, Germany produced 146
films in 2005 and 216 in 2009, Russian film production went from 161 to 253
between the same period and UK made 100 films in 2005 which increased to 130 in
2009.[2] Box office revenues have also been
increasing in these countries – for example, the France box office saw a 4.7%
increase in revenues, UK’s saw a 5.2% increase and Germany’s saw an increase of
4.1%.[3]
A slightly
different growth pattern has been witnessed in India. India is home to the
world’s largest film industry – Bollywood, which produces, as reports say, roughly twice the number of movies as the American
film industry, and sells 2.5 times the number of box office tickets as the U.S
market. However, an overall study of the number of films produced by the Indian
film industry shows that film production is sliding. This evidenced from the following numbers - 1325
feature films were produced in 2008 but only 1255 films were produced in 2011,
following a steady decline from 2009 (1288) and 2010 (1247).
The
cause for this decline cannot be accurately ascertained but it pertinent to
note that inspite of the decline in production, KPMG expects revenues from Indian cinema to grow
from $ 2.3 billion in 2008 to $ 3.6 billion by 2013
(here). This report also confirmed the that the Indian film industry
grew by 11 % in 2010 to Rs 65,200 crore and is excepted to be worth Rs 1,27,500
crore by 2015.
Moreover,
the sources of revenue for this industry (in India) have been increasing. A report
by E&Y on the Media and
Entertainment Industry, noted that though theatres were still the primary
sources of revenue (60%), other revenue streams such as pre-selling satellite,
home video rights and revenue from new media such as online rights and mobiles
is increasing. However, the E&Y report also notes that the Indian film
industry continues to lose around Rs. 50 billion per year due to piracy and is
one of the top countries in peer-to-peer file sharing infringements worldwide.
Not
only is the film industry flourishing despite digitization but also the television industry. As the report
states, the European Audiovisual Observatory noted a significant increase in TV channels – growing from a few
hundred in 1999 to 9,800 channels in 2010.[4]
Similarly in India, according to reports
(here
and here),
the TRAI released data in its quarterly report with regard to number of TV
channels in India till 31 Dec 2011 to be 825 channels. The report also stated
that India has 44.21 million private DTH subscribers as of 31 December 2011.
This
vast demand has also resulted in a significant increase in revenues of television production companies. As a report states – “Three years ago, it was impossible to find a
television production company that had crossed the Rs 30-crore barrier, except,
of course, Balaji Telefilms. Now there are more than half-a-dozen of
them. Vikatan Televistas (Kolangal, Thirumathi Selvam), Optimystix (Comedy
Circus, Saas Bina Sasural) and Hats Off Productions (Khichdi, Sarabhai vs
Sarabhai) among others have just made it to the Rs 80-100 crore club. They
will, in the coming year or two, cross the Rs 100-crore mark”.
Conclusion
This
analysis goes to show despite the emergence of digitization of content, the
tide is still high for creativity, revenues and demand for videos and films in
the entertainment and media industries worldwide. Opponents to digitization
feared that new technology would primarily– threaten creativity, lead to exploitation
of creators and would lead to a socio-economic crisis caused by loss of jobs,
lowering of revenues etc. (here) However,
digitization has brought to fore a large pool of talent that can and has
contributed to enhancing the levels of creativity in these fields. Also, these
industries by tapping into revenue streams of digitization have and can make
whooping profits. Moreover, as many have argued (here),
the issue of exploitation of creators may not be directly related to
digitization of content and may be more appropriately addressed by ensuring
balanced contracts. With regard to the socio-economic impact of digitization,
the numbers clearly show that inspite of digitization, the entertainment industry
is prospering and fears of loss of revenues and loss of jobs may not be well
placed. Therefore, though the landscape for artists has changed due to the
emergence of new technologies, the way forward is mould policies to tap into
and adapt to these new technologies and methods.
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