Tracing the Bollywood Curve: 1991 - Today

The transformation of the film industry in the post-reform era has been remarkable. The global total revenue has grown multifold. Closer home, India currently produces more films than both the United States of America or the European Union.

Progress in the pre-reform era was hampered by high entertainment taxes, import controls, foreign exchange controls, etc. which limited shooting in foreign regions, market growth, and lack of recognition as an industry. This lowered its credibility in the eyes of banks - thereby increasing its dependence on the black market for financing. With the reforms of 1991, Bollywood had a chance to grow immensely. Import liberalization gave the industry access to state-of-art equipment and rich talent pool, along with geographical mobility to shoot films. Under the Industrial Development Bank of India Act 1964, official recognition was granted to this sector as an Industry.

With economic liberalization came the NRI invasion tied to ostentatious locations and extravagant lifestyles. Romance featured widely to please not just Indian audiences, but NRIs as well. However, this element largely went unnoticed in Manoj Kumar’s Purab Aur Paschim (1970 ) and Dev Anand’s Des Pardes (1978), but with the incoming 1990s, these changes were widely celebrated by audiences. Filmmakers like Karan Johar, Aditya Chopra, and Sooraj Barjatya brought about what film critics call a ‘generational change’. Barjatya’s Hum Aapke Hain Kaun (1994) was an eloquent family drama and the first Indian film to earn more than 100 crores worldwide. These films gave the overseas audience a taste of the Indian culture, values, and traditions in a modern style. People could not draw a comparative with Western films because even if the style was Hollywood-ish, the roots were Indian. Shahrukh Khan is the perfect embodiment of this multicultural aesthetic. His characters in Dilwale Duhaniya Le Jayenge (1995), Dil To Pagal Hai (1997), and Kuch Kuch Hota Hai (1998) show him as a witty, debonair, cool but completely grounded Indian young man. They offered the idea that Indian values are intertwined with the human fabric; one can live outside India and still be Indian (and sometimes even more Indian than the residents).

Until the 1990s, funding for films was received via private firms, corporations, or was lent by a pool of 10-15 businessmen at high rates deducted in advance. This was never documented - allowing transactions in black. However, with the birth of institutions like the Industrial Development Bank of India post-1990s came schemes that required proper documentation and legal aid. Producers no longer had to risk savings or mortgage property to finance films. In fact, they adopted newer schemes. These changes have improved the quality of content and cinematography of films with the usage of the latest technology, equipment, and visual effects (VFX). Rakesh Roshan’s Krish (2006) and Anubhav Sinha Ra-one (2011) were the beginners of the VFX revolution in India.

Producers birthed out of the 1990 reforms have now turned into full functioning production houses like Viacom 18 Motion Pictures, Eros International, and UTV Motion Pictures. Their work commonly involves production, marketing, worldwide distribution, licensing music, and merchandising rights. There is also an element of collaborative strategies brought forth by a long line of brands that wish to be either partners or sponsors. Pre-liberalization, Indian theatres released Hollywood films after several months, if at all. However, a change in policies combined with the overwhelming Indian love for Hollywood, films release in India exactly at the same time as their western counterparts. With greater Foreign Direct Investment (FDI) flowing into the entertainment industry came the Walt Disney Company (India), Fox Star Studios, and Sony Picture Entertainment. Fox Studios has co-produced big-budget films including recent hits like Kalank (2019), Chhichhore (2019), Chhapaak (2020), and Dil Bechara (2020). Studios and media houses, such as Yash Raj Films and UTV Motion have collaborations with foreign studios as well where they employ modern contracting and management techniques that enable them to smoothly produce multiple films each year.

Liberalization revolutionized cinema halls from rickety, gloomy, dimly-lit, small theatres to plush, spacious, luxurious multiplexes. While in the past wealthy individuals preferred video cassette recorder (VCR) to watch films in the comfort of their homes and avoid going to cinema halls altogether, the current scenario is a stark contrary. The government permission of 100% foreign direct investment (FDI) in the exhibition business, allowed the states to rationalized and reduced entertainment tax from the prior reality of 50% of the ticket cost. Another major policy reform brought by state governments of Uttar Pradesh and Maharashtra were entertainment tax holidays, which boosted business. Another important milestone was the opening of India’s first multiplex at PVR Saket New Delhi.

The revenue sharing ratio between theatres and producers is imbalanced in the former’s favor. The producer gets 50 - 52% of the business in the first week of the film’s release, which decreases over time. The length of the film’s life at the theatre is immaterial for the producers; they want to attract maximum audiences to watch the film in the first week to maximize their profits. This gave rise to the promotion frenzy, an idea that is now set in stone.

While new techniques might be overtaking ancient practices, in terms of getting rids of misogynistic, xenophobic, homophobic jokes and practices, inclusive storylines, and better science fiction storylines, there’s still a long way to go.

By-

Vaidehi Tripathi

(99vaidehitripathi@gmail.com)