Non-film conglomerates can revitalize struggling movie production houses
Subscribe to enjoy similar stories. Serum Institute of India CEO Adar Poonawalla's decision to buy a 50% stake in Karan Johar’s Dharma Productions and Dharmatic Entertainment for ₹1,000 crore could prompt more non-film conglomerates to invest in movie production houses at a time when they are struggling with dwindling revenues from theatrical, satellite and digital sales, industry experts said.
Such investments could help independent production houses rich with IP (intellectual property) to scale up, re-energising an industry contending with stagnant revenues for the past few years when even Hollywood studios have slowed their investments in the country. Finding non-film investors from within the country is one solution to the crisis in this market, which has frequently been seen as unpredictable and unsafe, they said.
“It is important that external capital finds its way into the industry for the health of the production sector. It’s not like independent producers cannot survive without it but that is the only way to ensure the film business scales up," said a senior official at a film studio, declining to be named.
According to the Ficci EY media and entertainment report 2024, the film entertainment segment in India grew to ₹19,700 crore in 2023 from ₹17,200 crore in 2022 and ₹9,300 crore in 2021. Recent instances of Paramount Global quitting the country, after selling its entire stake in Viacom18 to Mukesh Ambani’s Reliance Industries, or Walt Disney pulling the plug on local film production anyway prove global entertainment firms are refraining from active investment, the official cited earlier added.
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