IT'S TRANSPARENT: Multiplexes like Fame Adlabs have helped the cause of producers in terms of collections

Is distribution really the area that has seen the most change in Bollywood? Absolutely, say those in the business. For long, the distribution system was characterised by virtually zero levels of transparency and a lack of trust between those involved in the business. Exhibitors (read: theatre owners) often stiffed producers and distributors by not disclosing actual revenues. A film that was a hit could have, in reality, been a bigger hit; and a flop could have actually been an average grosser. And the extent of damage was as high as 50 per cent in some cases. That wasn't a malaise restricted to India alone. Overseas markets emerged a goldmine of sorts for producers (the population of non-resident Indians in the UK and the us ensures that), but they still had to live with exhibitors and distributors not declaring their takings accurately.

Most producers have chosen to tackle the problem by setting up their own distribution companies or divisions that, in turn, directly deal with smaller distributors and exhibitors. This minimises the chance of under-declaration. The emergence of multiplexes has helped the cause of producers. According to one producer, it is possible to have control over 80 per cent of the film's collections since this comes from larger cities where the multiplexes are transparent about ticket collections. "The other 20 per cent, frankly, is something that I am not bothered about," he admits. After all, 80:20 is better than 50:50.

Companies like Yash Raj Films have set up their own distribution wings that, apart from distributing their own films, do that of other large production houses. Ram Gopal Varma too has entered the business. The conventional distribution model may well be dead.

The advent of multiplexes, in particular, has ensured that producers can deal directly with exhibitors, many of whom have a presence across cities, and are transparent about collections. Given the imperfections in the old distribution system, and the potential gains, several companies such as Mukta Arts, UTV and Cinevista have diversified into the distribution space. And some producers, distributors and exhibitors are contemplating turning conglomerates that would have a presence in every aspect of Bollywood, from making films to screening them.

DIGITAL DREAMS A Chennai entrepreneur shows the way.

V. NATARAJAN Chairman, Pyramid Saimira Theatre In what could be sign of things to come, Natarajan beams movies directly to theatres through satelite Trust the tech-savvy south to show the way. it now boasts two companies, Pyramid Saimira Theatre and Real Image Media Technologies Ltd, both in the state of Tamil Nadu, that are in the midst of a large-scale experiment in digital distribution that could well change the way movies are distributed in India. Although the specifics of how the companies are approaching the business are different, the principle remains the same: sign up a large number of theatres; enter into a deal with producers or distributors; and beam the movie (which has been converted into digital format if it already isn't in it) straight to the hall through satellite, thereby reducing the chances of piracy to almost nil. And while Pyramid's Chairman V. Natarajan plans to either acquire the distribution rights outright or enter into a revenue-sharing agreement with the producer or distributor, Real Image Media's Director Senthil Kumar will charge distributors a flat fee of Rs 300 per screening. Both companies have entered into arrangements with theatre owners (a lease in the case of Pyramid; the sale of a proprietary cinema player in the case of Real Image) to upgrade the on-site infrastructure required. Pyramid is testing its satellite relays in 12 theatres and hopes to eventually connect to 125 theatres through Tatanet's satellite services network by January. And Real Image will connect to 140 theatres in Tamil Nadu and Andhra Pradesh by January through Hughes Network's VSAT service (35 theatres have been hooked up and five more will soon join the network). There's no denying the technological sex appeal of simply beaming movies through satellites or other means to a network of theatres (indeed, the technology will even make it possible for a bouquet of, say, a dozen movies being thus transmitted, with the decision on the one to be screened being taken at the theatre) and India's telecommunications boom has made this possible. There have been reports that Anil Dhirubhai Ambani Enterprises (ADAE) could, through its companies Adlabs and Reliance Infocomm, work towards achieving this. Eventually, however, the cost of digital prints (Rs 10,000 currently) will fall further, making it extremely viable for producers and distributors to opt for simply copying movies on to diskettes and couriering them to theatres (after ensuring that the said diskettes cannot be copied).

"The large players have the opportunity to build companies like those in Hollywood," says Ravi Sardana, Vice President, ICICI Securities, explaining that production houses can do so by moving into areas such as distribution and exhibition.

Changes in distribution haven't just happened in terms of production houses, or others entering the business, and turning it more transparent; there have been significant changes in terms of technology and logistics too.

Today, for instance, digital prints, as opposed to celluloid ones, are common (they cost less and are far more easy to transport and are also far more difficult to damage), and some companies are even considering beaming motion pictures through satellite to theatres (see Digital Dreams). And in an effort to tackle piracy, producers and distributors have taken to releasing a huge number of prints (again, facilitated by the fact that digital prints cost a 25th of celluloid ones). Yash Raj Films, for instance, released over 350 prints of Salaam Namaste across the country. That would have been inconceivable in the past. Ramesh Sippy, the man behind Sholay, considered by many to be the most successful Hindi film ever, remembers releasing the motion pic on August 15, 1975, in Mumbai and in October, November of the same year in other, Northern markets. "That would be unthinkable today," he laughs.