The
film
industry,
in
the
last
two
years,
has
witnessed
exponential
growth.
In
2006,
it
was
estimated
to
be
worth
US
$1.8
billion
and
according
to
estimates
was
to
grow
to
US
$
5.1
billion
in
2011.
The
last
five
years
also
saw
the
entry
and
consolidation
of
corporate
houses
in
the
business.
Flush
with
funds,
top-billed
stars
and
filmmakers
could
ask
for
the
moon
and
get
it.
Tie-ups,
mergers
and
acquisitions
of
unimaginable
scale
had
become
the
norm-the
recent
Big
Picture
Entertainment
investment
in
Steven
Spielberg's
Dreamworks
for
US
$
550
million
being
an
example.
With
a
financial
crisis
across
the
global
bourses,
has
the
film
industry's
dream
run
come
to
an
end?
Presently,
Bollywood
players
claim
that
all
is
well
with
their
world
though
insiders
on
condition
of
anonymity
are
willing
to
admit
that
things
look
set
to
change
soon.
Raising
funds
for
projects
will
be
more
difficult
as
banks
are
facing
a
liquidity
crisis.
Companies
that
are
listed
on
the
London
Stock
Exchange
and
have
IPOs
have
reportedly
been
impacted
by
the
global
financial
crisis.
According
to
reports
in
the
pink
papers,
the
shares
of
Indian
companies
have
already
gone
down
in
value
over
the
last
year.
The
fallout
is
that
companies
will
go
back
to
being
more
selective
about
the
films
they
make.
Projects
toplining
blue-chip
stars,
heroes
in
particular
such
as
Shahrukh
Khan,
Aamir
Khan,
Akshay
Kumar
and
Amitabh
Bachchan
are
likely
to
sail
through
but
the
pressure
to
bring
in
a
higher
return
on
investment
is
likely
to
increase.
It
bodes
well
for
actors
like
SRK
who
have
been
consistent
with
their
prices
through
both
good
and
bad
times.
Likewise
A
-list
directors
are
unlikely
to
face
trouble
but
they
will
have
to
cut
down
the
frills
to
keep
projects
cost-effective.
Says
Farrokh
Balsara,
Head,
Media
and
Entertainment,
Ernst
&
Young,
"The
current
situation
will
bring
in
a
reality
check.
There
is
likely
to
be
a
lot
more
discipline.
A
lot
more
planning
if
you
will
which
could
be
as
much
as
a
year
and
a
half
as
opposed
to
the
present
six
months
while
the
actual
shooting
may
just
last
for
two
months.
There
is
really
no
recession
on
the
consumer
end."
Corporates,
new
entrants
in
particular,
who
were
putting
out
unrealistic
sums
of
money
to
attract
stars,
will
have
to
innovate
as
funds
from
the
markets
are
hard
to
come
by.
Expansion
plans
are
likely
to
be
on
hold
unless
they
have
a
direct
bearing
on
the
core
business
which
is
making
films.
Even
as
we
go
to
print,
the
word
is
out
on
UTV
World
Movies
and
UTV
Movies
folding
up
operations
in
Delhi.
They
will
now
be
consolidated
within
the
Mumbai
broadcasting
operations.
Filmmaker
Sujoy
Ghosh
also
concurs
that
there
would
be
weeding
out
among
the
current
crop
of
players
while
Ramesh
Sippy
thinks
that
everybody
is
likely
to
be
affected.
Also,
the
money
coming
in
from
satellite
rights
etc
(which
was
as
much
as
Rs
10
crore)
will
be
reallocated-producers
will
have
to
settle
for
more
realistic
prices.
Television
channels
are
no
longer
keen
to
acquire
rights
for
films.
Expenditure
will
be
on
the
conservative
side
and
stars
will
have
to
take
a
pay-cut
with
both
films
and
endorsement
deals.
Balsara,
however,
reiterates
that
the
income
from
new
media
is
likely
to
grow
as
producers
might
want
to
better
exploit
non-traditional
revenue
sources.
As
is
the
home
viewing
segment
which
will
find
more
takers.
However,
standalone
producers
and
production
banners
which
have
thrived
under
far
more
harsh
conditions
in
the
absence
of
corporate
funding
will
manage
to
tide
over
the
crisis.
Independent
producers
will
tighten
their
belts
and
will
opt
for
films
that
bring
in
audiences
across
the
spectrum
and
not
just
the
urban
viewers.
Producer
Sajid
Nadiadwala
who
counts
among
the
few
remaining
standalone
producers
was
of
the
opinion
that
the
current
phase
is
a
"cleansing
period" during
which
the
crucial
price
corrections
will
take
place.
"There
can
never
be
a
recession
in
the
film
industry,"
says
Nadiadwala.
In
the
face
of
the
current
adversity,
it
is
a
sentiment
that
the
industry
would
like
to
hold
on
to.
Story first published: Thursday, December 4, 2008, 12:53 [IST]