The financial crisis is reaching into industries across the globe – even ones which have experienced recent surges in popularity.

• In recent years, studios, media companies, and financial institutions began to invest heavily in Bollywood films, as India’s growing middle class could more easily afford such leisurely activities.
• Now, this $2 billion a year industry must adjust to the global financial downturn by curbing production and budget costs, and ultimately the amount of films that will be made.
• Producers are negotiating for lower rates from actors, choreographers, and the film crew in an effort to keep costs down.

Facts & Figures

• Bollywood received $140 million in 2007 and $700 million in 2008 but so far only $25 million in 2009 from foreign aid through mergers and acquisitions.
• In 2008, Bollywood produced 1,000 films but in 2009, only 700 films are projected to be completed.
• The average budget for a Bollywood film is $2 million and only 14 films Bollywood films have ever made more than $20 million at the box office.

Best Quote

“Everybody is going to bleed a little bit. Anything with a big star associated with it will find a way but a lot of smaller films are going to have trouble.” – Siddharth Roy Kapur, CEO of UTV Motion Pictures (one of India’s biggest film production companies)

Tags: bollywood, financial crisis, global economy, India