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Corporate India’s Interest on Telugu Movie Industry

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These days, corporate companies in India are giving more value to Telugu movie industry than the Bollywood. Mahesh Babu Starrer ‘Athithi’ has taken in an innovative move in the Telugu movie industry which has become one of the top markets in.

UTV Motion Pictures invested around Rs 20 crores on the movie as well as signed a contract with Mr Mahesh Babu for an additional movie without more ado. This is not going to be a one-off example of a corporate investing in movies. A lot of new-fangled generation directors like Mr V.N. Aditya and Mr Rajamowli are come closed by a number of corporate companies for making contract to make movies for them.

An aged and most experienced movie writer has allegedly roped in juvenile directors and movie houses to present a package of 10 movies to corporate. According to sources near to the development and Business Line conversation, “Besides helping the industry infuses much-needed investments, it (the corporate foray) would ensure a dependable job work to the technicians here.”

The Telugu cine industry waits for that the beginning of corporate financing would show the way to ideal professionalism and order. Mr Chaitanya, a member of AP Movie Writers’ Association, felt “Corporates don’t invest for the sake of investment. They invest only after doing due diligence. They bring in modern production and management techniques, while expanding the scope of the market.”

As well as, the corporate bring in a new and unique dimension to the promotional marketing of movies. The channel UTV Thumb Up had used Athithi’s Mahesh Babu for endorsing both the movie and the cocktail.

The corporate interest in the Telugu movie industry is for numerous causes. Despite the fact that the Hindi industry or the Bollywood directs in terms of budgets, the Telugu movie industry comes first in the number of produced movies. It produced 245 movies in 2006, after that Bollywood and Tamil produced respectively 223 and 162.

According to a source report, “The FICCI-PricewaterhouseCoopers (PwC) study on the Indian movie entertainment and media industry pegged the industry size at Rs 11,200 crore by 2008 as against the estimates of Rs 8,450 crore for 2006.”

It’s not only the box-office revenues which are appealing the corporate. Captivatingly, revenues from other than box-office like out of the country openings, home video and audio are rising day by day.

The FICCI-PwC research calculates approximately that payment from domestic box-office revenues would come down to 68 per cent of entire collections by 2011 as in opposition to 78 per cent in 2005. Conversely, home video division broken off in only 6 per cent in 2005 and it is predicted to contribute 14 per cent at least.

The President of Producers’ Council in AP Movie Chamber of Commerce,Mr Tammareddy Bharadwaja, revealed “The producers should look beyond the traditional stream of revenues (box office revenues). There other fronts are opening up.” They are supposed to realize further from audio rights, by means of progressively looming FM channels, using movie songs as chief supply.

Source by Aarthi Agarwal

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