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FICCI-KPMG-Report-13-FRAMES

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72 The power of a billion: Realizing the Indian dream<br />

Digitization spreads its wings<br />

Digitization has changed the landscape of Indian cinema<br />

in several ways. Widespread release of movies across<br />

several screens, curtailment of piracy, reduced cost of<br />

prints, lower storage and maintenance expenditure and<br />

release of small budget films in a cost effective manner<br />

are some advantages offered by this technology. However,<br />

digital prints cost less, amounting to considerable savings<br />

for producers and distributors. Dabbang 2 was released<br />

on 3,500 screens 48 , a number previously considered<br />

unrealistic before the advent of digitization. The exhibition<br />

sector is expected to achieve 100 percent digitization in the<br />

next two years 49 . However, the cost of installing a digital<br />

system is high with installation costs of non DCI compliant<br />

systems ranging between INR 1-1.2 million and cost of DCI<br />

compliant systems costing INR 3-4 million 49 . Moreover,<br />

the entire value chain of films industry has been digitized<br />

except production of films where 80 percent of the movies<br />

are still produced in analog format 49 .<br />

“<br />

At INOX and FAME, we believe that adopting<br />

the latest technology is mandatory to bring<br />

in the best movie viewing experience to our<br />

guests. Today, we take pride in converting<br />

all our screens to DCI Compliant 2k Digital<br />

technology. This has helped in bringing state of<br />

art technologies like 3D to smaller cities.<br />

In addition to this, all these screens are now<br />

controlled by our Network Operations Centre<br />

(NOC). The installation of the NOC has helped<br />

us in monitoring our content and observe all<br />

screens across all cities we are present in.<br />

Scan the QR code to hear more from Alok<br />

“<br />

- Alok Tandon<br />

Chief Executive Officer,<br />

Inox Leisure Ltd.<br />

The march of digitization<br />

FY Movie Digital Prints* Analog Prints* Total Prints* Digital as % of Total Prints<br />

Jab Tak Hai Jaan 1725 221 1946 89%<br />

Ek Tha Tiger 1750 351 2101 83%<br />

2012-<strong>13</strong><br />

Don 2 - 2D/3D 1871 479 2350 80%<br />

Dabangg2 2363 275 2638 90%<br />

Rowdy Rathore 1927 373 2300 84%<br />

Ra.One -2D/3D 1900 600 2500 76%<br />

© 20<strong>13</strong> <strong>KPMG</strong>, an Indian Registered Partnership and a member firm of the <strong>KPMG</strong> network of independent member firms affiliated<br />

with <strong>KPMG</strong> International Cooperative (“<strong>KPMG</strong> International”), a Swiss entity. All rights reserved.<br />

2011-12<br />

2010-11<br />

Agneepath 1669 416 2085 80%<br />

Bodyguard 1480 585 2065 72%<br />

The Dirty Picture 16<strong>13</strong> 350 1963 82%<br />

Players 1500 361 1861 81%<br />

Tees Maar Khan 1210 490 1700 71%<br />

Dabangg 985 6<strong>13</strong> 1598 62%<br />

Housefull 930 550 1480 63%<br />

Rajneeti 1014 537 1551 65%<br />

Kites 876 618 1494 59%<br />

Source: UFO Moviez India Ltd market intelligence and Company records<br />

Note: * First week data of domestic theatrical release.<br />

48. ‘Salman Khan’s Dabangg 2 gets fantastic opening at Box Office’, OneIndia Entertainment, January<br />

20<strong>13</strong><br />

49. Industry discussions conducted by <strong>KPMG</strong> in India

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