Hollywood films rake in healthy collections at Indian box office. Here's why

Avengers: Infinity War: India collection- Rs 200.25. Picture: Reuters

There is no denying that strong content of Hollywood films is helping them make big bucks in India but there is more to it.

Limited release, change in infrastructure of cinemas and focus on digital medium are other factors that are helping Hollywood flicks enjoy a good run in the country.

Going digital

In order to be visible on key digital channels, Hollywood ventures partner with certain digital platforms to promote their films. This is what movies like Avengers: Infinity War and Deadpool 2 did.

According to film trade analysts, Hollywood now contributes about 20 percent to the total box-office collections in India, whereas it used to be 7-8 percent a decade ago.

Hollywood has not only focused on content but also other key elements to promote a film like merchandise, posters, lure on social media. This marketing is expanding not only to social media but to the print media, shops, malls, multiplexes, promotional activation.

Hollywood films also have a target clientele. Most of the clientele is digitally equipped. So, their promotion is also targeted. Most of their promotions are online and gaming-based; there are so many popular superhero games. They are creating a wider base and trying to implement their strategy as per the norms of the industry.

Change in cinemas

As a global policy, Hollywood films do not play on the E-Cinema format. And this has boosted the change in the infrastructure of Indian cinemas.

Over the years, a lot of conversion has happened from E-Cinema to D-Cinema. And it has happened because Hollywood is available not just in the original English language, but the films, especially the bigger ones, are also dubbed in languages like Hindi, Tamil and Telugu.

Hollywood films come in only DCI (Digital Cinema Initiative) format and earlier the screens compatible with that were very few. Now, more and more theatres are able to screen such films. Hence, the numbers of such screens are going up.

When Avatar had released in India in 2009, India had 100-odd screens that were suitable for the film’s format. After that, more multiplexes have opened and there is more penetration.

To play 2018 release Avengers: Infinity War, many theatres had changed the format of their screens from E-cinema to D-cinema.

The difference between the two formats is that D-cinema refers to the use of digital technology to distribute or project motion pictures. As for E-cinema, it stands for electronic cinema which includes usage of reels of motion picture films.

Growing business of digital cinemas

The total revenues of the film business have more than doubled in the six years since the first major digital cinema roll-out began in 2005. Of these, box-office revenues have grown fastest thanks to multiplexes and digital single screens.

The number of digital screens in 2009 were 50 in 18 cities which went up to 130 such screens in 30 cities (97 in tier 1, 22 in tier 2 and 11 in tier 3 cities and towns). And box office collections are keeping pace with the increasing screen density.

A more recent report by PricewaterhouseCoopers (PwC) titled Global Entertainment and Media Outlook (2018-2022) suggests that the main area of growth in exhibition is in digital screens. There are expected to be 5,532 digital screens in 2022, a significant addition to the 2017 figure of 3,524 and representing an increase at a 9.4 percent CAGR, the report added.