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PVR Pictures, the production and distribution arm of multiplex operator PVR, plans to take a major pie of the box office collections by getting into the distribution of Hollywood movies.
The company, which initially started as a production house with movies such as ‘Taare Zameen Par’ and ‘Jane Tu Ya Jaane Na’, has a pipeline of 30 international movies to be released in 2013, starting with ‘Iron Man’ and ‘The Reluctant Fundamentalist’. The latter is slated to hit theatres on May 17.
The company’s shift in focus from production to distribution is attributable to the huge losses incurred recently. The last movie produced by PVR Pictures was ‘Shanghai’, which hit the theatres last year.
Sanjeev Bijli, PVR’s Joint Managing Director, said that the company has acquired the distribution rights of these films for about Rs 10 crore and expects a 25-30 per cent return on the investment this year. Bijli, who also oversees the overall business of PVR Pictures, further added that the company posted a profit of Rs 3 crore last fiscal, after it focused on a pure-play distribution of Hollywood movies. It clocked revenues of around Rs 30 crore in 2011-12.
Looking West?
“The pie of Hollywood movies in the Indian box office has increased from a mere three per cent six years ago to 10 per cent now. This is an opportunity to cash in on the growing demand, and, hence, we believe it is the right time to focus on just distribution,” Bijli said.
According to a recent report by FICCI and KPMG, 2012 has proved to be a blockbuster year for Hollywood movies as they grossed a total of Rs 950 crore at the box office. Movies such as Amazing Spider Man, The Avengers, Skyfall and Life of Pi did a collective business of $48 crore last year.
The wider distribution network due to digitisation and a spurt in the number of multiplexes, including 3D screens, coupled with robust marketing strategies, such as tie-ups with local brands, has aided the growth of Hollywood content, the report stated.
The Southern market contributed maximum to the collections at 35 per cent, followed by the West at 30 per cent. North and East contributed about 25 per cent and 10 per cent, respectively.
Some of the movies to be released this year are Cindrella (3D), The Mortal Instruments, Close Circuit, Now You See Me and Prisoners, amongst others.
> priyanka.pani@thehindu.co.in
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