South Cinema - Overview & Opportunities

The ABCs of South Cinema

THE MARKET IN NUMBERS

BEYOND THE NUMBERS

BRAND PARTNERSHIPS IN AND OUT OF FILMS

THE FACES OF SOUTH CINEMA

TARGETS AND RECOMMENDED ACTION

THE TEAMIntellectual Property of South Republik

THE MARKET IN NUMBERS

Intellectual Property of South Republik

Market Size Media & Entertainment Industry The Media & Entertainment industry in South India was estimated at INR 23,900

Crore in FY 2013.

According to Deloitte, the market is expected to grow at a CAGR of 16% to reach INR 43,600 Crore by FY 2017.

2013* 2014E 2015E 2016E 2017E CAGR

(2013–2017)

Total 23,900 27,800 32,700 38,100 43,600 16%

Television 13,470 16,540 20,180 24,090 27,960 20%

Print 6,680 6,950 7,540 8,260 9,020 8%

Film 2,680 3,010 3,370 3,780 4,220 12%

Radio 420 460 560 690 830 19%

New Media 690 850 1,050 1,290 1,600 23%


The South by 4 in Film

Andhra Pradesh (aka Tollywood)

2013 Revenues: 1,150 cr.

Number of Releases: 256

Number of Theatres: 1,400

43%

Karnataka (aka Sandlewood)

2013 Revenues: 150 cr.


Number of Theatres: XXX

7%

Kerala (aka Mollywood)



Number of Theatres: XXX

6%

Tamil Nadu (aka Kollywood)



Number of Theatres: 900

44%

TV comprises 56% of the Media and Entertainment (M&E) in the South

BUT

the films and film stars are the heart of the industry in the South creating and driving the best M&E content –

AND it is BIG

The south account for 50% of total number of certified releases with 831

There are over 3000 number of theatres

In 2013 total revenue was 2,689cr.

Deloitte has estimated the market grow at a CAGR of 12% through 2017 to reach 4,220cr.


Bollywood

RACE GURRAM*ing Allu Arjun, Shruti Haasan

April 11th 201440 Crores

98 Crores Worldwide (Net Rev)

2 STATES*ing Arjun Kapoor, Alia Bhat



NAAN SIGAPPU MANITHAN*ing Vishal, Lakshmi Rai



Tollywood Kollywood

v/s v/s

Three “Woods” –Similar Numbers –Tier 1


Bollywood

Venkatadri Express*ing Sundeep Kishan, Rakul Preet

29th November 201310 Crores


Hasee Toh Phasee*ing Siddharth Malhotra, Parineeti

Feb 7th 201425 Crores


Maan Karate*ing Shiva Karthikeyan, Hansika



Tollywood Kollywood

v/s v/s

Three “Woods” –Similar Numbers –Tier 2


BEYOND THE NUMBERS


Trends in South Cinema

Going Digital: Almost all films are being shot in digital which is allowing quick distribution across various

media.

Big + Small: 40% of films are big budget films but smaller films with innovative subjects are gaining

popularity

Straight to TV: Due to the high cost of marketing, films are going straight to TV and making money on

C&S rights. Hindi film industry has taken cognizance of the high entertainment value of South Indian films

and has been remaking several successful Tamil and Telugu films

Cheaper C&S: rights for a well produced Hindi film are usually double the cost of a Telugu or Tamil

film. So these films are dubbed into Hindi and other regional languages broadcasting all over India

Production Houses: Slowly productions houses are making films in the South but most are made by

single producers.

South Indian Diaspora: The huge South Indian population abroad is constantly demanding South

Cinema. NRIs tend to be more affluent and willing to spend during visits or on family in India as well as

consume international products that are available at home and abroad


Impact of Social Media

Vijay’s Kaththiamassed over 10 million hits

Allu Arjun’s

Race Gurram18 million hits

Kajal Aggarwal14.5 million followers

Rana

Daggubati (tier

2 hero)7 lakh followers

Yenni Arindhaalofficial teaser 3.6 million views and counting…

Arya & Nayantara’s

song from Raja Rani2.5 million hits

When fans can’t see their stars on the screen the turn to social media for everything they can get.

NTR Jr.2.5 million followers

Shruti Haasan1.69 million followers


BRAND PARTNERSHIPS IN AND OUT OF THE FILM


In-Film Marketing –where it stands

Visual Background Placement – it happens

Brand appears in background or is used, without highlight of logo

This is the most common form of in-film branding in the South

Common examples – Product Hoardings, Malls, Shops, Hospitals, Banks. For Instance: Lalithaa

Jewellery in Lingaa

Challenges –

Weak associate with hero which decreases

impact

Not always placed properly

Lack of consistent use of brand (Maruti in one scene and Tata in the next)

Advantages –

Production houses are familiar with this

method



Visual Hero-Character Association – it seldom happens

The brand is highlighted around and with the hero

This is not done very often in southern market but is familiar to production houses

Common Examples – Close shots of Mobile phones, cars, bikes used by the main lead.

For instance, Yamaha Integration in Siddharth’s NH4

Challenges –

Ensuring the placing and using of the product is done properly

during shoot and in post-production

Calls for association before the shoot is commenced to have

placement through out the film and across the star cast

Advantages –

Plenty of opportunities to well-place brands in

coordination with production house

Hero does not personally have to endorse the product



Audio Reference by Hero-Character – it never happens

When the hero references the product without it being present

This is most often an indirect reference but can be a direct endorsement

Example – Product jingles as part of script – mobile operator jingle every time a mobile phone rings in

the film.

Challenges –

Some actors will be hesitant in making direct

endorsement but many okay if just a reference

Collaboration with director to make sure the

lines and delivery are effective

Advantages –

Can be introduced into the script at any

stage

Almost no limits in what product can be

endorsed

Can create a great impact when done in

a clever or funny way



Visual/Audio Hero-Character Endorsement – good luck to you

When a the hero mentions the product and shows the product at the same time

This is almost always an endorsement

Example – Shahrukh Khan in Chennai Express for Nokia

Challenges –

A list heroes & heroines will hesitate to do this

especially when not paid extra

Expensive (should be done in conjunction with

other marketing to get maximum effect

Advantages –

Undeniably has the greatest impact on

the audience


Co-Branded Marketing

Leveraging an existing star-value to promote your product via advertisements across all media

Only three or four cases in all of South Cinema where this has been done

Due to high cost of film promotion/marketing, the market is ready for this type of partnerships

Challenges –

Producers not familiar with this type of

promotion and expect money instead

Advantages –

Out of film partnership – not dependence

on script or schedule of film

Easy integration with any film regardless

of subject

A-List film associations available every

month with little lead time


THE FACES OF SOUTH CINEMA


Box Office Appeal

Heroes are the key to box office success in South cinema

Fans are fanatical about their heroes

Movie watcher pack the halls to see their heroes over and over again

Directors are your second biggest box office draw

A films style and action keeps people coming back for more

Heroines, with very few exceptions, have much less impact

on box office success

Less screen time than in Hindi films

It is common that there is more than one female lead


Heroes of Tollywood

Ram Charan

3 Film Avg. Gross: 55 – 60 Crores

Top 3 Films: Magadheera,

Rachcha, Naayak

• Torch Bearer of Mega Family,

‘Mega Powerstar’

Allu Arjun

3 Film Avg. Gross: 50 Crores

Top 3 Films: Race Gurram, Julayi, Arya

Qualities: Style, Good Dancer.

• Known as “Stylish Star”

Mahesh Babu


Top 3 Films: Dookudu, Businessman, SVSC

Qualities: On-Screen Magic. Face of the

South

Endorses 16 brands

NTR


Top 3 Films: Baadshah, Brindavanam, Simhadri

Qualities: Good Dancing, Dialogue Delivery

“Young Tiger” Scion of the NTR family

A+

Prabhas


Top 3 Films: Mirchi, Mr. Perfect,

Darling

Qualities: Shy, the “Rebel Star”

Has more women fans than any

other hero.

A+ A

A+

A+

Pawan Kalyan


Top 3 Films: Atharinitiki Daredi,

Sabbar Singh, Kushi

Qualities: Power Star, Crowd Magnet.

Unprecedented power at the box office

A+


Heroes of TollywoodNaga Chaitanya


Top 3 Films: Manam, 100%, Yem

Maaya Chesaave

Qualities: boy next door, sweet

Next in line to carry ANR legacy

Sundeep Kishan


Top 3 Films: Venkatadri Express,

Routine Love Story, Joru

Qualities: Boy next door charm

Rana Daggubati


Top 3 Films: Krishanm Vande Jagaduru,

Leader

Qualities: 3rd Gen in film legacy. Busy across

North & South Cinema

Manchu Manoj

Last Film Gross: 25 Crores

Last Films: Current Theega,

Qualities: Has critical accolades, vibrant &

brings high energy to screen

B+

B+B+

B+

Ravi Teja


Top 3 Films: Power, Balupu, KIck

Qualities: Hero of the Masses. Crowd puller for B

& C markets.

Akshay Kumar & Salman Khan have remade

his films into Rowdy Rathore & KICK

A

Sai Dharam Tej

Last Film Gross: 22 Crores

Last Films: Pilla Nuvvu Leni Jeevitam

Qualities:

Next Gen Mega Family. Fan Following

Comes by Default.

B+


Heroes of Kollywood

Kamal Hassan


Top 3 Films: Vishwaroopam,

Dasavatharam, Vettaiyaadu

Vilaiyaadu

Qualities: intelligent roles

Vikram


Top 3 Films: Anniyan, Kanthaswamy,

Raavan

Qualities: great actor, intense, roll

diversity

Vijay


Top 3 Films: Kaththi, Thupaki, Nanban

Qualities: insane following among the fans.

Assured openings

Dhanush


Top 3 Films: Velaiyilla Pattathari, Aadukalam,

Raanjhanaa

Qualities: good fast dancing, good actor

A+ A

Rajni Kanth


Top 3 Films: Endhiran, Sivaji, ChandramukhiQualities: style, charisma,

God of South Cinema

A+A+

A+

A+

A+

Suriya


Top 3 Films: Singam 2, Mattran, Ayan

Qualities: strong on-screen presence,

style

A+


Heroes of Kollywood

Karthi


Top 3 Films: Saguni, Paiyaaa, Biriyani

Qualities: Younger brother of Suriya

rules the multiplex cinema circuit with

classy scripts. Endorses Bru & Airtel.

Jeeva


Top 3 Films: Ko, Endrendrum Punnagai,

Neethaane En Ponvasantham

Qualities: Fantastic Connect with multiplex

cinema

‘

Siddharth


Top 3 Films: Aayitha Ezhuthu, Udhayam NH4,

Jigarthanda

Qualities: Girls go gaga over him. An intense

actors who can pull a comic role with élan.

Vishal


Top 3 Films: Theeradha Vilaiyattu Pillai,

Sandakozhi, Avan Ivan

Qualities: Action hero. Heavy Appeals to both

B & C markets

A

A

Simbhu


Top 3 Films: Manmadhan, Vallavan

Qualities: Dance, Dialogues & on-screen

attitude. He remains in news both on & off the

screen

A

Aarya


Top 3 Films: Raja Rani, Madrasapattinam,

Naan Kadavul

Qualities: Can fit in any script. Comedy,

Fantasy, Action. Consistent BO deliveries.

A

A

A


Directors of TollywoodTollywood Kollywood

S S Rajamouli

Top Films: Eega, Magadheera, Vikramarkudu

Trivikram

Top Films: Atharintiki Daredi, Julayi, Athadu

Harish Shankar

Top Films: Gabbar Singh, Mirapakaya

Srinu Vaitla

Top Films: Dookudu, Baadshah, Ready

Puri Jaganadh

Top Films: Businessman, Badri, Pokiri

Surender Reddy

Top Films: Race Gurram, Kick

Sukumar

Top Films: Nenokkidine, 100% Love, Arya

A R MurugadossTop Films: Kaththi, Thupaki, Ghajini

Gautam MenonTop Films: Vettaiyaadu Vilaiyaadu, Yennai

Arindhaal, Ek Deewana Tha

LingusamyTop Films: Anjaan, RUN, Aanandham

K S RavikumarTop Films: Lingaa, Dasavataram, Aadhavan

Vishnu VardhanTop Films: Aarambham, Billa, ArinthumAriyamalum

HariTop Films: Poojai, Singham 2, Singham

Selva RaghavanTop Films: Irandam Ulagam, Aayirathil

Oruvan, Mayakkam Enna, Intellectual Property of South Republik

Heroines of Tollywood& KollywoodThey do still matter…

Kajal Aggarwal

Rakul Preet Singh

Shruti Haasan Anushka ShettyTamannah

Nayanthara

Samantha

Nithya MenenRegina Cassandra

Hansika


TARGETS AND RECOMMENDED ACTION


Types of Films

Hero: A+Director: A+/ABudget: 60-90 cr.Number of Screens: 1,800Days in the Theatre: +75

A+Hero: ADirector: A+/ABudget: 40-60 cr. Number of Screens: 1200Days in the Theatre: +60

AHero: B+Director: A/B+Budget: 15-25 cr. Number of Screens: 400-600Days in the Theatre: +45

B+

In South Cinema, regardless of the monetary or critical success, you can be assured of exposure 95% based on only a few variable


Primary Targets In-Film Branding –

Fewer opportunities and significant negotiations

to find mutually beneficial deals

Visual Background Placement 1 Visual Hero-Character Association 2 Audio Reference by Hero-Character 3 Visual/Audio Hero-Character Endorsement 3

Co-Branding Marketing – 2Producers expect money but can be

persuaded to accept promotion only

A

B+

In-Film Branding –

Lot of opportunities where producers are

always interested


Co-Branding Marketing – 1All forms of media possible as well as in-

person hero/heroine on-ground promotions

Working with A and B+ movies gives your more flexibility and options for types of in-film and co-branding opportunities

You get better return on investment associated with more A and B+ films than with just a few A+ films.

1 – Easy

2 – Possible

3 – Difficult But Possible

4 – Extremely Difficult

5 – Not Possible Without

Significant Investment


When Opportunity Presents…A+ films are still great opportunities to associate with brands but the conditions need to be right –

If the hero or heroine is already associated with the brand

Brand is willing to pay significant amount of money for in-film branding and good budgets for co-branded marketing

A+

In-Film Branding –

Less flexibility in how brands are portrayed in

films as compared to expectation of brands


Co-Branding Marketing – 2Fairly easy to develop but producers expect

money beyond marketing expenses.

1 – Easy

2 – Possible

3 – Difficult But Possible

4 – Extremely Difficult

5 – Not Possible Without

Significant Investment


THE TEAM


People & Services

‘MEDIA & MARKET RESEARCH’

‘CO-BRANDING & BRAND PARTNERSHIP STRATEGY’

‘PRODUCT PLACEMENT’

‘ANIMATION & MULTIMEDIA’

‘SOCIAL MEDIA’

‘MEDIA STRATEGY & PLANNING’

‘ENDORSEMENTS’

‘BRANDED CONTENT’

‘CREATIVE OOH SOLUTIONS’

20 years of advertising experience. Decade in planning

and buying and decade in creating content for brands

Jainardhan Sathyan

16 years experience in Media Strategy and Sales.

Specialisation in South Indian markets

Monika Sathyan

15 years experience in TV Commercials, Multimedia &

Animation

Vikas Sethi

10 years experience in Marketing. 8 years of specialisation in

Entertainment, Digital Content Publishing & Social Media

Sameer Choudhary


Reach [email protected]+91 988 55 666 17


South Cinema - Overview & Opportunities

Documents

Transcript of South Cinema - Overview & Opportunities