A look at some statistics from the last 12 months revealed that Indian films have a fall-back option in the form of overseas markets.
Looking at some of the Bollywood movies released this year, one can't help but wonder that given the number of films that struggled to break even, how is it that the industry remains lucrative for those invested in it.
Well, a look at some statistics from the last 12 months revealed that Indian films have a fall-back option in the form of overseas markets. These markets have become important contributors to a film's overall revenue.
According to a FICCI-KPMG report, contribution from international markets in 2016 was 8 percent of the overall industry’s revenue. The segment had grown by 14 percent, from Rs 9.5 billion in 2015 to Rs 10.9 billion in 2016. And by the looks of it, this success of Hindi films outside India continued in this year as well.
As of today, a director of a Bollywood movie has that extra bit of assurance while venturing into the project that even if his or her film doesn't do well in India, it will find takers abroad and mitigate his losses or even make a small profit.
If you're looking for proof that this theory is more than just that, one look at the performance of the two Shah Rukh Khan movies released this year will be enough.
Jab Harry met Sejal did attract many viewers in the domestic market but in the UK, US, Australia, Pakistan, Singapore, Malaysia, and Indonesia, the movie enjoyed a phenomenal run. The film's overseas success was apparent when it went on to collect Rs 67.66 crore and became the second highest overseas grossers among Hindi films.
Another example of this phenomenon is the performance of SRK's other release Raees, which raked in Rs 90.26 crore. Both of SRK’s films got a good response in the international market, so much so that both of them grossed over USD 10 million. Only four films had managed this feat last year -- Dangal, Sultan, Ae Dil Hai Mushkil and Fan.
Coming in at fourth on the list of highest grossers overseas was Salman Khan’s Tubelight, which had let many of his fans in India down but minted USD 8 million (around Rs 51.21 crore) overseas.
There were other instances of worldwide collections turning around the financial performance of a film this year, apart from the ones mentioned above. One such instance was when Aamir Khan's Dangal failed to beat Baahubali: The Conclusion in domestic collections but overtook it after having a spectacular run in neighbouring China.
To be sure, Baahubali: The Conclusion did not tank in the overseas market, having earned Rs 91.93 crore outside India. This took its worldwide total to more than Rs 1,500 crore.
Golmaal Again took the fifth spot on the list, earning Rs 46.15 crore overseas, followed by Secret Superstar, which raked in Rs 40.90 crore, Judwaa 2, which earned Rs 36.55 crore, Badrinath ki Dulhania, which collected Rs 34.76 crore, and Kaabil, which made Rs 32.52 crore. At the tenth spot on the list was Toilet, which earned around Rs 32 crore overseas.
The international market holds a lot of significance for Indian films, contributing to a significant portion of a film's revenue. The FICCI report pointed out that over the next five years, this segment is expected grow at a CAGR of 7 percent on the back of an increase in the number of movies, both Hindi and vernacular ones, travelling to overseas markets.