Debate

CORPORATE ENTRY INTO FILMMAKING: Are the producers running scared?

The corporate culture appears to be on the threshold of engulfing filmdom. As many as 20 film companies have applied to the Securities and Exchange Board of India (SEBI), the regulatory body for public issues, for floating their companies in the share market. Foreign film companies also seem to have an eye on the Indian market. These foreign companies will not only bring in the much-needed finance but also discipline and new technology to the production sector.

The number of applicants to SEBI is bound to increase in the near future because almost every film producer worth his name is thinking in terms of corporatising his company because of the prospects for a better future in terms of disciplined working, easy financial resources and vast marketing potential. Corporatisation is not merely confined to the production sector alone. It seems to be embracing the field of exhibition also. Already, investors are planning multiplexes, hoping that, sooner or later, each state government will declare its policy towards multiplexes in order to augment its revenues.

The expectation is that during the next next 18 months not less than 1000 cinemas will spring up as a result of multiplexes cleared by the state governments. That would lead to increase in revenue and consequently, change the entire structure of filmdom and put an end to the present haphazard manner of functioning of the production sector.
In the context of this changing scenario, plus the unexpected plunge by Pantaloon, a company which managed the production of Hollywood’s Everest Pictures’ Monsoon, into the production of a Hindi film, Na Tum Jano Na Hum through its media and entertainment outfit, PHF Entertainment Ltd (PFHEL), SCREEN spoke to a cross-section of filmmakers on the implications and possible repercussions.

Right from Subhash Ghai, Yash Chopra, Yash Johar, Tips, Venus, Universal, Creative Eye, Ajay Devgan, Zee TV and Sony, to name only a few, expressed themselves in favour of streamlining the industry through corporatisation, enthused as they are by the deliberations and conclusions at the recent international conference on business of entertainment organised by Federation of Indian Chambers of Commerce and Industries (FICCI).

EVERYBODY’S WELCOME
GP Sippy
Vetran GP Sippy, whose grandsons are all set to corporatise their company, welcomed the entry of big corporates into film business. “The whole field is open to them. The film industry is too big to resent anybody’s entry because it can absorb any number of people.

Corporate bodies are welcome because they will bring in more money and better working methods,” he said but cautioned: “They (corporate people) should know that there is no formula for a successful movie. We keep trying to make a good movie. Sometimes we succeed, sometimes we don’t. Everything has to be viewed in its proper perspective.”

CORPORATES OUGHT TO TIE UP WITH FILMFOLK
Mukesh Bhatt
“Pantaloon’s entry into filmmaking is a healthy sign. But the corporate sector must realise that film production is an altogether different ballgame. Film production is a specialised job and in order to succeed, they will have to tie-up with film professionals. Even in Hollywood, it is happening. The Japanese, who pumped in tons of money in Hollywood, used the experience of local filmmakers to achieve their goals. Nearer home, Bharat Shah keeps funding film production experts who deliver the goods. The corporate companies should join hands with film professionals and share profits with them rather than venture on their own. We all know what happened to actors like Amitabh Bachchan, Jackie Shroff, Salman Khan, Shah Rukh Khan and Sunny Deol who ventured into film production on their own. Since they did not know much about film production, they ended up paying double the money to everyone. So let not a few corporate companies which intend to make films go back with bitter experience.”

INTRODUCE FRESH TALENT
Shabnam Kapoor
“Every decade has thrown up a new breed of filmmakers. In recent times, music companies ventured into film production. Now we have the corporates. They are welcome. But their entry will benefit the industry only if they encourage new artistes and filmmakers. But if they rely on the present stars, they will be no different from the existing big producers who never try to introduce new faces,” says producer Shabnam Kapoor.

PROFITS HOLD THE KEY
Mehul Kumar
“If the corporate companies are entering films hoping to take over the industry, they will not succeed. In fact, nobody can buy it as past experience shows. Everybody is talking about entering the share market, not knowing that one has to show five years of profitability. No one buys shares blindly. Investors rely on past performance of every company in which they buy shares. Television companies can enter the share market because they can claim profitability on the basis of their regular and steady incomes. This is not the case with film companies,” warns filmmaker Mehul Kumar.

STAR PRICES MAY GO UP
Manoj Munot
“The entry of the corporate sector in films will not pose a threat to small producers. As a result of its entry, only the prices of stars and technicians may go up. By and large, the film industry will grow because of the big money it will pump into filmmaking,” says producer Manoj Munot, who is also the vice president of the Western India Film Producers’ Association.

IT’S THE WAY IT SHOULD BE
Amit Khanna
“Corporatisation is the in thing. It is the future. More than 20 producers have applied to SEBI. They include Subhash Ghai, Yash Chopra, Yash Johar, Tips, Dheeraj Kumar and Ajay Devgan. More will follow. Proper planning in film production is a must. It can come with the entry of the corporate culture. Producers must think in terms of corporatising. That was emphasised at the FICCI Conference. Zee TV and Sony are also entering film production. Universal is already there. Boney Kapoor and Mukesh Bhatt are planning to corporatise their companies. So are Anil Kapoor with Satish Kaushik and Mani Ratnam. With the entry of corporates, haphazard film making will come to an end,” hopes Amit Khanna.

THE TEAM’S IMPORTANT
Bharat Shah
“The corporate companies will have to select dependable and well-known directors to make their films. If they choose the wrong people, they will soon find themselves in trouble since they are not aware of the intricacies involved in film production, which is a risky business,” feels presenter Bharat Shah.

SEEK PROFESSIONAL HELP
Tolu Bajaj
“Personally, it is my view that the corporates should join hands with experienced film people. Our industry is so complex that it takes years for a new entrant to understand it. That is why it is necessary for a new corporate entrant to rely on the experience of the existing film professionals. This is a must, be it film production, distribution or exhibition,” says distributor Tolu Bajaj.

THE MORE THE MERRIER
Shyam Shroff
“If the corporates like Pantaloon enter film business it’s good for the industry. More corporate companies should emulate it. The business of films is expanding. We now have new markets in countries like Israel, South Korea and Japan. Rajnikant’s film Muthu has opened up a market for Tamil films in Japan. Hindi film producers should also tap these and other new markets,” says financier Shyam Shroff.

ALL FOR THE GOOD
Ganesh Jain
“The industry will only benefit by corporate entry. It will help the artistes and technicians who will earn more money. The corporates will enter not only with big money but will also bring in discipline. Their entry is welcome because it will prove beneficial in the long run. The corporate sector’s entry will also ensure timely governmental help, as also assistance from banks and insurance companies,” says Ganesh Jain of Venus.

MSM Desai