Yash Raj Films, UTV are other entertainment conglomerates in the making

Yash Raj Films, UTV are other entertainment conglomerates in the making. Yash Raj Films can be called the pioneers of promoting a corporate like structure of the Bollywood industry, which is today inching closer towards more professionalism and corporatisation. Movie marketing, selling of various rights, savvy promotions have become commonplace and even small-budget films are now making money. Thanks to production houses like Sahara One Motion Pictures, PNC, UTV et al which are ready to sponsor low-onbudget but high-on-quality films. Ronnie Swrewvala of UTV seems to have got the synergy funda pretty clear in his mind, he is producing and distributing Indian and foreign films, has plans to launch 8 TV channels and is also gung-ho about digital and mobile content. Meanwhile, Yash Raj has recently tied up with Microsoft to uplift its internet offerings and with Walt Disney to produce animated movies. Moreover, grapevine has it that Yash Raj is in advanced talks with Mukesh Ambani to set up a chain of multiplexes in the country. What is also seems to be evolving slowly is the studio model in Bollywood given the initiatives of Yash Raj Films, UTV Motion Pictures and Adlabs in signing stars and producers. Given all these recent changes, things have surely started looking up for Bollywood which was once in shambles.

Not just in tinsel town, the whole media and entertainment industry is going through a transition. Some of the challenges that face the industry are low internet connectivity and the spectrum crunch which might hinder its future growth. With so much happening, no one knows what model the industry will finally evolve itself into. However, rise of conglomerates seems inevitable and diversification and consolidation will be the way the go.

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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative