Piracy In Indian Film Industry
BUSINESS ECONOMICS|October 1 - 15, 2018

The Indian film industry is one of the largest film industries in the world. Around 1000 films are produced each year in India. It earns around $2 billion from legitimate sources such as screening at theatres, home videos and television rights.

Aritra Mitra
Piracy In Indian Film Industry

However, according to industry sources, the clandestine film piracy industry earns around $2.7 billion. Red Chillies Entertainment, a production house promoted by actor Shah Rukh Khan, was a victim of film piracy for its film ‘Dilwale’ in 2016. It grossed 148 crore at the box office but its pirated version, circulated a day before its release, accounted for more earnings. Films like Kaabil, Great Grand Masti and Udta Punjab have all faced a similar fate. Uday Singh, Managing Director, Motion Picture Distributors’ Association (India), said, “Content theft or piracy in the film industry originates from ‘camcording’ in cinema halls.”

Effects of piracy on the Indian film industry

Uday Singh informed that the infringed copies appear online within a few hours of a film’s release. He added, “The Indian film industry loses around 18000 crore ($2.7 billion) and over 60,000 jobs every year because of piracy.” This is also the figure that the World Intellectual Property Organisation (WIPO) brandishes in its magazine, quoting noted filmmaker Anurag Basu. According to the latest KPMG-FICCI report on the Indian media and entertainment sector, the Indian film industry is projected to grow from 138.2 billion ($2.09 billion) in 2015 to 226.3 billion ($3.43 billion) by 2020 at an annual growth rate of 10.5%. But piracy could also grow exponentially unless it is checked.

Origin of pirated copies

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