Hollywood and Bollywood, the world’s largest movie industries, have signed a deal that will boost cooperation for producing and distributing their films.
The "historic declaration" inked on Wednesday between the city of Los Angeles and the Indian film industry strengthens commercial ties and will move to increase the number of Indian productions that are filmed here, the Motion Picture Association of America said.
The two industries account for the majority of the world’s cinema. Representing the Indian delegation, producer Bobby Bedi praised the pact’s potential, noting how Hollywood and Bollywood "represent significant economic and cultural interests of their respective countries".
Analysts also point out that India’s movie industry potential is huge. India’s film and television industry generated revenue of $7.7 billion in 2008 and the figure is expected to top $13 billion by 2015, according to a study by consultancy PricewaterhouseCoopers.
The figures are dwarfed by the major Hollwood studios’ total annual revenue of around 40 billion dollars, but the film audience on the subcontinent dwarfs its western counterpart. Last year, some three billion cinema tickets were sold in India, compared with 1.5 billion in the US, according to a Crisil media and entertainment report.