Is Bollywood a Bubble?

This is in response to the article that was published today in the Indian Express website titled “With few 3 Idiots, Bollywood wiser, thinner”. It talks about the recession in Bollywood and how the film houses have started working on revised budget. This brings the question of how far the Producers are aware of the ground reality in producing a movie.

The Cost of movie-making in Bollywood has grown enormously over the years. The cost of production and distribution has pushed the ticket price higher as well. For some movie-goers it is a question of affordability and for some it is a question of priority of their expense.

Earlier the Producer had to shell his own money. Then came a period where the Producers were able to borrow money from Financiers. This made them spend little bit more on their films. Now banks have started giving loans for producing films. Surely, the Producers and Directors have gotten into the habit of spending more than required for a movie.

A good story, few crores to book leading names backed with good project report can get you a Bank Loan and you too can become a Producer. Bubbles are normally built when those who cannot afford start getting into it. Bollywood is no different. I am not surprised that Producers are doing some reality check. I would not be surprised if actors move from fixed fee to a variable component, taking with them a portion of the upside, should the movies do well.

The major cost of a Film is the casting and crew. This has been sky rocketing based on the Box Office outcome of the respective actors and Technicians previous films. Another important component is the Production Expenses. Much can be done to control this as well.

The Indian Film Industry has been spending Billions of rupees every year in making films and only few have managed to get back the capital. This is very concerning for the future of the Industry.

Vidhu Vinod Chopra has been rolling out a series of Box Office Hits. Part of the success should be contributed to the Story line, Casting and Marketing. The other part, which many might not be aware off, is the control he has on the Production expenses. He has good people like Anil Dawda, who manage this important and crucial component.

If sources are to be believed, Anil Dawda managed to conduct the class room scene in Munna Bhai M.B.B.S. by just sponsoring a PC and Printer to the Students union office. In addition to this he actually organized a whole set of students from within the College to act in the scenes. People in the Industry would know how much it would cost if they have to organize that many side actors to act as students. This is just a small example of how cost conscience he has been.

I was involved in remaking the same film in Tamil and Kannada as Financial Controller and know for fact the cost involved for these scenes. I was bold enough to buy the complete materials required to build a class room set, against the suggestion of the Art Director who wanted me to rent the same materials. The logic in my case was very simple and easy. We were producing the same movie in 3 languages, Telugu, Tamil and Kannada and it was easier for me to reuse the same material to build the same set for all the 3 movies.

I have always had the doubt if Producers really are aware of the expenses that are incurred. Only if you know how the money is spent, you can think of how to control it.

Hindi Films often take a long time to complete. Even if the Producers have the required funds to complete the film. It is true that the number of schedules depend on the availability of the Actors and Technicians, but planning also reduces the time gap between the schedules. If there are fewer schedules and lesser time between the schedules one can negotiate better with the companies that provide Cameras, Lights, Units, Cars, etc. Planning is the key to all this, both operational and financial.

Before the start of the shoot, a complete plan of the Scenes should be ready. Time should be spent to plan the day-wise schedule of scenes to be shot, taking into consideration the availability of actors and technicians. Scenes that do not require the lead actors should be clubbed together. To call an actor, lead or otherwise, for many days, just to shoot for few hours on each day is absolute nonsense.

The Production Team should have a PC in the shooting spot with Printer. The shooting plan should be fed in this PC. Before the pack-up is done, the Program sheet for the next day should be printed and distributed to the Actors and Technicians present in the location. If this is not done, then one has to send a Production Executive to the actors house after the pack-up and deliver the Program Sheet for the next day. This incurs extra cost.

Another important aspect is the process of finalizing shooting locations. Often, the Production Manager asks one Production executive to go and visit different locations that would fit the scene requirement. Once he short lists the locations, an assistant of the Art Director visits the short listed locations and then the locations are explained to the Director. Who might also send his assistant to check out the locations. This exercise is highly time consuming and costs lot of money. Use of Video Cameras and a visit by Production Executive, Assistants of Art Director and Director, together will reduce this cost.

Vehicle Hire is another un-noticed expense. In many cases a big banner film has many cars hired on a daily basis to commute the Actors, Technicians, Juniors, etc. Once the Vehicles bring these people to the shooting location, they are idle and are used for unnecessary trips. It is better to allow the Actors, Technicians and Juniors to make their own travel arrangements and pay them a fixed conveyance depending on their category. This will save many hidden costs (Car Hire, Fuel, Driver Bata, Food for Driver, etc) that comes with the Vehicle Hire. At the max it is enough if a car or two is hired for other Production related visits.

A master list of Set Properties has to be prepared in advance. Depending on the number of days such properties will be in shoot, a decision has to be made whether it is better to purchase the set properties or take on rental. Anything that needs to be purchased, should be done in one lot thereby saving time on frequent purchase visits. This also gives a good bargaining power while purchasing. Only the set properties that need to be taken on rental can be done a day before the actual shoot.

With the use of Video, TV and Nagra in the shoot on a daily basis, it is basic common sense to know that we need batteries for the Remote. How often we find the batteries going dead and then people are rushed to the nearby shop to buy batteries. If one knows how many days the batteries would last, it would be easier to calculate how many batteries are required. The same can be purchased in bulk in whole sale. This is a very minor cost saving but I have mentioned this as an example.

Food expense is a major contributor to the Production Expenses. I really don’t understand why several dishes are offered for Breakfast, Lunch and evening Snacks. Everyday tens of thousands are spent on this. I have seen some production houses have as many as 10 items for breakfast. Limit the items to 3 or 4. It is cost effective and can avoid wastage as well. The production team should know how many servings can be made out of a carrier of Food. Food should be ordered based on that and the invoice brought by the caterer should be strictly monitored. On a day when we have a scene which involves lot of crowd, better to opt to avoid costly non-vegetarian items on the menu.

Everyday tens of thousands are spent on food expenses and hence it is important that the Production Team monitors this expense. During my film days, even though I was the Financial Controller, I was there everyday in the shooting location and I made it compulsory that I have to counter sign all bills that are passed by the Production Manager before it is paid by the cashier in the shooting location. Everyday, we used to knock off 15%-20% from whatever Invoice the Caterer was giving us. He was complaining everyday but he was ready to supply for the next day. I had a rough head count of people present for breakfast and lunch and I was willing to pay him only based on that. I never paid him based on what he brought because he would take them all back once the session is over. Chances are he might sell it somewhere else.

People in the Industry would by now realize that shooting a song sequence abroad is not only visually pleasant but also very cheap. When a song sequence is shot locally, it brings in lot of crew, technicians, assistants, etc to the shooting spot. The team that goes abroad for shooting a song sequence is very small. A lead might come with a touch-up, driver, assistants for a normal local shoot. Whereas on a foreign tour he would come only with a make-up assistant. If it is duet and if the pair is understanding, we can even have one make-up person for both. Same is the case with dance masters and Directors. One can shoot almost two songs abroad for the cost of shooting one song locally.

Directors want to narrate the story as a film, closest to the way they have in their mind/dream. This business of creation cannot be restricted to finances. But at times Directors might tend to push things way beyond what it is required. For Example, a director might say that he requires x number of people for a crowded scene or x number of cars for a car chase fight scene, etc. If the Producers are reluctant for such extra expenses, the Directors are likely to say that the Producers should not blame the Directors if the film does not do well. So it is little bit tricky. A producer once told me that his Director asked him to bring 1000 people and in turn the Producer brought only 300 odd and after a lot of argument and bitter taste, the Director agreed half-heartedly. This film did well in the Box office. The directors need to have a clear understanding of the cost and its implications. Producers should find a way to convince the director whenever the director might stretch things a little too far.

Art Directors might also push things a little bit in the name of creativity. Before making a set, a budget for the set has to be given by the Art Director and a final budget has to be agreed between the Art Director and the Producer. After all, our Art Directors are capable of building the same sets for 500K and 5 Mln. Generally Directors and Art Directors will form a team and it would be difficult and tough for the Producer to overcome this team in finalizing a budget for the Set.

Costumes are another area where lot of money could be spent and lost. I hope, you understand the difference between spent and lost. The Leads would want only Branded costumes, irrespective of their role in the film. In most cases the Costume designers will have discussion with director on the type of costumes and will go with one of the Production executives to do the shopping to their known shops. It is highly possible that they get a markup or cut on every purchase they make in that shops. It would be better if a person from the Producer takes the Costume designer to the shop of his choice to bargain first hand and gets discounts. The Producer should get back all the costumes used in the film, including the ones used by the Leads. The ones worn by the leads can be auctioned and the others items can be re-used to other films or even considered for sale to another unit if it suits them.

There are many other issues ranging from control on cans to lights required. An MBA might not be able to understand the language of the industry or the tricks of the trade. The Producers should have a reliable person from their side to be present in the shooting spot to monitor the expenses and to do all the shopping. This is the only way leakage and extras can be avoided.

The Directors should also understand that film should be made within reasonable budgets so that it is more saleable. Increasing the cost is not serving anyone commercially. Producers will like Directors and Technicians who can make films cost effectively. This is the only thing that can protect them to an extent on the down-side.

The Actors should also consider having a deal with producers to have a nominal fee for acting and a percentage of profits. This mechanism would allow the Actors to get lot of money if the film does well. Until everyone involved in the film-making realize the cost factors seriously, the bubble will be building gradually and when it burst it will be very nasty.

I had spent some time with few Production Managers and with people like Anil Dawda on few occasions. I wanted to build a portal which would contain information about Shooting locations, Application forms for various approvals, Draft Agreements, etc. I am out of the Industry and out of the Country now and hence not so keen in involving myself in this. May be a group of Production Managers are like minded people can put all their experience and build one such portal. This will help one and all in the Industry.

Costing is the key for films and the only one which is controllable. The performance of the film is left in the hands of the viewers. People in the industry should take note of it and contribute in every little way possible so that all films produced cover their cost. Lets hope the Film Industry starts spending meaningfully and save producers.