Financial Crisis Pinches Bollywood Too bollywood news

Financial Crisis Pinches Bollywood Too

The fumes of the global economic meltdown
have started effecting Bollywood big time as major
production houses start cost-cutting.Apparently, T-Series
CEO Bhushan Kumar has asked Director Pooja Bhatt to reduce
the budget of her Himesh Reshammiya starring Kajra Re. The
production house is also reconsidering its projects that are
starring expensive stars like Salman Khan and Akshay Kumar.

Bollywood trade analyst Komal Nahata
confirms, “The slowdown has been felt in the industry
rather slowly, but it has now caught up with it…However,
it is difficult to say whether this has happened as a
result of the global impact or due to the box-office
disasters of recent big-budget movies, like Drona, Kidnap
and Karzzz. But a sense of insecurity now pervades all
production concerns, more so in Bollywood’s corporates
houses.”

Director of a production house called
Percept Picture also added saying, “Recently, two Bollywood
corporate houses incurred losses to the tune of Rs 160 crore
and Rs 60 crore, respectively. Naturally both have now put
on hold their planned acquisitions. This was bound to
happen. But it has happened sooner than we expected.”

Kishore Lulla of Eros International
explains, “Look, with the liquidity crunch in the market,
people now have less disposable income and so they will
now spend less on luxury and entertainment - which means
the movie-going clientele will decrease and so will the
box-office collections.

“This will first affect the exhibition
and distribution sector and consequently the production
sector as it will have less money coming in from the two
main sources - film exhibition and distribution. With less
money on hand, producers will be forced to cut cost before
the system gets corrected.”

Sad!!!