New PLC management – Kites and Bollywood

Didn’t take long for the pundits to pronounce Kites a dud.  One assumes that the production machinery behind the movie had that figured out pretty early on.  Which is why they went overboard on the distribution front – opening in 2000 screens in India and 500 overseas.  The logic is pretty simple.  The critic reviews come out during the first weekend.  Go overboard on marketing and ensure that there is huge interest – and advance bookings – for the movie.  Make sure there is plentiful supply (as in screens) across the country and for the somewhat gullible NRI market.  Cash in on the first weekend (before anyone has had time to judge the product).  Keep your fingers crossed during the second and (hopefully) third week.  Move quickly to the international TV release.  Get the DVDs out in a month or so.  Cut prices on the DVDs in one more month.  Then milk the long tail of music and video rights.

Its a model that is borrowed from Hollywood and perfected in Bollywood (I prefer not to call it the Indian film industry :)).  I say perfected in Bollywood for the speed with which the industry moves to TV, DVD and price cuts.  The public is still suffering the after effects of the marketing blitz.  And the pirates aren’t given enough time or margins to capitalise on a new release.  Which means the producer can maximise the RoI on the movie.

Its a lesson in new PLC management – where speed and scale are of the essence.