A few deals in the past have opened the window for new alliances between the Indian film industry and Hollywood. After Anil Ambani?s Big Entertainment signed a $825-million deal with Hollywood film maker Steven Spielberg and Hollywood director Danny Boyle spun Oscar magic with Slumdog Millionaire, it is now the turn of an Indian visual effects and animation company to embark on a Hollywood sojourn. Tata Elxsi, part of the Tata Group, is expanding its visual computing labs (VCL) to Los Angeles, which will be its visual effects (VFX) studio. Analysts feel that co-production deals with the US, the UK and Europe will change the face of film business in India.
Experts say that co-production alliances take place so that one partner can use the business network of the other in order to overcome funding issues, gain technical expertise and improve brand name.
Smita Jha, associate director, PwC, said, ?In India, the pool of talent in production houses is limited. Associations with international players help bring in expertise of renowned experts in film space and equipment along with good money earned as revenues.?
PVR Pictures has recently signed a distribution deal with Summit Entertainment, a production house of the US, for Twilight- New Moon and a few other of its titles. PVR has also inked pacts with US-based production houses, GK Films and Focus Features, with plans to distribute 100 films in the next three years.
Ranjan Singh, worldwide marketing head, PVR Pictures, said, ?The co-production collaborations are a strategy to increase the communication base between two countries. Hollywood studios are increasingly opting for Indian distributors in an attempt to reach crossover markets like Asia and India and cut across different segments of audience. This helps Indian independent studios get bigger.?
Tata Elxsi has invested around $5 million in the new VFX studio and roped in three Hollywood VFX veterans–Joel Hynek, Tricia Ashford and Treva Blue–to operate there. Looking at the increasing demand of VFX in Hollywood, the new studio is specifically designed for film and television production companies based in the US and aims to provide its clients? various services in a cost effective way.
This is Tata Elxsi?s third overseas service centre, the first two being in Tokyo and the UK. The company will be signing a Hollywood deal next month.
After experiencing success in its Hollywood ventures like The Happening and The Namesake, UTV grabbed distribution rights of Disney?s Hollywood content for the Indian market this year. The company has also signed a foreign sales deal with a Madrid-based film sales company for its ExTerminators, starring Heather Graham. The movie is estimated to have cost $2 million and is UTV?s first independent production in the US.
Madhukar Dev, MD, Tata Elxsi, said, ?Hollywood players outsource their work to India because of lower costs, while Indian producers approach international players because of their expertise and knowledge. Where a Hollywood film spends around $1 million-$90 million on VFX, Indian players spend a small amount on this and the remaining is spent on co-producer.?
This year, various Hindi films saw participation of foreign actors. While Chandini Chowk to China had Chinese actors, Shree Ashtavinayak?s Blue had Hollywood actor Kylie Minogue. This year?s release Kambakht Ishq had Hollywood biggies like Sylvester Stallone, Denise Richards, Brandon Routh and Holly Valance.
