Hindi
Hollywood studios take $2bn hit on new movies in 2006
MUMBAI: London based media analyst firm Screen Digest has launched Global Media Intelligence (GMI), a new division dedicated to delivering high quality research and analysis to institutional investors in the US.
GMI‘s latest report – ‘Do Movies Make Money‘ – published projects that after five years of exploitation across all global media, the 132 medium-to-big budget films released by the leading US studios in 2006 will produce a loss of $1.9 billion pre-tax. This compares to a profit of $2.2 billion for the new releases of 2004.
Despite a recent surge in box office returns, GMI believes that the movie business has seen costs rising faster than revenue for the past several years.
Revenues from DVD sales, which accounted for 75 per cent of growth and significant profits from 1999 to 2004, have experienced a worldwide decline over the past three years. A detailed title-by-title analysis was carried out for this report which shows the trend accelerating further in the first half of 2007 with US DVD sales down 12.5 per cent from 2006. International sales mirrored this decline.
Some executives in the Hollywood studios are looking to the new technologies of Video on Demand (VoD) and subscription based TV to fill the gap left by DVD. However, GMI estimates that while VoD will offer a superior share of the consumer dollar over traditional pay channels (60 per cent versus 40 per cent), it will not deliver at the lofty levels predicted in the early days of the industry and will not help the studios put ‘old wine in new bottles.‘
Financing films has also become a major concern. Until recently, the industry used to generate its own capital entirely from internal sources. However since 2004 when revenues started to decline, the industry has been forced to seek outside financing, mostly from hedge funds and private equity. GMI believes that this source of capital will not be available on the attractive terms that until recently prevailed. Sophisticated investors are becoming aware of just how thin, or even non-existent, movie profit margins can be.
One of the biggest sources of increasing costs is for the stars of the movies, particularly the ‘gross participations‘ paid to top actors, directors and producers. These costs totalled $3 billion in 2006 – nearly double that of five years ago. While the studios are currently in negotiations with writers, actors and directors over fees, these salaries are not the main issue; the current cost of producing, casting and advertising movies in the present environment simply exceeds the likely returns.
Roger Smith, author of the report believes the outlook is bleak. “Our analysis of the business of the Hollywood studios may come as a surprise to investors and even some people within the industry. We believe there is little chance of the negative revenue trend reversing in the coming years.
“New technology will not deliver anything like the revenue initially predicted, and as DVD sales continue to decline and the cost if making movies increases, the message is simple: the Hollywood studio‘s must begin a serious attempt to reign in costs, like News Corporation‘s Fox have done, if they are to survive.”
Hindi
Remembering Gyan Sahay, the lens behind film, television and advertising
From a puppet rabbit selling poppadums to Hindi cinema, he framed it all.
MUMBAI: There are careers, and then there are canvases. Gyan Sahay, the veteran cinematographer, director, and producer who passed away on 10 March 2026 in Mumbai, had one of the latter. Over several decades in the Indian film and television industry, he turned lenses, lights, and the occasional puppet rabbit into something approaching art.
A graduate of the Film and Television Institute of India (FTII) in Pune, Sahay built his reputation as a director of photography across a career that stretched from the early 1970s all the way to the digital age. He was the kind of craftsman who understood that a well-composed shot is not merely a technical achievement but a quiet act of storytelling.
For most Indians of a certain age, however, Sahay will forever be the man behind the rabbit. His direction of the iconic long-running television commercial for Lijjat Papad, featuring its now-legendary puppet bunny, gave the country one of its most cheerfully persistent advertising images. It was the sort of work that sneaks into the national subconscious and takes up permanent residence.
His big-screen credits as cinematographer include Anokhi Pehchan (1972), Pagli (1974), Pas de Deux (1981), and Hum Farishte Nahin (1988). In 1999, he stepped behind a different kind of camera altogether, making his directorial debut with Sar Ankhon Par, a drama that featured Vikas Bhalla and Shruti Ulfat, with a cameo by Shah Rukh Khan for good measure.
On television, Sahay was particularly prized for his command of multi-camera production setups, a skill that made him a go-to technician for large-scale shows and reality programmes. In an industry that has never been especially patient with complexity, he was the calm hand on the rig.
In later life, Sahay turned teacher. He participated regularly in masterclasses and Digi-Talks, often hosted by organisations such as Bharatiya Chitra Sadhna, sharing hard-won wisdom on cinematography, the comedy of timing in a shot, and the sweeping changes brought by the shift from celluloid to digital. He was also said to have been involved in a project concerning a biographical film on Infosys co-founder N.R. Narayana Murthy.
Tributes from the film industry poured in following the news of his passing, with colleagues remembering him as a senior cameraman who served as a rare bridge between two entirely different eras of Indian cinema. That is, perhaps, the finest thing one can say of any craftsman: he kept up, and he brought others along with him.
