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
Jio Studios unveils AI-powered Krishna teaser at NAB Show 2026
Global first look of Krishna uses Galleri5 AI pipeline on Azure, Historyverse slate as Jio’s Dhurandhar crosses Rs 3,000cr worldwide.
MUMBAI: Krishna has just dropped a divine teaser and this time the gods are powered by silicon, not just scripture. Jio Studios and Collective Studios’ Historyverse stole the spotlight at the NAB Show 2026 in Las Vegas with the world’s first teaser for their upcoming theatrical feature Krishna, directed by Manu Anand. The big reveal happened during Microsoft’s keynote “Powering Intelligent Media, From AI Experimentation to Real-World Impact,” where the film’s AI-native production pipeline took centre stage alongside Collective Artists Network’s in-house platform, Galleri5.
At the heart of this mythological spectacle lies a fresh cinematic workflow built by Galleri5 on Microsoft Azure’s advanced AI and cloud infrastructure. Forget bolting AI onto traditional VFX or animation, this is an end-to-end, production-grade system woven into every layer: world-building, character creation, shot design and final output. Yet the storytelling remains firmly director-led, emphasising emotional depth, stillness, music and performance rather than pure spectacle. The result? Large-format theatrical cinema rooted in Indian history and culture, but conceived in ways that were simply not possible before.
Collective Artists Network runs Galleri5 natively on Azure, leveraging Microsoft Foundry and cutting-edge AI tools to handle film, episodic and advertising workflows in a secure enterprise environment. Microsoft highlighted Collective as a “Frontier” organisation successfully moving AI from pilot projects to real production-scale deployment in cinema. The technology is also on display at Microsoft’s NAB booth in the West Hall (Booth W1731).
Jio Studios (Media & Content Business, Reliance Industries), president Jyoti Deshpande said the project advances the studio’s mission to take Indian stories global with scale, ambition and authenticity, “With Krishna, we are embracing cutting-edge AI-led filmmaking while democratising these tools to make them more accessible, intuitive and cost-effective for storytellers everywhere.”
Collective Artists Network founder & group CEO Vijay Subramaniam added, “We’re using technology developed in India to carry our culture and history to audiences worldwide at a scale never seen before.”
Microsoft, vice president for telco media & entertainment, gaming Silvia Candiani noted that the media industry has reached an inflection point, “AI is no longer about experimentation but delivering real impact at production scale… By building AI-native creative systems on Microsoft Azure, Collective exemplifies how storytellers can unlock new formats, move faster and realise a true return on intelligence while keeping human creativity at the centre.”
Krishna forms part of Historyverse, Collective Studios’ ambitious slate of history and culture-driven IPs. The slate draws from iconic figures and traditions that shaped the Indian subcontinent, including stories inspired by Kali, Karna and Durga. It builds on the already-released Mahabharat: Ek Dharmayudh series, showing how ancient narratives can be reimagined for modern screens.
Jio Studios, India’s leading content studio and the media and content arm of Reliance Industries, continues its blockbuster run. The studio’s Dhurandhar franchise led by Dhurandhar and Dhurandhar: The Revenge has become the first Indian film series to cross Rs 3,000 crore worldwide. It also delivered three consecutive years of India’s highest-grossing Hindi films: Stree 2 (2024), Dhurandhar (2025) and Dhurandhar: The Revenge (2026). In just eight years, Jio Studios has assembled a library of over 160 films and series, with more than 60 titles winning over 500 awards. Other notable successes include Laapataa Ladies (India’s official Oscar entry 2025), Stree, Article 370, Shaitaan and Mrs.
The NAB unveiling marks another step in Jio Studios and Collective’s push to blend Indian storytelling talent with frontier technology proving that the future of cinema may well be both ancient in spirit and thoroughly modern in execution. For audiences who love epic tales with a fresh twist, Krishna promises to deliver divine drama, this time with a little help from the cloud.
