Really bad time for business in Bollywood
Perhaps you have heard many times that Bollywood movies are the number one source of entertainment for people in India. Bollywood is very popular in South Asia and Middle East too. So, there is a lot of money involved in this industry. Mehdi Hassan has written an excellent article in South Asia Blog and I am quoting small part from the entry.
After seeing an unprecedented growth Bollywood took a major blow in 2008. Because of the credit crunch, production houses cut their budgets and went for major overhaul. Banks and corporations, who previously invested in movies, scrapped many projects due to tight budget.
Normally, it takes around 40-50 crore to produce a high profile movie and Rs.5-15 crore for a medium budget movie. Reliance Big Entertainment, Mukta Arts, Studio 18 are some of the top production houses who produced majority of the high-profile movies in the last couple of years. They lost 50-80% of their capital in the last one year. The situation became further worse when high budget movies like Drona and Yuvraaj failed at the box office last year.
