BOLLYWOOD INVESTS IN HOLLYWOOD

RELIANCE ENTERTAINMENT

Reliance Entertainment is a wholly owned subsidiary of the Reliance Anil Dhirubhai Ambani Group

core focus is to build significant presence for Reliance in the Entertainment eco-system

. Movies, Music, Sports, Gaming, Internet & mobile portals, leading to direct opportunities in delivery across the emerging digital distribution platforms: digital cinema, DTH and Mobile TV.

SUBSIDIARIESBig 92.7 FM Big TV Big Music BIGFlix Bigadda DreamWorks Pictures Zapak Adlabs Films Jump Games (ParadoX Studios) Big Entertainment BIG Cinemas Big Motion Pictures Big Animation (AniRights Infomedia) Big Music & Home Entertainment

FOR RELIANCE, ENTERTAINMENT MEANS SERIOUS BUSINESS

Reliance Entertainment Plans 20 Channels, 8 Websites Including Job Portal, Classifieds

ACQUIRED Adlabs Films Limited in 2005, one of the largest entertainment companies in India, which has interests in film processing, production, exhibition & digital cinema.

also announced a plan to invest $300 million into Indian-based film productions by December 2010

Reliance ADA Group's media and entertainment business owns 428 cinema screens in India, the United States, Malaysia and Mauritius.

Adlabs Films Ltd: 

Adlabs Films Limited is India’s fastest growing film and entertainment services company. Film Services: Motion Picture Processing and DI, Film Restoration, Digital Mastering, Studios and Equipment rentals.

Adlabs Films also operates India's largest cinema chain with about 400 screens spread across India, US and Malaysia.

BIG CinemasBIG Cinemas, a division of Adlabs Films Limited is India’s largest cinema chain with about 400 screens spread across India, US and Malaysia. After pioneering the IMAX experience in India, it recently launched 3D and 6D technology and is the only cinema chain to screen films in all three formats. It is also launching the first megaplexes in the country.

HOLLYWOOD, HERE I COME, SAYS ANIL AMBANI

Anil Ambani’s Reliance Big Entertainment in Hollywood

RELIANCE ENTERTAINMENT EXPANDS ITS HOLLYWOOD PRESENCE

has signed deals with Julia Roberts’ Red Om Films and Brett Ratner’s Rat Entertainment

.

signed a deal with DreamWorks SKG for a new $1.2 billion film company, also has separate deals with seven Hollywood production houses run by A-list actors, including George Clooney, Brad Pitt and Tom Hanks.

may co-finance projects with the nine Hollywood production houses.

acquired DTS Digital Images, a digital film restoration company based in Burbank, California.

ANIL AMBANI’S RELIANCE BIG ENTERTAINMENT IN HOLLYWOOD

Anil Ambani group's Reliance Entertainment and DreamWorks SKG of acclaimed director Steven Spielberg have completed the much-talked about deal for jointly making Hollywood films.

Steven Spielberg, has finally closed a deal to secure $825 million in funding from India’s Reliance Big Entertainment, JPMorgan and The Walt Disney Co.

.

The deal represents a huge investment by Bollywood in Hollywood, and sets up DreamWorks Studios to produce about six movies a year to be distributed by Disney starting in late 2010

THE CORNERSTONE OF OUR HOLLYWOOD STRATEGY AS WE GROW OUR FILM INTERESTS ACROSS THE GLOBE.”_ ANIL AMBANI

This venture with Reliance opens a new door to future.

In reaction to the deal, shares in the Reliance-owned Adlabs Films surged 19.5 point to 354 rupees in early trade on the Bombay Stock Exchange before retreating to just under 335 rupees. Anil Ambani’s Reliance Big Entertainment is collaborating with Steven Spielberg

to launch a new movie studio that would be based in the USA.

It is likely to be joined by Stacey Snider and David Geffen of DreamWorks.

The deal is worth around USD 1.5 billion.

RELIANCE BIG ENTERTAINMENT & DREAMWORKS STUDIOS ANNOUNCE FIRST THREE FILMS

I Am Number 4’, "Pirate Latitudes" and "Harvey" are the projects on which the Reliance BIG Entertainment and DreamWorks Studios will work together.

I Am Number 4’, is to be directed by "Transformers" director Michael Bay whereas Speilberg himself is planning to produce and direct ‘Pirate Latitudes’ which is the adaption of the novel written by late Michael Crichton.

“Harvey,” a Spielberg-directed adaptation of a play about a man and his friendship with an invisible, six-foot-tall rabbit

FUNDING & FINANCING

50:50 partnership between Reliance Big Entertainment and Steven Spielberg

IS RELIANCE ENTERTAINMENT PLANNING AN IPO ??

Both JPMorgan and Reliance have released about $325 million in loans to make the partnership with Spielberg, with Disney contributing about $175 million

The balance of 375 million dollars will come from banks and financial institutions.

, JPMorgan arranged $325 million in senior loans from itself, Bank of America, City National Bank and others. Reliance matched the $325 million with an equity injection that makes it a 50 percent partner in DreamWorks. Disney provided a $175 million line of credit.

A PEEK INTO AMBANI’S AMBITIOUS PLANS? Given the high risk nature of movie making, is it worth investing so much in movies ?

i. the movies produced by Dreamworks would be distributed by Walt Disney globally, while the exclusive rights for India, ‘‘including DTH, DVD and theatre rights``, would rest with Reliance Big Entertainment

ii. $325 million would come from ambani personal contribution, ‘‘$150 million would be chipped in by Disney and the rest would be with banks and institutions. $325 million will be in the form of equity

iii. For the Indian film industry, the move costing Rs 360 crore would be a milestone. "You can see positive shifts in industry dynamics across the value chain in the industry, for the first time in five years.

iv. Films will be marketed globally , will be viewed by global audience

DEVELOPMENT FUNDS WOULD BE PROVIDED TO EIGHT CREATIVE FORCES IN HOLLYWOOD, COMPRISING

NICOLAS CAGE'S SATURN PRODUCTIONS,

JIM CARREY'S [JC ENTERTAINMENT,

GEORGE CLOONEY'S SMOKEHOUSE PRODUCTIONS,

CHRIS COLUMBUS' 1492 PICTURES,

TOM HANKS' [ PLAYTONE PRODUCTION,

BRAD PITT'S PLAN B ENTERTAINMENT

JAY ROACH'S EVERYMAN PICTURES

It’s a typical Reliance strategy, Own the hardware—cinemas—and control the entire supply chain.”

The diverse businesses of reliance will tremendously help achieve the goal succesfully

Given the growth of Bollywood movies and soaring popularity of Indian stars in the west, this seems to be the perfect move!

Los Angeles-based Creative Artists Agency was “instrumental in brokering the deals” and is advising Reliance Big Entertainment on its Hollywood strategy

Reliance says it hopes to reach Bollywood fans in the U.S. through its American movie theaters

Is Reliance spreading itself too thin getting into every line of business?

For the Hollywood studios, Reliance ADAG provides a growing presence in production, distribution and exhibition in India.

Billionaire investor George Soros last year paid $100 million for a small stake in Reliance Entertainment, and its venture with DreamWorks SKG will start shooting films by the summer.

Walt Disney Studios, Viacom Inc, Sony Pictures, Warner Brothers and News Corp’s Fox Star Studios all have local co-production deals in India.

Revenues from India’s film industry, the world’s most prolific, is forecast to rise to about $4 billion by 2012

CONCERNS & OBSERVATIONS

Some industry observers caution, that may be too fast a conclusion. In their opinion, the deal's rub-off effect on other investment proposals would take time to materialise.

share of revenue from Hollywood films that run in India is small, say industry experts. According to industry estimates, the Hollywood films generate only around 3 per cent of the Rs 12,000 crore Indian film industry’s annual revenues. 

There is nothing for Bollywood in this deal. It is merely an extension of the individual aspirations of Ambani. He will get to distribute Hollywood films in India as done by Warner, Fox Studios and others. Moreover the share of revenues generated by the Hollywood films is very low despite dubbing them in seven languages,”

This is a bold move from reliance & we expect many other conglomerate s or corporates to join the wagon . This deal perhaps has the capacity to change the face of film business in india.

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