Digital Distribution: Bollywood’s Reaction

Digital revolution set to sweep India’s Bollywood [pdf]

In the United States, a digital roll-out has stalled while Hollywood studios and theater owners fight over who pays for top-quality computer-based projection systems that cost $80,000 to $100,000 per screen.

But in the Mumbai-based film industry known as Bollywood, entrepreneurs are willing to settle for a bit less quality at one-third the cost. They use cheap digital cinema in remote towns to cash in on blockbusters — and in the process, beat back video pirates, too.

[…] But as with mobile phones, India opts for value over top quality, a strategy that makes sense in an industry where only one in 12 movies has made a solid profit since 2001.