Murdoch Venture to produce feature films in India

Rupert Murdoch-owned US film studio and distributor Twentieth Century Fox and another Murdoch venture Star Group have announced a joint venture to produce Asian-language films for worldwide distribution, according to a joint statement issued in Mumbai, Hong Kong and Beverly Hills.The Indian film industry has grown by 17% in the period 2004-2007. On an verall basis, the Indian film industry stood at Rs. 96 billion 2007, up from Rs. 85 billion in 2006, according to a report by FICCI & PWC.

The new organisation, to be called Fox Star Studios, will first work in India, with a view to expanding into China and Southeast Asia, said the statement. The new organisation- Fox Star Studios- will first produce films in Hindi, India's main language and later in other regional Indian dialects, with a view to expanding into China and Southeast Asia, said STAR India president for strategy and corporate development Vijay Singh who will head the Indian operation. Mr Singh said the studio is in talks to produce traditional Bollywood films as well as become involved in emerging genres.

It would also help Hollywood films gain a wider audience in India, they said.

Star India chief executive Uday Shankar added: "This initiative... (will) create higher level skill sets in film production, marketing and distribution for the industry."

AFP adds: In India, the tie-up is part of a growing trend for corporatisation of the Indian film industry and a reflection of Bollywood's increasing appeal outside its traditional market to a wider audience, particularly the Indian diaspora.

Last year the Indian film industry made 1,146 films, according to the Federation of Indian Chambers of Commerce and Industry, which produces an annual report on the state of the entertainment sector. The film industry was worth an estimated 2.1 billion dollars, it added.

Hollywood Reporter says: In July, Singh oversaw the purchase of "Quick Gun Murugan," a comedy about a South Indian cowboy, for distribution in India in October, marking one of the first planned releases from the much-touted partnership between the News Corp. companies.

While News Corp.'s new Indian venture will focus on local production, it also will try to make it easier for Fox to distribute its Hollywood-made content in India, according to Sunder Kimatrai, Fox's Asia/Pacific vp theatrical business.

The new venture will try to build a theatrical distribution footprint in India, leveraging Fox Theatrical Network's distribution in 44 countries.

The venture also will try to enhance News Corp.'s ability to distribute its content into Indian homes via digital media platforms.

"Our vision is to become a one-stop shop that encompasses film acquisition, development, marketing, production and distribution in India," Singh said.

Fox Star Studios also plans to go after markets in Greater China and Southeast Asia, though no details were revealed Tuesday.

Increased foreign investments in the sector In 2007, foreign investments in the Entertainment & Media sector of India reached a record high of USD 211 million, approximately Rs. 8.5 billion. This was seen as result of the extremely high number of investment deals announced in 2006 and the years before.