Recession! What recession? India signs more film deals with Hollywood

Berlin. As the Berlin International Film Festival gets into a full swing there are reports of Indian Reliance Big Entertainment (RBE) signing development deals with a number of Hollywood ventures, including a two picture agreement with 'Pretty Woman' star Julia Roberts' Red Om Films and Brett Ratner's Rat Entertainment. The latest announcement was made in Berlin by Reliance Big Entertainment's chairman Amit Khanna and president Rajesh Sawhney. Kathy Robinson looks at recession-proof India for India-EU Film Initiative (www.iefilmi.com)

According to observers in Berlin, Indian Film Industry doesn't seem to be caught up in the recent recession and economic turmoil. Supported by a number of film stars India's IPL, Cricket league, surprised many as the bidding for international cricket players went up and up Friday, Feb 6, 2009. Recession? What recession, noted many.

With the Berlin announcement, Anil Ambani-led group's current tally of development deals reaches to nine, following the announcement at Cannes last year of pacts with Nicolas Cage's Saturn Prods., Jim Carrey's JC 23 Entertainment, George Clooney's Smokehouse Prods., Chris Columbus' 1492 Pictures, Tom Hanks' Playtone Prods., Brad Pitt's Plan B Entertainment, and Jay Roach's Everyman Pictures.

Britain's Financial Times wrote: The game of cricket defied the global economic downturn by scoring record prices in the Indian Premier League auction held in the beach resort city of Goa. The high prices paid at the auction reflect the emergence of India as the financial heartbeat of international cricket in recent years. The IPL is its carnival-atmosphere showcase, bringing capitalism, cricket and Bollywood glitz together in a way that Kerry Packer, the Australian tycoon who tried to commercialise cricket in the 1970s, could only have dreamed of.

Back to film business, Berlin is not the end. In fact, more projects financed by RBE are in the pipeline. "We're pretty much on track with the first projects from these deals, so we hope to announce further details at Cannes," said RBE chairman Amit Khanna.

Khanna said the company is also on track with its deal with Spielberg's DreamWorks, despite the global liquidity crunch, and has now acquired the studios' development slate of 17 projects from Paramount.

The Reliance-Anil Dhirubhai Ambani Group (ADAG), owner of RBE, has now forayed into the movie marketing arena through their new division BIG Boom.

RBE has also launched its international sales division with a slate of 18 projects in various languages, including $30m romantic thriller 'Kites' featuring Bollywood superstar Hrithik Roshan and Mexican star Barbara Mori.

'Kites' is a production of Filmkraft Productions (India). Its chairman Rakesh Roshan said, "This is the biggest film to come out of India ever; and a film targeted at both the Indian as well as the worldwide audiences. We believe that Reliance Big Entertainment will leverage its marketing machinery and distribution platforms to take this film to the widest possible audience the world over."

Kites, directed by Anurag Basu, also stars Kangana Ranaut, Nick Brown and Kabir Bedi. The music of the film has been composed by Rajesh Roshan, brother of Rakesh Roshan who is the father Hrithik Roshan. All in the family business.

"We regard Kites as an international film that is being produced with an Indian sensibility," said RBE president Rajesh Sawhney.

The entertianment magazine Variety adds: Reliance execs have been savvy in avoiding any potential conflict of interest between their growing roster of Hollywood talent and the studios.

"Our idea is to complement rather than compete with the Hollywood majors," said Amit Khanna. "We're looking for a symbiotic relationship with Hollywood. We want to work together rather than work against anyone."

Reliance executives also confirmed that they were happy with progress at Dreamworks 2.0.

"Everything is on track," said Khanna. "There are 17 projects in active development and we would expect Stacey (Snider) and Steven (Spielberg) to begin active production in the next couple of months."

That number refers to the 17 projects Dreamworks acquired from former owner Paramount this past January to keep under its fold.

Reliance originally pledged to invest up to $550 million in equity for the post-Paramount incarnation, with DreamWorks expected to match that amount in debt raised through its bankers at J.P. Morgan. That figure has since been brought down to $325 million after DreamWorks toppers Spielberg and Snider faced difficulty assembling financing given the weakness of global credit markets.