| dc.description.abstract | The motion pictures business i.e. the movie business has certain unique aspects which pose challenges in front of those who fortunes are linked with the industry. The shelf life of a movie is short whereas the cost of producing and marketing it and the financial risks associated with its success are very high. The concept of hedging risks is in a very nascent state in the Indian film industry . The business is done in a very traditional way which exposes producers, distributors and financers to undue risks. In this paper we have looked at the Indian film Industry , the Hindi film industry in particular, its evolution and The risks and challenges that the industry faces. We have analyzed various risks faced by the industry like the risk of a flop movie, financing risks, political risks , and competition from regional film industry and also competition from Hollywood movies which are gaining popularity in India to name a few. We have categorized these risks in certain applicability of various financial instruments like options to hedge the risk of low business of a movie. We have also looked at a novel idea of securitization of box office returns and float bounds with those returns as underlying to generated short term financing. | en_US |
