The film piracy industry in India is worth Rs15bn ($325m) and its profits are being used to fund terrorism in the country, Harish Dayani, chief executive of CD/DVD manufacturer Moser Baer said last week.

Rising piracy and the emergence of DVD technology have shrunk the average cost of movie viewing for an Indian family to Rs3 ($0.065). Nearly 40 million families in India have access to DVD technology and film pirates sell nearly 80 million DVDs each year.

"The pricetag of a pirated DVDs is Rs25 ($0.54) and the cost of a blank DVD is a mere Rs11-12. Imagine the profits they are reaping in," Dayani was quoted by The Economic Times.

"When we first announced that we would sell movie CDs and DVDs for $1 some years ago, the US production houses scoffed at us. They were selling the same product for $20. But look at the scenario today. Walmart has started selling 'Casino Royale' DVDs for $2. Moser Baer's pricing logic has worked," Dayani said.

According to Dayani, the effect of piracy is three-pronged. "First, it affects the flow of patrons to cinemas. Second, it cuts down on revenue coming in from home video. Third, piracy also drops television rating points as far as cinema broadcast from satellite is concerned.” (Source: The Economic Times).

Story filed 05.12.09