Several sectors may have started to show signs of recovery from the economic slowdown but the film industry may continue to feel the pressures during the pr­esent financial year as well.

Consultancy firm KPMG projects between 10 per cent and 15 per cent decrease in the number of movie releases in 2010-11 due to fund- raising hassles and production delays.

Over 1,000 films were released last year and the failure rate continued to be over 95 per cent, as it did in 2008. Starting mid-2009, production houses began announcing films with renewed vigour.

According to industry players, the sudden spurt was because of decrease in big-budget films leading to more small and medium ones. By the end of the year, several films - at least 50 in Tamil Nadu alone – were pending release owing to lack of screens.

Accroding to Rajesh Jain, national industry director – information, communicati­ons and entertainment of KPMG: “Despite a marked increase in the number of films released last year, the industry degrew. Irrespective of the different implications on the different links in the production cycle, the industry did not do well as a whole. The main reasons being the boycott by multiplexes, lack of quality content, increase in the fees paid to stars; reduction in the shelf life of content and the ‘bunching of films’ (several releases together). This year the industry may see only a marginal growth or end flat.

The cash crunch felt last year led to production delays and will start showing only this financial year, he added. KPMG will announce the specific details of the industry’s last year’s performance in its sector report to be released next week. KPMG expects lackluster performance this year because the “dark window period” (when no films are released) has already increased to over two months. From last year’s experience, industry players have realised that no films can be released during the IPL season (The Indian Premier League), Jain said.

“This is an inflection point and the industry has to undergo correction. Quality content, market analysis, se­gmentation, and good marketing alone can help the industry to grow. We are bringing out a chapter on ‘know your consumer’ in our report. In an industry where success is just a two to four weeks’ game (initial period after release) research orientation and creating content according to audience preferences is very important,” he added.