Role of Bollywood in Indian market has been very significant since its inception and the industry is constantly gaining priority with time. Although initially film industry was considered as a low earning industry, over years it has emerged as a source of substantially good income.

The growth of Indian film industry has been most prominently observed in Bollywood which has encountered a great demand at national level. Production of Bollywood films has increased rapidly over the last two decades. Bollywood has also got enriched in terms of diversity and cater a vast range of cultures, moods and people. Cash inflow in Bollywood has increased a great deal owing to the development of new investment modes and introduction of new policies and regulations. Existing cinemas has been upgraded to multiplexes which in turn attracts more viewers, especially from urban areas.

Bollywood in Television Channels
Various developments in Bollywood have collectively contributed in augmenting the stature of Bollywood in the national market as a high earning industry. Statistics have established that the box office has experienced a rise of 29 percent form the year 2001 to 2005 and in the year 2005 it has increased by 17 percent. With the advent of the concept of film distribution, Bollywood movies have found a new way of exhibition through Indian television channels. In the early 1980s film industry encountered a major set back due to the national coverage of Indian television which greatly depleted the demand of Hindi movies. However, in 1990s the entry of satellite channels such as Zee TV, Star Plus etc, brought a new concept of selling films to Indian television channels which added to the business of Bollywood.

New Marketing Technologies in Bollywood
Bollywood has always been very prompt and enthusiastic in adopting new technologies as compared to the other world film industry. An excellent example of it is the large scale implementation of digital cinema distribution. It has also made considerable efforts in mastering new auxiliary revenue streams by supplementing the sales of music soundtracks in various ways such as ring tones, computer games, movie clips for mobile phones and toys.

Over years Bollywood has explored new markets and has gradually emerged as one of the most significant and rapidly growing industries. Not only in India, but it has also carved a distinct niche for itself in the global market. Bollywood presently accounts for more than 40 percent of the total revenue of Indian film industry. With a remarkable growth, it is now regarded amongst India`s top growth clusters. Including the revenues of music rights and advertising, it has shown a commendable growth in terms of revenue. New marketing schemes and global distribution have greatly augmented the sales and revenues of Bollywood and its growth in national market has also enabled it to tap the global market efficiently.