RobbieS
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It's the old age winning formula. I think after Once Upon a Time, and Dabangg, producers are seeing that going for mega stunts and big exotic locations is an expensive mistake.
I'm sure they'll re-evaluate their stance and bring films back to India. I know the Western market is lucrative, but don't neglect your core audience, or that soul we the viewer are after.
Actually, you are pretty much right there. Movie makers were losing their core audiences and with that the money that they bring. Many expensive films had bombed making producers re-evaluate their methods. As a result, recently you would see a lot art/multiplex type movies with a real theme that connects with the audience. Oye Lucky..., Dev D, Khosla ka Ghosla are a few such movies. These types of movies got a boost when young educated film makers got backing from upcoming film houses like UTV and PVR.
But the market for Karan Johar type NRI movies still remains. Its just the nature of us Indians. We want escapist, emotion laden extravaganzas.