"People still love to go out and watch a film in a theatre, but some people just cannot resist a cheap DVD," says Bill Poppe, who has successfully sued several illegal DVD manufacturers and sellers.

He says most distributors are content moaning the loss of revenue but are not proactive. His client Yash Raj Films goes after illegal DVD manufacturers with zeal. But when it comes to collecting the fines imposed by the courts, the distributor is helpless. The guilty party declares bankruptcy and shuts down the business. Often they move on and start afresh.

The market could also benefit if Bollywood films are released in more upscale theatres. In recent years, a few distributors like Yash Raj have shown their films in multiplexes that also screen mainstream movies.

The situation could alter dramatically when Sony releases its first Hindi language film, Saawariya, in over 80 theatres across the country in November. Most Hindi films are released in about 60 theatres in North America.

If the Sony strategy works out, Saawariya could become the first substantial hit abroad without star power. The film's lead players, Ranbir Kapoor and Sonam Kapoor, are newcomers.

The overseas gross is also crucial for Saawariya for another reason. It opens the same day in India and elsewhere with another big budget film, Om Shanti Om, the Shah Rukh Khan starrer.

"For both films every cent, every euro, every coin from the remotest part of the world will matter," says a rival distributor. "Given the fierce competition in India and the high entertainment tax, overseas grosses are truly crucial for both films."