It's official: Bollywood films are becoming increasingly popular in the US as the latest blockbusters bring in millions at the box office and new fans eagerly await the next release.

Films from India do more business in the US than films from any other country, says an article in 'The Washington File', an online resource of the State Department's Bureau of International Information Programmes.

One of India's largest film producers and distributors, Yash Raj Films, reported in September 2005 that Bollywood films in the US earn around $100 million a year through theatre screenings, video sales and the sale of movie soundtracks, citing the Internet Movie Database, an organisation that tracks box office sales in several countries.

Although a small number in comparison to the mainstream US film industry, these figures contribute significantly to the bottom line of Indian filmmakers, said the article on USINFO website that delivers information about current US foreign policy and American life and culture.

The increasing popularity of Indian cinema, often called "Bollywood Mania" by the press, is driving Indian filmmaking to new heights in terms of quality, cinematography and innovative story lines, it said.

As technical quality advances, moviegoers come in ever increasing numbers to watch the latest movies arriving from India's largest city.

Entertainment Weekly reports that the now $8 billion film industry produces more than 900 movies a year in more than 20 languages, which makes India the world's most prolific film producer.

For the Indian crowd, the music and songs are a major draw to the movie. Many films coming out of India have failed due to repetitive tones or unappealing lyrics.

The pre-release of soundtracks is as strong a teaser for a movie to Bollywood fans as a video trailer is for many western moviegoers. Perhaps the most typical aspect of Bollywood films is the assured happy ending to give audiences an uplifting finale.

"Kabhi Khushi Kabhi Gham" (Sometimes Happiness, Sometimes Sadness), known as K3G, was released in December 2001 in the US and grossed more than $1 million in its opening weekend. It ended its one-month run in the US with $2.9 million in box-office sales.

"Veer-Zaara", marketed to both Indians and Pakistanis, followed in K3G's footsteps with its November 2004 release in the US, also bringing $2.9 million during a two-month period.

The familiar plot of a Hindu falling in love with a Muslim was filled with unfamiliar twists and turns. "Seasoned Bollywood fans will be in heaven," said a New York Times film review.

The growing popularity of the films led to a joint Bollywood/Hollywood production, "Bride & Prejudice", the adaptation of Jane Austen's "Pride and Prejudice". It opened in the US on February 13, 2005, and grossed $6.6 million by May 22, 2005.

The film starred Bollywood idol and former Miss World Aishwarya Rai, the latest Bollywood "crossover" star in Hollywood. She will be appearing with actress Meryl Streep in "Chaos", due out in 2007.

Currently, Bollywood smash superhero movie "Krrish" is competing with America's own Superman. According to the Los Angles Times, the Indian film brought in $643,000 (in 59 locations) in its first three days in North America, averaging about $11,000 per theatre.

It has been reported that tickets to the movie were sold days in advance and in New York, almost half the crowds were non-Asian. Globally the film brought in $15 million in its first week, an all-time record for an Indian movie.

"Krrish", released June 23, is now playing on 75 screens across the US and has topped the $1 million mark. It still is playing in select theatres nationwide.

For the South Asian community in major US metropolitan cities like Chicago and New York, the names of Bollywood megastars Shah Rukh Khan and Amitabh Bachchan are just as big, if not bigger, than Hollywood stars like Tom Cruise or Brad Pitt, but critics say much of the commercial potential of Indian movies remains untapped.

"If more improvements are made in marketing and distribution, Bollywood films can earn significantly more revenue," explains Gitesh Pandya, editor of online movie sales-tracking site.

"Many of the bigger films are debuting in the top 20 box office charts despite playing in only a few dozen theatres nationwide," he added.

According to the US operations of Yash Raj films, no more than 80 theatres in the US show first-run Indian movies.

Pandya wants to bring more major Indian movie productions to the American media, according to the Washington File. "There are so many more US moviegoers who would love to see Bollywood films if they knew more about them, and had local theatres playing them," he said.

Over the last 10 years, Indian filmmakers have set their sights on the US also when it comes to location filming. With growing numbers of south Asians migrating to the West, plot lines increasingly include scenes in America. A few recent prominent films made in the US include "Kaante" (Thorns), "Kal Ho Naa Ho" (Tomorrow May Never Be), and "Chocolate".

With its movie industry gaining popularity in the West, Bollywood enjoys instant access to American living rooms via "Bollywood On Demand" provided by Comcast Corporation, the largest cable television provider in the US, and more movie titles are being offered through video rental companies Blockbuster Video and Netflix.

These flashy, music-oriented films have influenced the first Bollywood musical to hit Broadway, "Bombay Dreams", which is now touring across the US. The film about a Bombay slum-dweller, Akaash, who tries to make it big in Bollywood was produced by the legendary Andrew Lloyd Webber, with music by composer A.R. Rahman.

Not only have Bollywood films achieved million-dollar revenues in the US, but Bollywood "star shows" featuring the much sought-after stars of Indian cinema sell out in cities across the country.

These shows bring old and new films to life with songs from popular movies, live dancing, pyrotechnics, costumes and audience participation. It is a way for fans to connect with their favourite movies and embrace the unique culture of Bollywood, the Washington File concluded.