Hollywood, Bollywood to Merge Into One Movie Empire?

"In order for our cinema to break out, we have to retain our identity and in order to do that is our strongest element is music and sound," Sippy said. "It would be impossible to take it out because then it's just a film, not a Hindi film."

Americans may already be familiar with the female star of "Chandni Chowk To China," Deepika Padukone, who also played a role in "Om Shanti Om" — one of Bollywood's biggest international hits.

A few of Bollywood's most famous actors have had success in both India and America, including the stunningly beautiful Aishwarya Rai, whose first international release was "Bride and Prejudice." Salman Khan acted with "Heroes" actress Ali Larter in 2007's "Marigold" and Vishal Bharadwaj is said to be in talks with about a Hollywood film with actress Uma Thurman.

But crossover between Bollywood and Hollywood is difficult. It is a huge risk to give up fame in one country to start over again in the other. For the younger actors beginning to gain momentum in their native country, the loss of momentum could end their careers. Of course, for established actors like Stallone — who may not have as many opportunities for Hollywood leads — the chance to play in Bollywood and earn money has little downside.

It is not just actors and investors who are crossing the oceans. Bollywood producer Milan Luthria is hiring an American film crew for his upcoming, still unnamed, film. Luthria's recent hit "Taxi No 9 2 11" was the Bollywood version of the Hollywood's "Changing Lanes" starring Ben Affleck and Samuel L. Jackson.

Luthria hired the American crew in part because there is more money in the Indian film industry so they are able to afford the foreign rates.

"I don't think America does anything better than movies, so you really get a wide choice of talent to pick from," he said. "For me personally it adds to my learning process. If I interact with American technicians, there's a cross learning experience that happens."

As for the potential Reliance deal and the global expansion of the Indian film industry, Luthria was positive about both.

"There is more awareness abroad of Indian films, they don't look at it as a small fledgling industry," Luthria said. "We've got more reach, there are Indians everywhere."

Note: This story has been corrected. In its original form it identified Akshay Kumar as the female lead in "Chandni Chowk to China." Kumar was the male lead; the lead actress' name is Deepika Padukone. ABC News regrets the error.

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