NG | May 20, 2013
December 4, 2012
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Can anyone put an tell the economics of JTHJ and SOS…What is return on investment on these films and whether are profitable for their makers…
There are no secrets regarding Talaash economics, very much as Komal ji says.
The film has a total worldwide release cost of 45 crore (sans Amir’s fee, as he is a partner in production, like SRK for JTHJ). And very much like JTHJ, the makers (Reliance) are also the worldwide distributors, so the equations becomes easier.
They have already pre-sold the satellite rights for 40 crore.
December 5, 2012
The diff between JTHJ & Talaash (as I have said above) is that SOS makers are not the distributors.
EROS bought the worldwide rights of SOS from Viacom 18 & Ajay for 80-85 crore, so they have to recover/make profit on their investment, from the worldwide theatrical run.
Had Viacom 18 released the SOS themselves, or thru Devgan’s distribution netwerk, based on the 40-45 crore budget, it would have been termed a hit plus by now.
The final outcome (as rating is from distributors point of view, not producers) will depend on how much profit EROS make over their 80-85 crore investment in SOS.
Thanks Tango…but for SOS EROS must have recovered half amount from non theatrical revenues…so i think they would be in plus taking into account worldwide theatrical revenue…
Ady_koolz “but for SOS EROS must have recovered half amount from non theatrical revenues”
For that we have to know how many rights were included in that 80-85 crore deal.
If it includes the satellite rights then you are right, if it rests with Devgn & Viacom than EROS will have to rely on the theatrical run.
But tango…why would eros buy a movie purely for thearitical ryts for 85 crores? I mean its obv sos wont earn tht much..even before the release… As in 100-105 crore net is a great number after clash nd ol… Nd it has performed great…even ajay wont be accepting it to earn 140 smethng fr tht much amount of money to be earned… Tv ryts must be there as well in the deal i assume!
EROS have a history of buying films at exorbitant prices Kunal.
I think money does not matter to them, because if we evaluate their case, film-by-film they would have been bankrupt by now!
I think procuring prestigious films is more important for them, rather than earning or loosing, very much like what T-Series used to do at one point of time.
Talaash is a Hit in India and will collect around 80-85 cr nett…lifetime..!!
but i read SOS Distribution rights were sold for 60-65 cr…
Whole SOS was Sold for 90 cr to EROS including other rights……
If that’s the case then its a good deal as they would be able to Break Even easily
As in case of JTHJ and Talaash YRF and Reliance will make huge profits but that profit will be cut short by the Profit sharing with Actors who will get atleast 50-60% of there 40-50 cr profit……
As EROS thing is concerned they buy the whole movie and never give Profit sharing to Lead actors of more than 20-25% that’s why there cost of purchasing increases by 20-30 cr from say a Reliance or UTV or even a YRF and T series…!!
so ultimatly even if a film cost Reliance 50 cr they get same profit as Eros to whom the film may cost 80-90 cr….
As Reliance profit gets divided with the Actor(50-60% profit goes to say Aamir) whereas EROS gets whole 100% profit…!!
Talaash is done and over now (broken all the previous records of Indian Film History)
Move on to K786 guys !!!!!