In December last year we saw the release of the Rohit Shetty directed film Dilwale featuring Shah Rukh Khan, Kajol, Varun Dhawan and Kriti Sanon. The film which was produced by Red Chillies and Rohit Shetty Productions, despite featuring a star studded cast and insane promotions did not perform as expected at the box office. However, now months after its release we hear that Shah Rukh Khan, whose production Red Chillies took over the distribution of the film in India has decided to refund the individual distributors to a certain extent for the losses incurred.
In fact back in 2001 and 2005, Shah Rukh Khan had refunded the individual distributors of his films Asoka (Eros) and Paheli (UTV), after both films underperformed at the box office. As a direct result of the actor’s 2001 film Asoka underperforming at the box office, Shah Rukh’s subsequent release Chalte Chalte was sold for a much lower price. On similar lines after the failure of Paheli, distributors of Shah Rukh’s next venture Om Shaanti Om were given first right of refusal to acquire the film.
Recently admitting Dilwale‘s underperformance at a press conference Shah Rukh had said, “I don’t think the film has done as well as it should have. I am personally disappointed with that”, well now the actor has decided on reimbursing 50% of the losses incurred by the distributors. However, the interesting part here is that as of last count Dilwale had done approx. Rs. 150 cr net business in India and Rs. 174 cr gross in the overseas markets, while the satellite rights were sold for Rs. 70 cr to Sony MSM. Music rights of the film were sold to Sony for Rs. 18 cr. With the sale of these rights Shah Rukh quite literally made a killing on the project earning close to Rs. 150+ crores as profit!
SRK had set a domestic distribution target with a minimum guarantee (MG) of Rs. 130 cr; but since Dilwale collected around Rs. 150 cr at the India box office, the distributors share would have amounted to approx. Rs. 70 to 75 cr which meant a loss of around 55 to 60 cr cumulatively for the individual distributors pan India. According to our reports, Shah Rukh has refunded close to Rs. 25 cr to cover up 50% loss to distributors asking them to bear the rest. If that wasn’t all, sources close to the actor and his production mention that Shah Rukh has in fact, prima facie also consented to these distributors getting first right of refusal for his next release Raees.
With this news we guess SRK is indeed a ‘Bade Dilwala’ and a large hearted Raees.