Box Office: Understanding the Economics of Akshay Kumar's Airlift

 

It's been a couple of weeks since the release of the Akshay Kumar - Nimrat Kaur starrer Airlift, however the film that is based on one of the largest human evacuations in recent Box Office: Understanding the Economics of Akshay Kumar's Airlift

 

times still continues to run in a few theatres. While everyone has been proclaiming that the film has been one of the high points of the year so far we at Bollywood Hungama decided to take

 

a more acute look at the finances of the film and its profitability to its makers.

 

Interesting, Airlift that was made on a modest budget of Rs. 40 crores has been pretty profitable for its makers, with an expected profit of approximately Rs. 64.50 cr. While the below table

 

is pretty much self-explanatory a point worth mentioning is how profitable the venture was of Akshay Kumar. In fact the actor who usually charges anywhere between Rs. 30 to Rs. 35 cr for a film

 

slashed his remuneration to a meagre Rs. 8 cr. However, he did take a lion's share of the profits with his share being a whopping 70% of overall income with the remaining 30% being split between

 

the film's producers viz. T Series and Abundantia Entertainment (Vikram Malhotra).

 

With this restructured remuneration model, Akshay certainly hit the bullseye with him walking away with approximately Rs. 50+ cr in profits. Looking at this we must say that this was certain a

 

smart move indeed.

 

 

Economics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Head	Amount (INR cr.)	Comments
Cost Of Production	30.00	NOTE - Akshay Kumar's remuneration was 8 crore plus profit share
Cost of Marketing (P&A)	10.00
TOTAL COST	40.00
India Theatrical Box Office	120.00	Anticipated
Distributor's share (A)	54.00	Approximately
Overseas Theatrical Box Office	45.00	Anticipated
Distributor's share (B)	22.50	Approximately
Home Video, Music, Digital & Ancillary Rights (C)	8.00	Approximate
Satellite Rights (D)	20.00	Anticipated
TOTAL RECOVERIES (A+B+C+D)	104.50
PROFIT	64.50
RETURN ON INVESTMENT (ROI)	161.25%

 

 

Akshay Kumar's balance sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Head	Amount (INR cr.)	Comments
Remuneration	8.00
Profit Sharing at 70%	45.15
TOTAL	53.15