Box office: Understanding the economics of FAN

 

The much awaited Shah Rukh Khan starrer Fan released last week and despite the extensive hype surrounding it, the film's performance seems to have been a tad bit disappointing. The film that Box office: Understanding the economics of FAN

 

stars the King Khan in a double role, received a tepid response at the box office.

 

In this box office report we at Bollywood Hungama decided to take a look at the business of the film as we analyze the overall profitability for the makers of Fan. Though it hasn't

 

fared as expected, from the commercial point of view, the movie is in the black. The film recovered a major chunk of its production cost through the satellite rights. It was definitely a wise move

 

by Yash Raj Films, who sold the same to Sony at a handsome price prior to the release owing to their deal with the channel network. In fact, if the same set of rights were sold post release then

 

the film would have failed to fetch even quarter of the said amount. What also worked in favour for the production house Yash Raj Films was that all the other rights were held by the studio itself.

 

The makers of Fan have made a profit or Rs. 18.29 cr with a 17.42% rate of return on investment. In the final tally, the film is estimated to end with a profit of approximately around Rs. 25 cr. However, given the fact that Fan was backed by a renowned production house like YRF and featured a superstar like Shah Rukh Khan, the numbers might not be exciting enough on the balance sheet of the studio and they would surely be disappointed.

 

Economics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Head	Amount (INR cr.)	Comments
Cost Of Production	85.00
Cost of Marketing (P&A)	20.00
TOTAL COST	105.00
India Theatrical Box Office	79.25	As of 24-Apr-2016
Distributor's share (A)	35.66
Overseas Theatrical Box Office	61.40	As of 24-Apr-2016
Distributor's share (B)	27.63
Home Video, Music, Digital & Ancillary Rights (C)	5.00	Estimated
In film Placement and Merchandising Rights (D)	5.00	Estimated
Satellite Rights (E)	50.00	Acquired by SONY
TOTAL RECOVERIES (A+B+C+D+E)	123.29
PROFIT	18.29
RETURN ON INVESTMENT (ROI)	17.42%