Losses and More Losses!

The picnic is over! The film industry was going through one of the best phases ever after GADAR and LAGAAN, but the losses incurred by the distributors and exhibitors subsequently in BAS ITNA SA KHWAAB HAI, AKS, YAADEIN, PYAAR ISHQ AUR MOHABBAT, HUM HO GAYE AAP KE, DIL CHAHTA HAI and YEH RAASTE HAIN PYAAR KE has set people thinking.


Some hard facts…


Most producers are finding it tough to sell the overseas rights. Initially, the Overseas territory was the first to sell as soon as a project was announced. A mammoth venture would normally fetch 8 to 10 crores from this territory alone, but in the current scenario, not more than 4-5 is being offered for the same biggie.


Same is the case with the satellite rights, which was akin to a bonus for a film producer. Not anymore! The satellite rights of a hit film and even those that have been released recently are waiting for buyers to knock on the doors.


The music rights of a majority of films are lying unsold. Practically all audio companies have decided to adopt the wait-and-watch attitude. The music territory has also turned ice cold these days.


Why, there is talk that a music company has asked the maker of the much-awaited film to revise the price they had initially agreed upon.


The distribution and exhibition scenario are on shaky grounds as well. Those exhibitors who had offered handsome advances post-GADAR and LAGAAN have burnt their hands badly in the past two months. Several distributors are insisting on deferred payments, in the wake of the exhibitors refusing to offer advances.


Be it Mumbai or Delhi-U.P. or Bengal, a pall of gloom has descended in film mandi everywhere. If the distributors and exhibitors are hit badly, can the producers be far behind?


A few instances:


The maker of a solo-hero film was quoting 1 crore for Mumbai territory, but is more than willing to clinch the deal at 65 lacs as the release date draws near.


Another film starring a leading hero is lying unsold for most territories, despite the fact that the director’s track record is quite impressive. Since the producer has already announced the release date, he will have to be content with whatever price he manages in this grim scenario.


The release date of this ambitious venture is being pushed further time and again because a majority of territories are still lying unsold. And those who had bought it initially are in no mood to take the delivery at the committed price. A price reduction is on the anvil!


So what’s the solution? How do we come out of the financial mess that we have landed ourselves into? Only hits can bring us back on the path of recovery.


Let’s hope LAJJA, NAYAK, KYO KII… MAIN JHUTH NAHIN BOLTA, INDIAN, AJNABEE, YEH TERAA GHAR YEH MERAA GHAR, EHSAAS… bring us out of the mess!