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Last Updated 07.04.2020 | 11:35 PM IST
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‘Ra.One’ – The economics

By Bollywood Hungama

Let me re-phrase the dialogue from READY. Zindagi mein 3 names ko kabhi under-estimate mat karna: Aamir Khan, Salman Khan and Shah Rukh Khan. It started with GHAJINI, which was the first Hindi film to touch the Rs 100 cr nett mark in India. Aamir followed it up with mega-blockbuster 3 IDIOTS, while Salman had a hat trick of blockbusters in DABANGG, READY and BODYGUARD. Now SRK's RA.ONE has only made us realize that the business of Hindi films is growing rapidly and what was a distant dream or perhaps, unimaginable -- touching the Rs 100 cr mark -- is very much in sight in the 5-day opening weekend itself. Sure, BODYGUARD and RA.ONE have not been able to attain the figure [Rs 100 cr] in 5 days, but don't be surprised if the forthcoming biggies manage the feat in the near future. If there's any other actor who comes close to the three Khans, it is Ajay Devgn, who has two films in the 100 cr Club -- GOLMAAL 3 and SINGHAM.

The word of mouth for RA.ONE is extremely mixed. In fact, it's extreme -- people are either loving it or hating it. But what's new? Prior to RA.ONE, the reports of SINGHAM and also BODYGUARD were extremely mixed. Worse, the critics were harsh on these two films as well, but that didn't stop the audience from giving their mandate, embracing the films whole-heartedly. The business of these two films bears testimony to this fact. But what goes against RA.ONE is the negativity, which may hamper its business in the second weekend.



Now let's look at the economics of the film:-

The cost, including P & A, is Rs 135 cr.

Now let's look at the recoveries:-

* Satellite rights [Hindi, Tamil, Telugu] + Audio rights + Home Video -- Rs 50 cr.

* U.K. Government subsidy -- Rs 15 cr to Rs 25 cr









Which means, the recoveries from the above-mentioned rights is Rs 75 cr. The balance amount -- Rs 60 cr -- has to be recovered from India and Overseas theatrical.

In view of the fact that RA.ONE has collected Rs 92 cr in its opening weekend [all languages] in India alone, the distributors' share works out to approx Rs 50 cr. Mind you, I am not looking at the revenue RA.ONE has generated from Overseas. I am looking at the business from India right now. Which means, a big chunk of the investment should be recovered from India itself. And if one were to add the revenue generated from Overseas, RA.ONE is already in profits.

Those asking whether RA.ONE would be able to touch/surpass the business of 3 IDIOTS in India [Rs 202 cr nett], let me make it very clear. It won't! Let's face it, the word of mouth for 3 IDIOTS was unanimously superb, while the response to RA.ONE tilts more towards the negative side. But it would be interesting to see where RA.ONE eventually lands up at the end of the day.

As for Eros/Red Chillies, well, RA.ONE would ensure profits for sure, but when you attempt a film of this magnitude, you expect the profits to be in Rs 30 cr to Rs 40 cr range [or more, in the case of 3 IDIOTS and BODYGUARD specifically]. That might not be the case here!

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