The process of selling the distribution rights of Zero has begun, and the producers, Red Chillies Entertainment have decided to sell the film to individual distributors rather than getting a studio on board for the film. The All India Distribution Rights of this Shah Rukh Khan starrer are being sold to the distributors in the ratio of Rs 100 crore share, which means that the aggregate value of the distribution rights of all circuits taken together will be around Rs 100 crore.
Pen Marudhar Cine Entertainment have managed to bag the distribution rights of the film for Delhi, UP, Rajasthan, Punjab, CP and CI for an approximate sum of Rs 43 crore. PVR Pictures has acquired the Mumbai Circuit Distribution rights for approximately Rs 32 – 34 crore whereas SVF Films have got the rights for West Bengal Circuits. The rights have also been sold for other circuits like Mysore, Tamil Nadu, Bihar, Andhra and Nizam, however the name of individual distributors is not known yet. Unlike the previous RCE films which were sold on MG – Minimum Guaranty Basis, Zero has been sold on advance basis, which means that in case of a loss, the distributors can claim refund from the producers. On the flip side, if the film makes overflows i.e. the share in excess of Rs 100 crore will be shared by Red Chillies Entertainment with the Distributors at a predetermined ratio of 85% in favour of the producers.
This is a safe way of doing business as the onus of loss doesn’t really lie on any single party and the profits for both producers and distributors depends on the merits of the film. With Rs 100 crore as the amount fetched towards the domestic rights, the film would break-even in India at nett collections in the range of Rs 190 to 195 crore, and everything above that will be overflow that will be shared by the two parties. As compared to previous Shah Rukh Khan films, Zero has fetched a higher amount than Jab Harry Met Sejal which was sold in India for Rs 85 crore MG, whereas lower than Dilwale, which was sold of approximately Rs 130 crore MG.
The amount fetched is lower than Dilwale primarily because Zero would face competition in the form of Simmba from its second week, which would put a major dent in the collections, especially at the mass centres. It is a safe deal in our opinion wherein all parties stand a chance to make healthy profits if the content lives onto the expectations. Talking about the overseas belt, it is Yash Raj Films who are distributing the film at the traditional markets like USA, UK and UAE. The film has been acquired by YRF on commission basis, which means a profit-sharing deal.
We reached out to Jayanti Lal Gada from Pen Marudhar Entertainment, who confirmed the news of acquiring the film, though refused to divulge into the financial aspect of the same. Directed by Aanand L Rai, Zero starring Shah Rukh Khan, Anushka Sharma and Katrina Kaif is slated to release on December 21, 2018. The theatrical trailer of the will be launched on November 2.