Understanding the Economics of Raees
Cost of Production – 70 Cr.
Cost of Marketing (P&A) – 17 Cr.
TOTAL COST – 87 Cr.
All India Theatrical Rights (A) – 70 Cr. (As sold to AA Films)
Overseas Theatrical Rights – 102 Cr. (Estimated Business)
Distributor’s share (B) – 40.80
Music, Digital, Merchandising, Licensing and Ancillary rights (C) – 60 Cr. (Digital rights sold to Netflix)
Satellite Rights (D) – 45 Cr. (Sold to Zee)
TOTAL RECOVERIES (A+B+C+D) – 215.80 Cr.
PROFIT – 128.80 Cr.
RETURN ON INVESTMENT (ROI) – 148.05%
Considering the final profit at approx. Rs. 130 cr., Shah Rukh Khan’s 50% profit share comes to approx. 65 cr. Add to this the fixed fee remuneration of Rs. 20 cr. and Shah Rukh Khan would walk away with approx. 85 crores as his share.
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