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Race 3 mints approx. Rs. 100 cr. in profit for the makers; distributors to lose close to Rs. 20 cr

+4 votes

Source : http://www.bollywoodhungama.com/news/features/race-3-mints-approx-rs-100-cr-profit-makers-distributors-lose-close-rs-20-cr/

Salman Khan‘s Race 3 has almost ended its run at the Box-Office with final collections falling in the range of Rs. 170 crore, thereby entailing a distributor share in India of approximately Rs. 85 crore. The action thriller was distributed by Salman Khan or Ramesh Taurani in almost major territories in India like Mumbai, Delhi, U.P and East Punjab, due to which the film was not a loss-making preposition at these places.

#Race 3

Race 3 mints approx. Rs. 100 cr. in profit for the makers; distributors to lose close to Rs. 20 cr

However, the film was sold on MG at other markets and the same has resulted in an accumulated loss of Rs. 20 crore to the individual distributors. Self-distribution by Salman Khan and Ramesh Taurani proved to be a blessing in disguise, because had they sold the film outright to any studio for a lump-sum consideration, the studio would have burnt their fingers. Talking from the producers’ point of view, Race 3 has been a money spinner for both Salman Khan and Ramesh Taurani. The producers recovered a major portion of their entire investment from non-theatrical revenue and revenues from the theatrical source just increased their table profit.​

According to unconfirmed sources, the film was mounted on a budget of Rs. 130 crore (Including PnP of Rs. 20 crore), and the makers received Rs 80 crores from the sale of satellite and digital rights. It is Salman Khan’s star-power that helped the film fetch such a humongous deal from several networks and made the film a profitable venture. Apart from that, the producers received approx. Rs. 40 crore as rebate from the U.A.E Government as a major chunk of film was shot in Abu Dhabi.

Being the distributors at Mumbai, Delhi, UP and East Punjab circuit, Khan and Taurani got a share of approximately Rs. 40 crore, and on the flip side got approximately Rs 65 crore from outright sale of rights to individual distributors. Therefore, the overall table profits for the producers are approximately Rs. 100 crores, whereas Distributors lost amount close to Rs. 20 crore.

This is a conflicting situation to allot a verdict to the film as one party has entailed losses; whereas other party has earned profits. In the good old days, films wherein distributors lost money were termed flops, but in a liberalized environment, such films are termed as average grossers. Here’s what the trade analysts have to say about the conflicting situation of distributors losing money and producers making profits:

Trade analyst Amod Mehra believes that although the film is a success for its producers, distributors losing money isn’t an ideal scenario. “See today as far as the producers are concerned motion films these days are a success. But when you sell the film, you have to take into consideration the money the distributors make. If they don’t make money then the film is a flop. In case of Race 3 Salman Khan made 100, 200 or 300 crore whatever he wants to say, but he has sold the film at a very heavy price and those who have brought the film will lose at least 30-40%. In fact, even now after exaggeration the figures of Rs. 170 cr, the distributors will get only half of that which is Rs. 70-85 cr, and if they have sold all India it for Rs. 110-120 cr, and the film doesn’t make 240 cr the distributors will have obviously lost money. As for distribution of Race 3, Salim Khan has CI (Central India) he has someone there who handles the distribution, while Mumbai, Delhi, and Punjab were acquired by Reliance on advance payment and not on an MG (Minimum Guarantee) but still have not made money. One time they did it because Salman’s father had committed it out of emotion. Now nobody is going to do that. Distributors might approach Salman but then it depends on him whether he wants to return the money or not, but I don’t think he will return any money. Because once you start to give money back, then you cannot go ahead and say the film is a hit. Right now they are just trying to whitewash it by saying it earned 200 cr worldwide and it has made money,” said Mehra

Race 3 mints approx. Rs. 100 cr. in profit for the makers; distributors to lose close to Rs. 20 cr

Komal Nahta reveals that Race 3 is a losing film for the distributors, as they would lose around 20% of their investment. “Race 3 has not performed well. From the box office point of view Race 3 is a losing film, in fact quite a losing film, but for the producer it is quite a profitable venture because they pre-sold several territories of India, and they got huge amounts of money from digital, satellite and music rights. So for them it was very profitable. But for the distributors who paid a heavy price and brought the film, they will stand to lose at least about 20% of their investment. Also some territories were distributed by Salman, but given that he has made so much money on the film that even if the film has not done well in his territories, the money he made will more than offset that loss. If you look at the performance of the film, it has not really worked in any territory; instead it has performed the same across the board,” he added

Komal further revealed that even if Salman refunds the losses entailed by the distributors, it would still be an extremely profitable venture for him. He said, “Talking about loss, if the makers of Race 3 were to refund distributors, which they will not, it will still be a profitable venture. For example if they have earned Rs. 120 cr. the distributors loss would be around Rs. 25-30 cr., and even after refunding this the makers would still make money. But this time distributors won’t approach Salman for a refund, since they know this time there won’t be a refund. Besides I don’t think Salman owes his distributors a refund because it wasn’t like they acquired the film months before, they saw the trailer and then acquired it so in essence it was a calculated risk of sorts. So the refund doesn’t arise.”

Girish Johar, Film and Trade Business Analyst says, “Honestly, this is not a healthy scenario. It is good when the entire chain makes money, as that is what is desired. Realizing this need, there have been instances in the past wherein producers have compensated distributors some percentage of their losses. Even sometimes they give their next film at below par rates adjusting the losses as well. This keeps the producer – distributor bond strong, but if that is not maintained, the producer faces an uphill task of selling their future films as the distributors shy away.”

He further added that the distributors who have entailed losses might soon meet Ramesh Taurani to work out on a solution for this situation. “As per sources the distributors are trying to meet the producer so that they can explain their plight and they hope that some respite is given,” he said.

Source Link: http://www.bollywoodhungama.com/news/features/race-3-mints-approx-rs-100-cr-profit-makers-distributors-lose-close-rs-20-cr/
asked Jul 6 in Box Office Related by bollyranga Production Designer (13,046 points)
36% Accept Rate

12 Answers

+6 votes

Don't take audience for granted all the time.
They didn't spare Rajesh khanna even, Nowadays there are many options for entertainment.
So competition is too much.
TP is too high, social media is at it's best & it's not Tolly where social media perception doesn't matter.
It matters alot for Bolly Multiplex going audience.
Hoping that Bhai will not repeat the same mistake he committed last decade

answered Jul 6 by Roman Production Designer (12,991 points)
+4 votes

answered Jul 6 by THUNDER BIRD Mega Star (207,943 points)

Its distributor fault.why to buy at such exorbant price?

Dekho ye bol kon raha hai..Diwali xmas republic independent pe distributer ko loss dena 60cr club king se sike.. sike inse..

+4 votes

Tubelight - ₹73cr Loss.
Race3 - ₹20cr Loss.

Back to back Distributors ki laashe bicha di...

answered Jul 6 by Rocsky Unit Manager (32,576 points)
+3 votes

As expected no article from BOI...........

answered Jul 6 by kashyap123 Second Unit Director (76,998 points)
+2 votes

I am happy to see such losses. It was a pathetic movie. Now this should wake up Salman. He should stop taking his own stardom for granted

answered Jul 6 by Intense Director (127,859 points)
+2 votes

Article is written by: HIMESH MANKAND [Who isn't any trade analyst]


Now when each website is giving Race 3 Average verdict, opinions from 3 trade analyst are brought who have stopped giving Race 3 BO Figures from Day 5.

I have never seen such planned enmity for Salman's Eid releases that everyone is on toes to prove it's a big failure.....

Salman's 14 Films Distributor Share this decade is bigger than Combine NETT of both SRK & Aamir films this decade, jiska DS doosron ke NETT se bada ho, ppl question him for loss?

How much PROFIT did they make on 10 Big hits? Have they refunded some that made extra??

answered Jul 6 by -OmKara- Production Designer (15,839 points)
edited Jul 6 by -OmKara-

Something is fishy
Seems like a planned negativity to bring down Salman

+2 votes

biggest table profit ever on the time of release... jai ho
biggest table profit ever on the time of release ...tubelight
biggest table profit ever on the time of release....race 3

they buy his movies at biggest prices... because they know how big the star is.

answered Jul 6 by Grand Nova Star (154,218 points)
+1 vote

"Apart from that, the producers received approx. Rs. 40 crore as rebate from the U.A.E Government as a major chunk of film was shot in Abu Dhabi." At that Time Many Blame BOI when BOI said Also Same. Now Bollywood Hungama also say same thing.

answered Jul 6 by Ajay Production Accountant (20,618 points)
+1 vote

Boi haters trolled very badly

answered Jul 6 by shah Executive Producer (65,446 points)
+1 vote

In his best phase Aamir is giving 2000 cr worldwide with Dangal having 9 cr footfalls In Lead Role
900 cr worldwide in guest role With Secret Superstar

And Salman Is Giving Back To Back Laashein On Eid


Next Will Be


On A Side Note- Distribution Loss Of Tubelight>>>Entire Career Of Aamir

answered Jul 6 by Rancho Production Accountant (29,704 points)
edited Jul 6 by Rancho
+1 vote

all set to recover the losses with Bharat

answered Jul 6 by mr.hola Assistant Director (46,078 points)

Agar losses hi recover karte rahenge to profit kab hoga .... kya Aamir hi dilata rahega kya unko profit

Shayad isiliye singles screen theatre owners ne Aamir ko thank you letter bheja.

Agar losses hi recover karte rahenge to profit kab hoga .... kya Aamir hi dilata rahega kya unko profit

Shayad isiliye singles screen theatre owners ne Aamir ko thank you letter bheja.

As Aamir said in Dangal ...

Bets har baar tumhari madad ke liye papa sath nahi honge. Distributors should start doing business based on percentage profit sharing.

According To Komal Nahata
Distributors Lost All Profit They Earned From Dangal Due To Tubelight

Ranga bol toh aise raha hai tb ke badh sidha race3 ayi hai... tzh bul gaya..

0 votes

Distributors are fools.

They buy films at 250 crore price lifetime and film will do 250-300 Blockbuster at Boxoffice but what distributors get? The same price what they paid before. That's it. Where are Profits?

They should buy films at 150 lifetime price and if does 120 there won't be much loss and if film does 250 lifetime then big profits.

Distributors should unite and ask comfortable prices rather than kneeling down to actors.

answered Jul 6 by iamkhan8970 Producer (115,557 points)

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