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Decoding The Economics Of Sanju: How Profitable Is This Ranbir Kapoor – Rajkumar Hirani Film?

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Sanju is the first time when a Non-Salman Khan, Shah Rukh Khan or Aamir Khan Film that has rewritten the Box-Office records.

Rajkumar Hirani’s Sanju starring Ranbir Kapoor in lead has emerged the biggest money spinner of the year, and is on its course to emerge one of the biggest hit of all time. The film has done phenomenal business across the country and is riding on a positive word of mouth from classes and masses alike. Rajkumar Hirani’s command over the story and Ranbir Kapoor’s path-breaking performance are two of the major reasons for the film to perform so well at the Box-Office.

In-fact, Sanju is the first time when a Non-Salman Khan, Shah Rukh Khan or Aamir Khan Film that has rewritten the Box-Office records. Padmaavat too would have emerged one of the biggest grosser of all time, but the ban in Gujarat and Rajasthan hampered the chance. The 10-day business of Sanju stands at Rs 262 crore, and the movie is expected to collect in excess of Rs 350 crore by the end of its run. Talking about the economics of Sanju, Fox Star Studios had inked a 3-film deal with Vidhu Vinod Chopra wherein they outright acquired the worldwide distribution rights of Sanju, Ek Ladki Ko Dekha Toh Aisa Laga and Vidhu Vinod Chopra’s next directorial for a sum of Rs 180 crore.

The value assigned to Sanju as a film was Rs 110 crore, whereas the other two films combined were acquired for an aggregate sum of Rs 70 crore. However, the earth-shattering performance of Sanju at the global Box-Office has made the deal profitable for the studio even before the release of the next two films in the deal. Sanju will not just help the studio break-even as far as the entire deal is concerned, but also help them make a reasonable amount of profit. The entire chunk of money that Ek Ladki Ko Dekha Toh Aisa Laga and Chopra’s next earn would be nothing but profit for the distribution company, however, without send thoughts those films would be judged on individual performance based on the values assigned to them in the deal.

As compared to the acquisition price of Rs 110 crore by Fox Star Studios, the worldwide share of Sanju as of today stands at Rs 173 crore, which has resulted in a healthy profit of Rs 63 crore. There is still a lot of fuel left in the film, and the final worldwide share of Sanju is expected to be in the range of Rs 225 crore. By the end of its run, the profits for the studio in absolute terms is expected to be around Rs 115 crore, however there well might be a clause to share a certain amount of profit with director Rajkumar Hirani and producer Vidhu Vinod Chopra. While the above we analysed only from distributors point of view, even the producers have filled their pockets by selling the satellite, digital, music and theatrical rights. The table profit for VVC and Rajkumar Hirani is estimated to be at-least in the range of Rs 100 to 105 crore.

Here’s a breakdown of profits for the distributors, who are the most important people as far as the film business is concerned:

  • Cost of Acquisition: Rs. 110 crore
  • India Theatrical Share: Rs. 130 crore and counting
  • Overseas Theatrical Share: Rs. 43 crore and counting
  • Total: Rs. 173 crore and counting
  • Profit: Rs. 63 crore and counting

Talking about the worldwide business, the total 10-day collections of Sanju stands at a massive sum of Rs. 450 crore Gross). The film is indeed one of the most profitable venture of this decade if we take into account the profits for producers as well as distributors.

http://www.koimoi.com/box-office/decoding-the-economics-of-sanju-how-profitable-is-this-ranbir-kapoor-rajkumar-hirani-film/

asked Jul 10 in Box Office Related by iamkhan8970 Producer (115,557 points)
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they would have had a clause I think, otherwise selling a Raju Hirani movie for only 110cr is shooting yourself in the foot.

answered Jul 10 by mr.hola Assistant Director (46,078 points)
selected 6 days ago by iamkhan8970

110 is huge or low ? PK was also sold for around 118 crore something worldwide.

He has proven himself over and over again.

And PK definitely had a huge share.

So selling at 110cr is fine but adding a clause would be wise.

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