The Siddharth Anand directed film War released a while back and has been doing immensely well at the box office. Starring Hrithik Roshan and Tiger Shroff, War which was one of the most keenly anticipated releases has in fact been setting new box office benchmarks since hitting screens. In this special report we take a look at the Economics of War to understand how profitable the venture was for its makers.
Made on a budget of Rs. 170 cr. [CoP Rs. 150 cr. + P&A Rs. 20 cr.] War has been raking in the moolah and is expected to earn Rs. 310 cr. at the domestic box office. Given this estimated lifetime revenue from the box office, the makers of War stand to make Rs. 139.5 cr. as the distributor share from the domestic business, Rs. 40.5 cr. from the overseas markets and another Rs. 150 cr. from the sale of the film’s satellite and digital rights. Thanks to this, the makers of War, Yash Raj Films is expected to earn a profit of Rs. 170 cr. with nearly 100% RoI [Return on Investment].
The satellite and digital revenues were linked to box office performance and had a 25 cr. mark-up from 125 cr. to 150 cr. on the movie breaching the 300 cr. mark at the India box office.
However, the interesting part here is that, for War, Hrithik Roshan went in for a backend deal as a partner in profits with Yash Raj Films. Also both Hrithik Roshan and Tiger Shroff were signed two years ago at then prevalent rates.
Assuming 30 cr. remuneration and 40% share in profits, Hrithik Roshan is expected to walk away with approx. 98 cr. as his share of monies.
Economics of War
Cost Of Production - 150 Cr. (Cost after inclusion of rebates, CoP also includes all fees/remuneration)
Cost Of Prints and Publicity (P&A) - 20 Cr.
TOTAL COST - 170 Cr.
India Theatrical Box Office - 310 Cr. (Expected)
Distributor's share (A) - 139.50 Cr.
Overseas Theatrical Box Office – 90 Cr. (Expected)
Distributor's share (B) - 40.50 Cr.
Satellite and Digital (C) - 150 Cr.
Music, Merchandising & Brand Placement (D) - 10 Cr.
TOTAL RECOVERIES (A+B+C+D) – 340 Cr.
RETURN ON INVESTMENT (ROI) -
Also see Taran Adarsh's views
⭐ Actors were signed two years ago at then prevalent rates.
⭐ CoP [₹ 150 cr] includes all fees/remuneration.
⭐ Hrithik has a backend deal. He's a partner in profits.
⭐ #War will be a franchise like #MissionImpossible series, with Hrithik staying constant.
2019 has been a fantastic year for #Bollywood and the super success of #War reiterates the fact that *well made* biggies - targeted at PAN India audience - will always be embraced warmly by the paying public... Expecting #YRF to green light #War2 soon.
Also, they pave way for mid-range and metro-centric films, in the process... The biggies cultivate / foster the cinema-going habit, which is pivotal these days, since the digital medium is strengthening its roots in India. #War
Tent pole / event / big ticket films are a must... They get the numbers... They drive the audience [in hordes] to movie halls... They contribute to ticket sales and footfalls... They infuse confidence in the financial sector. #War