Economics Of Karan Johar’s Agneepath Explained
That Agneepath is a money-spinner is now a foregone conclusion after the earth-shattering start it took on its opening day (26th January, Thursday). The trade may have gone into overdrive on Friday (27th) saying that collections had crashed at places but let the trade rest assured that this won’t change the hit status of the film. The economics of Agneepath is reasonably clear.
The total investment including cost of production, promotion and release is approximately Rs. 75 crore.
Karan Johar had pre-sold the satellite rights for about Rs. 35 crore, audio rights for around Rs. 9 crore, and Overseas and home video rights for nearly Rs. 12 crore. That means, the producer had already recovered roughly in the region of Rs. 56 crore. With only about Rs. 19 crore remaining to be recovered to cover the total investment, it was anybody’s guess that Agneepath would break even at the end of the first 4-day weekend itself. But given the Rs. 23 crore opening day collection, it is certain that the break-even point will be reached on January 28 itself, that is, if it hasn’t already been reached on January 27.
That means, the shares that will accrue from today onwards would all go towards profits. What will the final figure of profit be? Well, it could be anything but nothing less than Rs. 30 crore! Of course, the figure of profit could go up to more or even much more than Rs. 30 crore but that’s the bare minimum profit the film will make! Wow!! A minimum of Rs. 30 crore as profit on an investment of Rs. 75 crore!