The answer is, it is neither a hit nor a flop.
Then what is it? Well, it’s a successful film but not big enough to be referred to as a hit.
On an investment of Rs. 135 crore of Eros International, the corporate house will stand to make a profit of Rs. 25-30 crore which means a return of 20% on investment.
Let’s take a look at the profit & loss account of Ra.One.
COST: Rs. 135 crore
|1||Satellite & Music Rights||Rs. 40 crore||(Already final)|
|2||India Video||Rs. 02 crore||(Expected)|
|3||India Theatrical (Hindi version)||Rs. 55 crore||(1st week’s share)|
|4||India Theatrical (Tamil & Telugu dubbed versions)||Rs. 04 crore||(1st week’s share)|
|5||India Theatrical (2nd & further weeks)||Rs. 06 crore||(Expected)|
|6||Overseas Theatrical (All versions)||Rs. 16 crore||(1st week’s share)|
|7||Overseas Theatrical (2nd & further weeks)||Rs. 10 crore||(Minimum expected)|
|8||Subsidy from UK government||Rs. 28 crore||(Letter recd. by Eros; cheque awaited)|
|TOTAL REVENUES:||Rs. 161 crore|
Therefore, as against a cost of Rs. 135 crore, Eros will earn revenues of Rs. 161 crore. The film is, therefore, expected to make a profit of Rs. 26 crore.
Record For Brand Tie-Ups
A total of Rs. 12 crore (approximately) received by Shah Rukh Khan’s Red Chillies Entertainment from brand tie-ups has not been considered in the P & L Account above since no share from this will accrue to Eros International.
The total value of the brand tie-ups was Rs. 52 crore. Of this, Rs. 40 crore did not come in as cash as they were barter (advertisement) deals. This amount (Rs. 52 crore) is a record for brand tie-ups.
Profit/Loss For Exhibitors & Distributors
N.B.: (i) The Revenues that have already come in are close approximations of actual revenues. The expected figures, on the other hand, are estimates on the lower side.
(ii) The figures against theatrical revenues in (3), (4), (5), (6) and (7) above are distributors’ shares. These are not to be confused with net and gross collections.
(iii) A couple of distributors, to whom Eros sold the distribution rights for some circuits will not be able to recover their cost. C.P. Berar is one such circuit, the distributor of which will not be able to recover his investment. But otherwise, most of the distributors will recover their cost.
(iv) Some exhibitors of small centres, who booked the film on fixed hires or minimum guarantees, would stand to lose part of their investments.
(v) As against Eros’ profit of between Rs. 25 and 30 crore, the total (combined) loss of all the exhibitors and distributors put together would be in the region of Rs. 2.5-3 crore.