Zero Distribution Rights Sold For 100 Crore: At What Collections Will This Shah Rukh Khan Film Be A BLOCKBUSTER?

The All India Distribution Rights of Shah Rukh Khan’s much anticipated film, Zero have been valued for Rs 100 to 105 crore, and different distributors across the country have acquired the rights. As compared to the conventional model of selling the distribution rights to a studio, Red Chillies Entertainment have sold the rights to the individual distributors on advance basis. Only Khan films have fetched amount in excess of Rs 100 crore towards distribution rights, and Zero is no different.

The Aanand L Rai directorial has fetched higher amount than previous Shah Rukh Khan films like Jab Harry Met Sejal and Raees, however it has fallen a little short of Dilwale, which was sold for Rs 125 to 130 crore. By pre-selling almost all possible rights, the producers of Zero are already in profits, and there is not a lot of burden on the distributor as well because the liability of theatrical loss from hereon lies on the producers. Basically, this is a fine deal wherein every party stands a chance to make solid profits if the content of Zero lives on to the humongous expectations.

In case, the share of the film is less than Rs 100 crore, the distributors can claim refund for the money lost by them by presenting an income statement to the producers. However, if the share is in excess of Rs 100 crore, the profits will be shared by Red Chillies and Distributors in the ratio of 85:15 in favour of producers. If the distributor share is Rs 150 crore, Rs 100 crore will first be pocketed by the distributors thereby recovering the investment.