Salman Khan’s big Eid 2018 release, Race 3 has failed to live onto the expectations and the movie is now sure to end its run at collections below Rs 175 crore in India. The movie is one of the biggest underperformers of Salman Khan at the Box-Office in last 8 years, however the same was expected ever since when the makers had announced the film. Apart from Salman Khan’s presence, right from the star-cast to the music, the film had nothing going in its favour.
The movie recorded an excellent opening weekend in India, as it raked in approximately Rs 105 crore, however after that the collections came down falling with every passing day. The 9-day total of Race 3 stands at approximately Rs 150 crore, and the film is expected to end its run at approximately Rs 165 to 167 crore. While Salman Khan Films and TIPS industry distributed the film at 3 major circuits i.e. Delhi/UP, Mumbai City and East Punjab, the film was sold to individual distributors at other centres. The sale value of film in other circuits stand at approximately Rs 65 crore, and the final distributors share in these circuits would fall in the range of Rs 47 to 49 crore, which means that the aggregate losses of individual distributors would be around Rs 16 to 18 crore. The film would have entailed massive losses in Mumbai, Delhi/UP and East Punjab as well had it been sold, however self-distribution at these centres has helped the film stand in a better position. If we allocate a fictional value to all India rights of the film on proportionate basis, it would fall in the range of Rs. 115 to 120 crore, as compared to which, the all India share would fall in the range of Rs 87 to 89 crore, which would have meant aggregate loss of Rs 28 to 33. However, since the same has not happened, it is futile to calculate the profits and losses bases on “Ifs and Buts.”
From distributors point of view, the film will be in minus, however the producers have made massive profits. In-fact, the profits for the producers i.e. Salman Khan Films and TIPS Industries are one of the highest ever for a Bollywood film. The producers pocketed a huge chunk of amount from non-theatrical revenues on Salman Khan’s brand name and consistent track record of success theatrically as well as on the small screen. Theatrically, the film is a loss-making preposition, however, the revenues for the producers are humongous, and there would be no harm if the producers decide to make good the losses suffered by the individual distributors. Apart from digital and satellite, the producers also recovered a major chunk of amount via rebate given by UAE as the film was majorly shot in Abu Dhabi.
As far as overseas revenues are concerned, the film was distributed by YRF on commission basis, which means that the production house would charge 6 to 7% of the distributors share as their fees and the remaining amount would be pocked by Salman Khan Films and TIPS Industries. Initially, the producers of Race 3 were demanding approximately Rs 160 crore from studios to sell worldwide distribution rights, however none of them were really convinced to pay the same. Had any studio bought the film for the amount demanded by the producers, the same would have left a massive hole on their pockets. Thank god, the deal eventually didn’t take place, as the film now is in a much better position as compared to what it would have been in.
Here’s a look at the economics of Race 3:
Cost of Production: Rs 130 crore (Excluding Salman Khan Fees)
Print and Publicity: Rs 20 crore
Total: Rs 150 crore
Digital + Satellite Rights: Rs 160 crore
Music Rights: Rs 15 crore
Rebate: Rs 40 crore (From UAE)
Expected India Share: Rs 40 crore (Mumbai City + Delhi + UP + Punjab)
Expected Overseas Share: Rs 30 crore
Sale of India Theatrical Rights: Rs 65 crore
Total Revenue: Rs 310 crore
Total Profit: Rs 160 crore
Acquisition of India Theatrical Rights: Rs 65 crore (Excluding Mumbai, Delhi/UP, Punjab)
Indian Theatrical Share: Rs 47 to 49 crore (Excluding Mumbai, Delhi/UP, Punjab)
Total Loss: Rs 18 to 16 crore.
Now that the producers have made profits, and distributors have suffered losses, the scenario is extremely conflicting, and the film can’t be called a HIT under any circumstances. However, the final collections of the film in India will eventually decide the verdict i.e. Below Average, Average or Plus. But to sum it up, not getting a studio on board proved to be a blessing in disguise for team Race 3.